Minister announces three new EDGE companies

Industry, Trade and Technology Minister Sandra Kelly today announced that INSTRUMAR Ltd. and NewLab Clinical Research Inc., both of St. John�s, and the Surprise Bag Company Inc. of Carbonear are the latest companies to qualify for Economic Diversification and Growth Enterprises (EDGE) status.

"These businesses represent three growing sectors in Newfoundland and Labrador's economy; advanced technology, biotechnology and manufacturing. Growth in these and other industries is strengthening and diversifying our province's economy," noted Minister Kelly. "I am pleased that the EDGE program is enabling these businesses to develop, and I commend them for their entrepreneurial spirit and determination."

As one of the province�s growing advanced technology firms, INSTRUMAR Ltd., a knowledge-based company founded in 1979, received EDGE status for the commercialization of its technologies. Initially founded as a research and development firm, the company has built a solid reputation for developing sensor technology using electroquasistatic measurement techniques. To capitalize on its proprietary technology, the company is expanding its focus towards the commercialization of its specialized sensors for the aerospace, polymer fiber, and oil and gas industries. This expansion has enabled INSTRUMAR to create 12 new positions over the past year with an estimated 40 to 50 additional new positions expected over the next two to three years.

NewLab Clinical Research Inc. of St. John�s, which was incorporated last year, received EDGE status for the establishment of a research facility to conduct clinical research contracts for pharmaceutical companies. It is currently concentrating on dermatology research and has secured 20 contracts in this field. Eventually, NewLab plans to pursue mutual cooperation deals with other research institutions in Canada and the United States. The company currently employs 15 people and plans to hire an additional five employees by the end of this year.

Based in Carbonear, the Surprise Bag Company Inc. received EDGE status for the production, distribution and marketing of children�s surprise packages, including surprise bags, surprise eggs, and surprise cones. The products, which contain candy, small toys, games and collectibles, are marketed to children aged four to 10 years old and are not currently made locally. Merchandised under various labels such as Dick Turtle and Trixie�s, the company distributes the surprise packages across Canada. Recently, the Surprise Bag Company was licensed by Viacom International, the producers of the popular children�s cartoon Rugrats�, to produce a range of products under the Rugrats� brand name. The company is also under contract with a group of wholesale distributors in Central and Western Canada for the development and production of surprise bags and surprise eggs under the distributors� corporate private label. With nine people currently on staff, the company anticipates hiring an additional eight full-time and four part-time employees over the next 12 months.

The EDGE program is available to both new and expanding businesses. Companies meeting EDGE criteria are eligible for a 10-year tax break from provincial corporate income tax and provincial payroll tax, followed by a five year phase-in of these taxes, unserviced Crown land for a nominal fee, and access to a facilitator who will help obtain the required permits and licences associated with start up or expansion. In addition, many of the province�s municipalities participate in the EDGE program and offer similar tax holidays from property and/or business tax.

To be designated an EDGE corporation, an applicant must show potential for minimum capital investment of $300,000 or incremental sales of $500,000 annually, the potential to create and maintain at least 10 permanent jobs, and must provide a substantial net economic benefit to the province, among other requirements.

Media contact: Jacqueline Simon, Communications, (709) 729-0050.

2000 09 18 11:00 a.m.