News

Brainspark buys into new Polar High-definition DVD technology (10/4/2006)

Brainspark has announced that it is investing in Polarizonics Corp. Dr. Oron Zachar, founder of Polarizonics Corp (PL), has developed a method of potentially increasing the data storage capacity and read rate of both red and blue laser DVDs by up to three times, a process described as Polar High-definition DVD (PH-DVD) Technology. This technology exploits the polarization element contained in all current DVD formats which is not being used for the physical encoding of the information on the disc. Polar High-definition will significantly increase both the speed and capacity of DVDs. Applications have been made for patents in respect of this technology.

The PH-DVD format can be applied as a modification to increase the data read rate and capacity of any of the competing blue laser formats (such as Sony Blu-Ray and Toshiba HD-DVD). Moreover, the Polarizonics Technology may provide for a red-laser capability to support HD content. Thus, with the potential for over 100GB discs, this innovation is of particular importance for satisfying the coming demands of increased disc capacity of HD video content of movies and video games. Importantly Polarizonics Technology requires no change in the disc structure itself, and present mass replication equipment can be used without modification or additional costs. Hence, PT can be brought to market within a very short time scale. The PH-DVD format also introduces a new hardware level suppression of the possibility of unlicensed replication piracy.

Francesco Gardin, Brainspark chairman commented: "We believe that Polarizonics Technology, developed by leading scientists, could have a significant impact on the development of high definition DVDs. Nevertheless, the Board is aware that this is a high-risk investment given the highly competitive nature of this market."

Mr Gardin adds: "This is Brainspark's first new portfolio company investment since 2003. It is an early stage investment in very high-risk technology and is in line with the declared strategy of the venture capital side of our business. This investment, made in conjunction with a number of sophisticated US private investors, is an indication of the new network of relationships established by the Brainspark Board which is central to our strategy of both identifying selected investment opportunities globally and raising the necessary seed capital."

Brainspark will invest $100,000 (£57,000) in Series B preferred Polarizonics Stock representing a holding of 22,941 shares or approximately 1.96% of the enlarged issued share capital of the company. The price is based on a pre-investment valuation of $5,000,000 (£2,850,000) or $4.359 (£2.485) per share. This investment is part of a funding round raising $250,000 (£142,000) for PL in total, with $695,000 (£396,000) having already been raised with private US investors.

Brainspark has been awarded a transferable option for an additional sum of $50,000 (£28,500) which expires on 15th July 2006, under the same terms of the current Series B Preferred Shares.