Caseridge Capital Corporation

Caseridge TechSys DealBook May 18, 2010

Caseridge Capital Corporation

1 First Canadian Place,

100 King Street West, Suite 5700
Toronto, Ontario M5X 1C7
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TECHNOLOGY & SPECIAL SITUATIONS REVIEW: MAY 18, 2010

 Caseridge Capital Corporation
Caseridge TechSys DealBook May 18, 2010

Contents
CASERIDGE TECHSYS COMMENTARY.......................................................................................................... 3
PUBLIC VENTURE CAPITAL AND NEW ISSUES INCREASE BY 281% IN 2010 .................................................................................... 3
THE CASERIDGE TECHSYS DEALBOOK NETWORK.................................................................................... 4
NEW ISSUE ACTIVITY – CASERIDGE TECHSYS INDEX – FIRST QUARTER 2010........................................ 5
PERFORMANCE UPDATE: CASERIDGE TOP PICKS LIST 2010: .................................................................... 6
CASERIDGE TOP PICKS LIST 2010 ..................................................................................................................................................... 6
RECENT ANALYST ESTIMATE CHANGES (TOP PICKS LIST: 2010) .................................................................................................... 7
CASERIDGE TECHSYS INDEX COMPONENT SUMMARY AS AT MAY 14, 2010 ........................................................................................................... 9
M ARKET S ENTIMENT C ASERIDGE T ECH S YS U NIVERSE ....................................................................................................... 10
BULLISH SENTIMENT IN THE CASERIDGE TECHSYS INDEX CONTINUES ITS DECLINE WITH ONLY 22% OF THE COMPANIES IN OUR 250 COMPANY INDEX LISTED
AS BULLISH. ........................................................................................................................................................................................................... 10

CASERIDGE GMM TRACKING AND GP GROWTH TRENDS ........................................................................................................... 11

THE GROSS MARGIN MULTIPLE (IN PURPLE) (“GMM”) INCREASED TO 1.28 FROM 1.22 IN THE PREVIOUS WEEK AS REPORTED GROSS PROFIT RESULTS
CONTINUE TO DISAPPOINT. THE NQA GMM, WHICH IS BASED ON ANALYST CONSENSUS ESTIMATES FOR GROSS PROFITS IN THE “NEXT QUARTER”, DECLINED
TO 1.13 FROM 1.20 IN THE PREVIOUS WEEK............................................................................................................................................................ 11

CASERIDGE CANADIAN TECHSYS CAPITAL MARKET SUMMARY (LAST 3 MONTHS) .......................... 12

WEEKLY EVENTS CALENDAR FOR THE WEEK ENDING MAY 15, 2010 ..................................................... 15
MOSAID TECHNOLOGIES INC. (TSX:MSD) ......................................................................................................................................................... 15
CRYPTOLOGIC LIMITED (TSX:CRY) ..................................................................................................................................................................... 15
CRYPTOLOGIC LIMITED (TSX:CRY) ..................................................................................................................................................................... 15
CANADIAN HELICOPTERS INCOME FUND (TSX:CHL.UN) ..................................................................................................................................... 15
CYBERPLEX INC. (TSX:CX) .................................................................................................................................................................................. 15
TOTAL ENERGY SERVICES INC. (TSX:TOT) ......................................................................................................................................................... 15
AG GROWTH INTERNATIONAL INC. (TSX:AFN) ..................................................................................................................................................... 15
LAB RESEARCH, INC. (TSX:LRI) .......................................................................................................................................................................... 15
ZONGSHEN PEM POWER SYSTEMS INC. (TSX:ZPP) ........................................................................................................................................... 15
MDC PARTNERS INC. (TSX:MDZ.A) .................................................................................................................................................................... 15
CYBERPLEX INC. (TSX:CX) .................................................................................................................................................................................. 15
LAB RESEARCH, INC. (TSX:LRI) .......................................................................................................................................................................... 15
ESPIAL GROUP, INC. (TSX:ESP) .......................................................................................................................................................................... 15
May 19, 2010

HEMISPHERE GPS INC (TSX:HEM) ..................................................................................................................................................................... 15

ZEDI, INC. (TSXV:ZED) ........................................................................................................................................................................................ 15
JDS UNIPHASE CORP. (NASDAQGS:JDSU)......................................................................................................................................................... 15
TIMMINCO LIMITED (TSX:TIM) .............................................................................................................................................................................. 15
VECTOR AEROSPACE CORPORATION (TSX:RNO)................................................................................................................................................ 15
KEG ROYALTIES INCOME FUND (TSX:KEG.UN) .................................................................................................................................................. 15
VELAN, INC. (TSX:VLN) ....................................................................................................................................................................................... 15
PURE TECHNOLOGIES LTD. (TSXV:PUR) ............................................................................................................................................................ 15
Caseridge TechSys DealBook

SOLIUM CAPITAL INC. (TSX:SUM)........................................................................................................................................................................ 15

VELAN, INC. (TSX:VLN) ....................................................................................................................................................................................... 15
MIGAO CORPORATION (TSX:MGO) ...................................................................................................................................................................... 15
ZEDI, INC. (TSXV:ZED) ........................................................................................................................................................................................ 15
JDS UNIPHASE CORP. (NASDAQGS:JDSU)......................................................................................................................................................... 15
DIRECTCASH INCOME FUND (TSX:DCI.UN) ........................................................................................................................................................ 15
IW EB GROUP INC. (TSXV:IWB) ........................................................................................................................................................................... 15
CRITICALCONTROL SOLUTIONS CORP. (TSX:CCZ) .............................................................................................................................................. 15
HYDUKE ENERGY SERVICES INC. (TSX:HYD) ...................................................................................................................................................... 15
SYLOGIST LTD. (TSXV:SYZ) ................................................................................................................................................................................ 15
ESPIAL GROUP, INC. (TSX:ESP) .......................................................................................................................................................................... 15

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 PULSE SEISMIC INC. (TSX:PSD) .......................................................................................................................................................................... 15
BRIDGEWATER SYSTEMS CORPORATION (TSX:BWC) ......................................................................................................................................... 15
ROUTE1 INC. (TSXV:ROI) .................................................................................................................................................................................... 15
ROUTE1 INC. (TSXV:ROI) .................................................................................................................................................................................... 15
IW EB GROUP INC. (TSXV:IWB) ........................................................................................................................................................................... 15
CARMANAH TECHNOLOGIES CORP. (TSX:CMH) .................................................................................................................................................. 15
DYNEX POWER INC. (TSXV:DNX) ........................................................................................................................................................................ 15
ELECTROVAYA INC. (TSX:EFL) ............................................................................................................................................................................ 15
AEROMECHANICAL SERVICES LTD. (TSXV:AMA) ................................................................................................................................................ 15
MCCOY CORP. (TSX:MCB) ................................................................................................................................................................................. 15
SIERRA W IRELESS INC. (TSX:SW) ....................................................................................................................................................................... 15

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 Caseridge TechSys Commentary
Public Venture Capital and New Issues Increase by 281% in 2010

Driven by a $263MM private placement by Westaim Inc., new issue activity in the Caseridge TechSys
Index increased by 281% during the first quarter of 2010 versus the same quarter in 2009. During the first
quarter $459MM was raised across 19 Caseridge TechSys component companies. Only $163MM was
raised in 2009 across 13 component companies. These figures include only private placement activity in
public enterprises (PIPEs) and public offering transactions of listed equities for those companies that are
included in the 250 company Caseridge TechSys Index. It excludes debt and debt related transactions.

By contrast, the Canadian Venture Capital and Private Equity Association (CVCA) and Thomson Reuters
announced that a total of $276MM was invested in privately-held companies across Canada in both debt
and equity related transactions across a wider range of unlisted or private companies, down from the
$279MM invested in 2009. Across both the CVCA and the Caseridge TechSys Indexes, total financing
activity increased from $442MM in 2009 to $735MM in 2010, an increase of 166%.

On a normalized basis, which excludes the value of the largest and smallest investments of each period,
$195MM was raised in 2010 vs. $119MM in 2009, $232MM in 2008 and $343MM in 2007 for companies in
the Caseridge TechSys Index. The complete transaction list is included below.

We hope that you enjoy this week’s Caseridge TechSys DealBook.

Adam E. Adamou
adamou@caseridge.com
May 19, 2010
Caseridge TechSys DealBook

Caseridge Capital Corporation 100 King Street West, Suite 5700, Toronto, M5X 1C7
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The Caseridge TechSys DealBook Network

Caseridge has expanded the TechSys DealBook via the Caseridge TechSys DealBook
Network on LinkedIn. Since going “live” the Caseridge TechSys DealBook Network has grown to one of
the largest targeted network of industry professionals in Canada. If you are looking for connections with
those that are connected, this is the perfect venue for you.

Caseridge is also active on twitter with real time updates on changes to the
market, news releases and changes in target recommendations. You can follow our feed on twitter at
http://twitter.com/caseridge.

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 New Issue Activity – Caseridge TechSys Index – First Quarter 2010

Transaction
Date Issuer Exchange:Ticker Transaction Types Value (IUSD)
01/25/2010 Westaim Corp. (TSX:WED) TSX:WED Private Placement 263.36
03/18/2010 GLV, Inc. (TSX:GLV.A) TSX:GLV.A Private Placement 42.86
01/19/2010 Pure Technologies Ltd. (TSXV:PUR) TSXV:PUR Public Offering 32.91
02/02/2010 MOSAID Technologies Inc. (TSX:MSD) TSX:MSD Public Offering 25.96
01/13/2010 Enablence Technologies Inc. (TSXV:ENA) TSXV:ENA Public Offering 23.34
02/11/2010 Labopharm Inc. (TSX:DDS) TSX:DDS Public Offering 20.0
01/29/2010 Amica Mature Lifestyles Inc. (TSX:ACC) TSX:ACC Public Offering 14.23
03/18/2010 Keg Royalties Income Fund (TSX:KEG.UN) TSX:KEG.UN Public Offering 10.75
02/18/2010 D-Box Technologies Inc. (TSXV:DBO.A) TSXV:DBO.A Private Placement 6.94
02/23/2010 Catch the Wind, Ltd. (TSXV:CTW.S) TSXV:CTW.S Private Placement 5.16
01/07/2010 BioteQ Environmental Technologies Inc. (TSX:BQE) TSX:BQE Private Placement 3.79
01/28/2010 Opsens Inc. (TSXV:OPS) TSXV:OPS Private Placement 3.45
02/26/2010 Route1 Inc. (TSXV:ROI) TSXV:ROI Private Placement 1.8
01/18/2010 01 Communique Laboratory Inc. (TSX:ONE) TSX:ONE Private Placement 1.07
03/10/2010 QHR Technologies Inc. (TSXV:QHR) TSXV:QHR Private Placement 1.03
03/17/2010 Yangaroo Inc (TSXV:YOO) TSXV:YOO Private Placement 0.818
03/08/2010 Mint Technology Corp. (TSXV:MIT) TSXV:MIT Private Placement 0.632
03/24/2010 Webtech Wireless Inc. (TSX:WEW) TSX:WEW Private Placement 0.496
01/13/2010 SmartCool Systems Inc. (TSXV:SSC) TSXV:SSC Private Placement 0.35
May 19, 2010
Caseridge TechSys DealBook

Caseridge Capital Corporation 100 King Street West, Suite 5700, Toronto, M5X 1C7
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Performance Update: Caseridge Top Picks List 2010:
In the comprehensive list, the Caseridge Top Picks re flat on the week (on an equal weighted basis) and
down by 3.5% on a YTD basis. Street Analysts went to town downgrading GLN, ABT, CMH, MT, HEM,
EXF and TWT while upgrading WIN, SW, RCM and CSU. Our GMM Targets remain unchanged on the
week.

Caseridge Top Picks List 2010

Recent “Consensus” % Change % Change

Company Name Ticker Price GMM Target Target** [1-Week [YTD]
Icron Technologies Corp. † TSXV:IT $ 0.36 $1.00► NA 9.09 12.50
$ 2.00► $2.00►
TSXV:RCN
Radiant Communications Corp. $ 0.90 5.88 (10.00)
Wi-Lan Inc. TSX:WIN $ 3.22 $3.00► $4.61▲ 4.55 22.43
Cangene Corp. † TSX:CNJ $ 3.95 $7.00► $7.31► 3.95 (22.55)
Sierra Wireless Inc. † TSX:SW $ 8.22 $15.00► $11.78▲ 3.66 (26.48)

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Serenic Corp. † TSXV:SER $ 0.35 $ 1.20► NA 2.94 (23.91)
Enghouse Systems Ltd. † TSX:ESL $ 8.50 $14.00► $10.50► 2.91 (1.16)
RuggedCom Inc. TSX:RCM $ 20.00 $ 25.00► $ 23.57▲ 2.83 11.36
Aastra Technologies Ltd. † TSX:AAH $ 25.45 $50.00► $36.71► 2.79 (26.55)
Computer Modelling Group Ltd. TSX:CMG $ 18.49 $20.00► $18.43► 2.72 22.94
Wireless Matrix Corp. † TSX:WRX $ 0.80 $ 1.50► $1.21► 2.56 (21.57)
Vector Aerospace Corporation TSX:RNO $ 6.35 $10.00► $9.00► 2.25 4.10
Glentel Inc. † TSX:GLN $ 16.29 $25.00► 19.33▼ 1.75 21.57
Absolute Software Corporation† TSX:ABT $ 4.27 $ 7.00► $ 6.05▼ 1.67 (18.67)
Carmanah Technologies Corp. † TSX:CMH $ 0.63 $1.00► $1.14▼ 1.61 (24.10)
Miranda Technologies Inc. TSX:MT $ 4.75 $10.00► $6.07▼ 1.06 (12.04)

F: 416-915-3177
Descartes Systems Group Inc. † TSX:DSG $ 6.05 $7.50► $7.27► 0.33 (4.27)
Intermap Technologies Corp. † TSX:IMP $ 1.15 $2.50► $3.17► 0.00 (36.81)
C-Com Satellite Systems Inc. TSXV:CMI $ 0.30 $0.70 ► NA 0.00 (7.69)
March Networks Corporation † TSX:MN $ 3.55 $ 9.00► $5.50► (1.11) (11.25)
Hemisphere GPS Inc. † TSX:HEM $ 0.83 $1.40► $1.37▼ (1.19) (2.35)
EXFO Inc. † TSX:EXF $ 5.67 $9.00► $7.01▼ (1.39) 40.69
BIOREM Inc. TSXV:BRM $ 0.70 $2.00► NA (1.41) 32.08
MOSAID Technologies Inc. † TSX:MSD $ 20.44 $ 35.00► $27.20► (1.73) 7.47
Constellation Software Inc. TSX:CSU $ 42.10 $50.00► $45.41▲ (2.68) 14.56
20-20 Technologies Inc. TSX:TWT $ 3.00 $ 5.00► $3.36▼ (4.41) (20.73)
CriticalControl Solutions Corp. † $ 1.50► $1.30►

P: 416-915-4142
TSX:CCZ $ 0.65 (9.09) (1.64)
Vecima Networks Inc. TSX:VCM $ 4.85 $7.50► $9.13► (27.61) (16.38)
AVERAGE 0.07% (3.52%)
UR Under
*As of previous week’s stock market close NA = Not Any Review ** ACQUIRED
† Indicates that Caseridge employees or members of their family own or beneficially control shares in the specified companies.
These consensus target prices are based on the target prices of a sample of analysts that we track and we do not necessarily track all of the analysts in the coverage universe

On a value weighted basis the Top Picks are down by 9.97% over the last month versus a loss of 8.59% for
Caseridge Capital Corporation |

the full TechSys universe. The SPX declined by 1.55% while the Russell 2000 gave back 3.93% on the
month. The Caseridge TechSys Top Picks and the Caseridge TechSys Universe are up by 36% and 48%
over the last twelve months:
Market View Last Month Return (%) Relative Performance LTM Return (%) Relative Performance
vs. the Top Picks
Caseridge 2010 Top Picks (9.97) NA 35.58 NA
Canadian TechSys Universe (8.59) +1.38% 47.93 +12.35%
BENCHMARKS
S&P/TSX Composite Index (1.55) +8.42% 21.99 -13.59%
Russell 2000 Index (3.93) +6.04% 44.37 +8.79%

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 Recent Analyst Estimate Changes (Top Picks List: 2010)
Company Name Broker Data Point Period Consensus Consensus
Before After
Upward Morneau Sobeco Income Fund Scotia Capital EPS FY 2010 0.41 0.46
Revision (TSX:MSI.UN) Normalized

Upward Stantec Inc. (TSX:STN) Scotia Capital EPS FQ2 2010 0.489 0.492
Revision Normalized
Downward Stantec Inc. (TSX:STN) Scotia Capital EPS FY 2010 2.021 2.009
Revision Normalized
Downward Terago Inc. (TSX:TGO) Macquarie Research EPS FQ2 2010 -0.104 -0.115
Revision Normalized
Downward Terago Inc. (TSX:TGO) Macquarie Research EPS FY 2010 -0.374 -0.393
Revision Normalized
Downward Rocky Mountain Dealerships, Inc. Macquarie Research EPS FQ2 2010 0.367 0.367
Revision (TSX:RME) Normalized

Upward Rocky Mountain Dealerships, Inc. Macquarie Research EPS FY 2010 1.254 1.254
Revision (TSX:RME) Normalized

Downward Morneau Sobeco Income Fund Scotia Capital EPS FY 2010 0.413 0.41
Revision (TSX:MSI.UN) Normalized

Upward Axia NetMedia Corp. (TSX:AXX) Macquarie Research EPS FQ4 2010 0.006 0.006
Revision Normalized

Downward Axia NetMedia Corp. (TSX:AXX) Macquarie Research EPS FY 2010 0.035 0.034
Revision Normalized

Initiation of Rocky Mountain Dealerships, Inc. Canaccord Genuity EPS FQ2 2010 0.372 0.367
Coverage (TSX:RME) Normalized

Upward Rocky Mountain Dealerships, Inc. Canaccord Genuity EPS FY 2010 1.249 1.254
Revision (TSX:RME) Normalized

Upward Rocky Mountain Dealerships, Inc. RBC Capital Markets EPS FQ2 2010 0.367 0.372
Revision (TSX:RME) Normalized

Upward Rocky Mountain Dealerships, Inc. RBC Capital Markets EPS FY 2010 1.247 1.249
Revision (TSX:RME) Normalized

Upward Transition Therapeutics Inc. RBC Capital Markets EPS FQ4 2010 -0.275 -0.258
Revision (TSX:TTH) Normalized

Upward Transition Therapeutics Inc. RBC Capital Markets EPS FY 2010 -0.984 -0.978
Revision (TSX:TTH) Normalized
May 19, 2010

Initiation of Tucows Inc. (AMEX:TCX) Mackie Research EPS FQ2 2010 0.01 0.01
Coverage Capital Corporation Normalized

Downward ZCL Composites Inc. (TSX:ZCL) Versant Partners Inc. EPS FY 2010 0.335 0.334
Revision Normalized

Downward Open Text Corp. (NasdaqGS:OTEX) RBC Capital Markets EPS FY 2010 3.125 3.119
Revision Normalized

Initiation of Rocky Mountain Dealerships, Inc. PI Financial Corp. EPS FQ2 2010 0.355 0.367
Caseridge TechSys DealBook

Coverage (TSX:RME) Normalized

Downward Rocky Mountain Dealerships, Inc. PI Financial Corp. EPS FY 2010 1.286 1.247
Revision (TSX:RME) Normalized

Upward Paladin Labs Inc. (TSX:PLB) RBC Capital Markets EPS FY 2010 0.767 0.771
Revision Normalized

Initiation of Carmanah Technologies Corp. Salman Partners Inc. EPS FQ2 2010 0.005 -0.005
Coverage (TSX:CMH) Normalized

Upward Carmanah Technologies Corp. Salman Partners Inc. EPS FY 2010 0.002 0.004
Revision (TSX:CMH) Normalized

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Downward Hemisphere GPS Inc (TSX:HEM) Dundee Securities EPS FY 2010 0.005 0.003
Revision Corporation Normalized

Initiation of Armtec Infrastructure Income Fund M Partners Inc. EPS FQ2 2010 0.764 0.755
Coverage (TSX:ARF.UN) Normalized

Initiation of Armtec Infrastructure Income Fund M Partners Inc. EPS FY 2010 1.954 1.965
Coverage (TSX:ARF.UN) Normalized

Upward Hemisphere GPS Inc (TSX:HEM) Mackie Research EPS FQ2 2010 0.023 0.025
Revision Capital Corporation Normalized

Downward GENIVAR Income Fund Desjardins Securities EPS FY 2010 2.11 2.104
Revision (TSX:GNV.UN) Inc. Normalized

Downward GENIVAR Income Fund Laurentian Bank EPS FQ2 2010 0.57 0.558
Revision (TSX:GNV.UN) Securities, Inc. Normalized

Downward GENIVAR Income Fund Laurentian Bank EPS FY 2010 2.126 2.11
Revision (TSX:GNV.UN) Securities, Inc. Normalized

Downward GENIVAR Income Fund TD Newcrest Capital EPS FY 2010 2.136 2.126

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Revision (TSX:GNV.UN) Inc. Normalized

Downward DragonWave Inc. (TSX:DWI) TD Newcrest Capital EPS FQ1 2011 0.253 0.245
Revision Inc. Normalized

Downward DragonWave Inc. (TSX:DWI) TD Newcrest Capital EPS FY 2011 0.791 0.771
Revision Inc. Normalized

Downward DragonWave Inc. (TSX:DWI) Scotia Capital EPS FQ1 2011 0.265 0.253
Revision Normalized

Downward DragonWave Inc. (TSX:DWI) Scotia Capital EPS FY 2011 0.823 0.79
Revision Normalized

Initiation of Softchoice Corp. (TSX:SO) Raymond James Ltd. EPS FQ2 2010 0.477 0.452
Coverage Normalized

F: 416-915-3177
Downward DragonWave Inc. (TSX:DWI) Raymond James Ltd. EPS FQ1 2011 0.266 0.265
Revision Normalized

Downward DragonWave Inc. (TSX:DWI) Raymond James Ltd. EPS FY 2011 0.833 0.823
Revision Normalized

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 Caseridge TechSys Index Component Summary as at May 14, 2010
Caseridge TechSys Universe Summary of Component Companies

Companies in Universe: 250

(Equal Weighted) Figures are LTM on a Rolling Basis (except as noted)
Avg. Market Cap: $143,182 ▲ (3.01%)
Average Date of the Trailing Financials January 18, 2010 ▲(15 days)
Avg. Cash: 24,579▼ (0.22%)
Avg. Debt: 46,123 ▲ (1.14%)
Avg. Enterprise Value: 163,674▲ (2.96%)
Avg. Revenue: 122,417 ▲ (1.38%)
Avg. Gross Profit 39,641 ▲ (0.46%)
Avg. Cash Flow: 7,240▲ (10.77%)
Gross Margin %: 44.03% ▼ (1.30%)
Gross Profit Growth Rate 1.79% ▲ (54.4%)
VALUATION
EV/Revenue 1.79▲
EV/Gross Profit 4.20▲
Gross Margin Multiple (LQA) 1.28▲
Price/Cash Flow: 14.29▲
Notes: 1 All figures are based on value weighted averages, excluding the high/low
outliers.
2 Percentages and Multiples are based on the averages of the individual
components and not on the averages of the global numbers.
3 Note that the universe is not static and changes over time.
4 “Cash Flow” is CGBO before working capital changes.
5 Individual GMM figures are capped at 3X for the purposes of calculating the
global GMM.
6 All dollar figures are in Canadian dollars and in thousands.
May 19, 2010
Caseridge TechSys DealBook

Caseridge Capital Corporation 100 King Street West, Suite 5700, Toronto, M5X 1C7
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 M ARKET S ENTIMENT C ASERIDGE T ECH S YS U NIVERSE

58%
57% 57%
55%

www.caseridge.com
50%
52% 50% 52%
50%
49%
48%
46%
47%
43%
42%

38% 38% 40% 38%

36%
35%
34%

F: 416-915-3177
33% 36%

31%
29%

27%

22%
17%

17%

P: 416-915-4142
15%

14% 13%
11% 11% 11%
10% 9%
10%
7%
Caseridge Capital Corporation |

30-Apr-09 31-May-09 30-Jun-09 31-Jul-09 31-Aug-09 30-Sep-09 31-Oct-09 30-Nov-09 31-Dec-09 31-Jan-10 28-Feb-10 31-Mar-10 30-Apr-10

Bullish sentiment in the Caseridge TechSys Index continues its decline with only 22% of the companies in
our 250 company Index listed as Bullish. Neutral sentiment dropped to 52% as investors remain by and large
on the sidelines while Bearish sentiment popped up to 26% from 17% last month. The 24-week dashed trend
lines show an increasing level of Bearish sentiment combined with declining Bullish and flat Neutral levels.
Bearish and Bullish sentiments’ have moved to levels last seen in the first quarter of 2009.

adamou@caseridge.com P: 416-915-4142 F: 416-915-3177 10

 Caseridge GMM Tracking and GP Growth Trends

0.1 1.40

1.31 1.31
1.28
0.08 1.28
1.26
1.26 1.29
1.20
1.24 1.20
1.22 1.23
1.14
0.06
1.13 1.13
1.10 1.13
5.44%
1.02 1.08
0.04 3.89%
1.05 1.00
1.04
3.82%
0.96
0.99

0.02

0.80
0

-0.02
0.60
-3.17%

-0.04
-4.54%

LQA/LTM
-5.66% 0.40
-0.06
NQA GMM

-6.43%
GMM
May 19, 2010

-0.08

-7.85% 0.20
-8.08%

-0.1
Caseridge TechSys DealBook

-0.12 0.00

The Gross Margin Multiple (in purple) (“GMM”) increased to 1.28 from 1.22 in the previous week as reported gross profit
results continue to disappoint. The NQA GMM, which is based on analyst consensus estimates for gross profits in the “next
quarter”, declined to 1.13 from 1.20 in the previous week. The annualized Gross Profit Growth rate (in yellow) took another
nose dive as first quarter results continue to disappoint moving to a negative growth rate of 4.5% This indicator is based on a
“run rate” measured as LQA gross profits / LTM gross profits. This implies an annualized decline in gross profits of about 20%
per year vs. an implied growth rate of about 20% priced in to the market (according to our model). Clearly there is something
“out of whack” in these figures. We are very cautious at present and recommend that investors maintain a strong cash balance
by waiting on the sidelines while these numbers shake themselves out.

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Caseridge Canadian TechSys Capital Market Summary (Last 3 Months)

Recent Transaction Statistics

Announced Deals by Sector in the Past Year (LTM) Announced Transactions by Region in the Past Year (LTM)

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Merger/Acquisition Transactions (Last 3 Months)
Announced Size
Date Closed Date Target Buyer/Investors ($mm)
May-13-2010 - Matrikon Inc. (TSX:MTK) Honeywell International Inc. (NYSE:HON) 138.98
May-13-2010 May-13-2010 Q Group PLC Lingo Media Corporation (TSXV:LM) -
May-12-2010 May-12-2010 Bombay Stock Exchange Limited Urbana Corp. (TSX:URB) 2.72
May-6-2010 May-6-2010 Integrated Media Solutions, LLC MDC Partners Inc. (TSX:MDZ.A) 32.67
May-6-2010 - Stanley, Inc. (NYSE:SXE) CGI Group, Inc. (TSX:GIB.A) 1,078.67
May-5-2010 - Mood Media S.A. Fluid Music Canada, Inc. (TSX:FMN) 205.91

F: 416-915-3177
May-4-2010 May-4-2010 Allison & Partners MDC Partners Inc. (TSX:MDZ.A) -
May-3-2010 May-3-2010 BEARDEN Engineering Consultants Ltd. and Beaubien GENIVAR Income Fund (TSX:GNV.UN) -
Glover Maskell Engineering
May-3-2010 May-13-2010 Botanutric de Mexico SA de CV, Certain Assets Immunotec Inc. (TSXV:IMM) 0.70
May-3-2010 - Chicago Board Options Exchange, Inc. Urbana Corp. (TSX:URB) 2.43
Apr-30-2010 Apr-30-2010 BioMS Medical Corp. (TSX:MS) -
Apr-30-2010 Apr-30-2010 Exeltech Canada Inc. Pemco World Air Services, Inc. 1.60
Apr-30-2010 - Hangar at 1200 Pitfield Boulevard, Ville Saint-Laurent -
Apr-30-2010 Apr-30-2010 TetrES Consultants Inc. Stantec Inc. (TSX:STN) -
Apr-29-2010 Apr-29-2010 Mepu Oy Ag Growth International Inc. (TSX:AFN) 11.63

P: 416-915-4142
Apr-26-2010 - ACI ecotec Gmbh & Co. KG Day4 Energy Inc. (TSX:DFE) 7.56
Apr-26-2010 - Burntsand Inc. (TSX:BRT) Open Text Corp. (NasdaqGS:OTEX) 10.98
Apr-20-2010 Apr-20-2010 Imanet Descartes Systems Group Inc. (TSX:DSG) 6.01
Apr-15-2010 Apr-15-2010 Routes AstroEngineering Ltd. COM DEV International Ltd. (TSX:CDV) 1.50
Apr-15-2010 - Teledata Networks Ltd. Enablence Technologies Inc. (TSXV:ENA) 50.00
Apr-8-2010 - Sure-Gro Inc. Premier Tech Ltd. -
Apr-7-2010 Apr-7-2010 Phoenix Technologies Ltd., FailSafe and Freeze Anti-Theft Absolute Software Corporation (TSX:ABT) 6.88
Assets
Caseridge Capital Corporation |

Apr-1-2010 - AlarmForce Industries Inc. (TSX:AF) Investmentaktiengesellschaft für 13.09

langfristige Investoren TGV
Apr-1-2010 Apr-1-2010 Mettoni Limited Enghouse Systems Ltd. (TSX:ESL) 22.81
Mar-31-2010 Apr-16-2010 Aperto Networks, Inc. Tranzeo Wireless Technologies Inc. -
(TSX:TZT)
Mar-31-2010 Mar-31-2010 CCS-Adplus, LLC MDC Partners Inc. (TSX:MDZ.A) -
Mar-31-2010 Mar-31-2010 Sloane & Company LLC MDC Partners Inc. (TSX:MDZ.A) -
Mar-26-2010 May-6-2010 Craig Wireless Systems Ltd., Canadian Spectrum Assets Inukshuk Wireless Inc. 77.77
Mar-26-2010 Mar-26-2010 ZT Plus Inc. BSST LLC -
Mar-25-2010 - sortimat Technology GmbH & Co. ATS Automation Tooling Systems Inc. 60.01
(TSX:ATA)
Mar-22-2010 Apr-7-2010 Haemacure Corp., Substantially All Assets Angiotech Pharmaceuticals Inc. -
(TSX:ANP)

adamou@caseridge.com P: 416-915-4142 F: 416-915-3177 12

 Merger/Acquisition Transactions (Last 3 Months)
Announced Size
Date Closed Date Target Buyer/Investors ($mm)
Mar-18-2010 Mar-18-2010 Via NET.WORKS USA Peer 1 Network Enterprises, Inc. -
(TSX:PIX)
Mar-15-2010 Mar-15-2010 Beijing Advanced VideoInfo Technology Co., Ltd. Cantronic Systems, Inc. (TSXV:CTS) 0.53
Mar-12-2010 Mar-12-2010 NetHawk Oyj EXFO Inc (TSX:EXF) 62.74
Mar-9-2010 Apr-5-2010 Majetel Canada Inc. Prestige Telecom, Inc. (TSXV:PR) 2.93
Mar-5-2010 Mar-5-2010 Team Enterprises, Inc. MDC Partners Inc. (TSX:MDZ.A) 19.00
Mar-2-2010 - Actiontop Electronics (ShenZhen) Co., Ltd. Cantronic Systems, Inc. (TSXV:CTS) 3.66
Mar-2-2010 Mar-2-2010 Gladstone plc (AIM:GLD) Constellation Software Inc. (TSX:CSU) 3.24
Mar-2-2010 May-11-2010 Gladstone plc (AIM:GLD) Constellation Software Inc. (TSX:CSU) 13.45
Mar-2-2010 Mar-2-2010 Thompson Rosemount Group Inc. GENIVAR Income Fund (TSX:GNV.UN) -
Mar-1-2010 Mar-1-2010 GCCL Contracting Limited Aecon Group Inc. (TSX:ARE) 4.21
Mar-1-2010 Mar-1-2010 Project Control Group Inc. Stantec Inc. (TSX:STN) -
Feb-28-2010 Feb-28-2010 72 Unit Apartment Complex in Winnipeg -
Feb-25-2010 Mar-3-2010 Eli Lilly & Co., Rights to Series of Preclinical Compounds Transition Therapeutics Inc. (TSX:TTH) 1.00
Feb-24-2010 Mar-3-2010 The Responsive Marketing Group Inc. Xentel DM Inc. (TSXV:XDM) 2.12
Feb-24-2010 Mar-3-2010 Xentel DM Inc. (TSXV:XDM) Argosy Partners Ltd.,Shotgun Fund II, 1.46
L.P.,Shotgun Fund III, L.P.

Private Placement Transactions (Last 3 Months)

Announced Size
Date Closed Date Target Buyer/Investors ($mm)
May-10-2010 - MDC Partners Inc. (TSX:MDZ.A) 67.60
May-6-2010 - ProSep Inc. (TSX:PRP) Cycle Capital Fund I, LP,Cycle Capital 3.56
Management,Fondaction
May-6-2010 - Timminco Limited (TSX:TIM) Amg Advanced Metallurgical Group N.V. 13.09
(ENXTAM:AMG)
May-5-2010 May-10-2010 Fluid Music Canada, Inc. (TSX:FMN) 58.45
Apr-29-2010 - Angelini Labopharm Angelini Group,Labopharm Inc. (TSX:DDS) 28.00
Apr-29-2010 - Critical Outcome Technologies Inc. (TSXV:COT) 0.35
Apr-27-2010 - Zoommed Inc. (TSXV:ZMD) 2.66
Apr-26-2010 Apr-26-2010 Wavefront Technology Solutions Inc. 21.91
(TSXV:WEE)
Apr-26-2010 - Zaio Corp. (TSXV:ZAO) 2.50
Apr-21-2010 Apr-21-2010 Healthscreen Solutions Inc. (TSXV:MDU) 1.30
Apr-7-2010 Apr-16-2010 Radiant Communications Corp. (TSXV:RCN) Maxam Capital Corp.,Maxam Opportunities Fund 4.14
(International) Limited Partnership,Maxam
Opportunities Fund Limited Partnership,Pender
May 19, 2010

Growth Fund (VCC) Inc.,PenderFund Capital

Management Ltd.
Apr-6-2010 Apr-21-2010 Nightingale Informatix Corporation (TSXV:NGH) 3.32
Apr-5-2010 - Mint Technology Corp. (TSXV:MIT) 0.75
Mar-31-2010 - Hosted Data Transaction Solutions Inc. 9.83
(TSX:HDX)
Mar-24-2010 Apr-1-2010 Webtech Wireless Inc. (TSX:WEW) 0.50
Mar-22-2010 - Extenway Solutions Inc. (TSXV:EY) 7.85
Caseridge TechSys DealBook

Mar-18-2010 Mar-31-2010 GLV, Inc. (TSX:GLV.A) Societe Generale de Financement du Quebec 42.86
Mar-17-2010 Apr-12-2010 Yangaroo Inc (TSXV:YOO) 0.82
Mar-16-2010 Mar-16-2010 Pharmaplan (Pty) Limited Paladin Labs Inc. (TSX:PLB) -
Mar-10-2010 Mar-17-2010 QHR Technologies Inc. (TSXV:QHR) 1.03
Mar-8-2010 Mar-8-2010 Mint Technology Corp. (TSXV:MIT) Cristomel Inc.,Glocap Management, Inc. 0.63
Mar-3-2010 Mar-3-2010 SpePharm Holding B.V. Paladin Labs Inc. (TSX:PLB) 5.49
Feb-26-2010 Feb-26-2010 Route1 Inc. (TSXV:ROI) 1.80
Feb-23-2010 Apr-20-2010 Catch the Wind, Ltd. (TSXV:CTW.S) 5.16
Feb-18-2010 Feb-18-2010 D-Box Technologies Inc. (TSXV:DBO.A) Caisse de Depot et Placement du Quebec,Societe 6.94
d'Investissements en Participations Inc.
Feb-16-2010 - Hosted Data Transaction Solutions Inc. 14.39
(TSX:HDX)

Caseridge Capital Corporation 100 King Street West, Suite 5700, Toronto, M5X 1C7
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 Private Placement Transactions (Last 3 Months)
Announced Size
Date Closed Date Target Buyer/Investors ($mm)
Feb-16-2010 - Timminco Limited (TSX:TIM) Strokkur Energy ehf 1.00

Buyback Transactions (Last 3 Months)

Announced Size
Date Closed Date Target ($mm)
May-13-2010 - Airboss of America Corp. (TSX:BOS) -
May-13-2010 - Omni-Lite Industries Canada Inc. (TSXV:OML) -
Apr-19-2010 - Chartwell Technology Inc. (TSX:CWH) -
Apr-15-2010 - PNI Digital Media Inc. (TSXV:PN) -
Apr-13-2010 - Peer 1 Network Enterprises, Inc. (TSX:PIX) -
Apr-9-2010 - Enghouse Systems Ltd. (TSX:ESL) -
Mar-31-2010 - Cyberplex Inc. (TSX:CX) -
Mar-22-2010 - Pason Systems Inc. (TSX:PSI) -

www.caseridge.com
Mar-19-2010 - Computer Modelling Group Ltd. (TSX:CMG) -
Mar-15-2010 - DragonWave Inc. (TSX:DWI) -
Mar-5-2010 - Clarke Inc. (TSX:CKI) -
Mar-5-2010 - Zedi, Inc. (TSXV:ZED) -
Mar-3-2010 - Mediagrif Interactive Technologies Inc. (TSX:MDF) -
Mar-1-2010 - Paladin Labs Inc. (TSX:PLB) -
Feb-17-2010 - Logibec Groupe Informatique Ltee (TSX:LGI) -
Feb-16-2010 - Tucows Inc. (AMEX:TCX) 10.00

Note: Canceled transactions are not included in the results. Market View constituent companies that are listed as the seller company are included in the
results.

F: 416-915-3177
P: 416-915-4142
Caseridge Capital Corporation |

adamou@caseridge.com P: 416-915-4142 F: 416-915-3177 14

 Weekly Events Calendar for the Week ending May 15, 2010
Date/Time Company Name / Subject Event
May-17-2010 MOSAID Technologies Inc. (TSX:MSD) End of Lock-Up Period
May-17-2010 9:00 AM CryptoLogic Limited (TSX:CRY) Shareholder/Analyst Call
May-17-2010 9:00 AM CryptoLogic Limited (TSX:CRY) Annual General Meeting
May-17-2010 11:00 AM Canadian Helicopters Income Fund (TSX:CHL.UN) Earnings Call
May-17-2010 12:00 PM Cyberplex Inc. (TSX:CX) Expected Earnings Release Date
May-17-2010 12:00 PM Total Energy Services Inc. (TSX:TOT) Annual General Meeting
May-17-2010 2:00 PM Ag Growth International Inc. (TSX:AFN) Earnings Call
May-17-2010 2:00 PM LAB Research, Inc. (TSX:LRI) Earnings Call
May-17-2010 2:00 PM Zongshen PEM Power Systems Inc. (TSX:ZPP) Earnings Call
May-17-2010 2:30 PM MDC Partners Inc. (TSX:MDZ.A) Conference Presentation Call
May-17-2010 4:30 PM Cyberplex Inc. (TSX:CX) Earnings Call
May-17-2010 5:00 PM LAB Research, Inc. (TSX:LRI) Expected Earnings Release Date
May-17-2010 5:30 PM Espial Group, Inc. (TSX:ESP) Earnings Call
May-18-2010 Hemisphere GPS Inc (TSX:HEM) Annual General Meeting
May-18-2010 Zedi, Inc. (TSXV:ZED) Expected Earnings Release Date
May-18-2010 10:00 AM JDS Uniphase Corp. (NasdaqGS:JDSU) Conference Presentation Call
May-18-2010 10:00 AM Timminco Limited (TSX:TIM) Annual General Meeting
May-18-2010 10:00 AM Vector Aerospace Corporation (TSX:RNO) Annual General Meeting
May-18-2010 1:00 PM Keg Royalties Income Fund (TSX:KEG.UN) Annual General Meeting
May-18-2010 2:00 PM Velan, Inc. (TSX:VLN) Expected Earnings Release Date
May-18-2010 4:00 PM Pure Technologies Ltd. (TSXV:PUR) Annual General Meeting
May-18-2010 4:00 PM Solium Capital Inc. (TSX:SUM) Annual General Meeting
May-18-2010 4:30 PM Velan, Inc. (TSX:VLN) Earnings Call
May-19-2010 10:45 AM Migao Corporation (TSX:MGO) Conference Presentation Call
May-19-2010 11:00 AM Zedi, Inc. (TSXV:ZED) Earnings Call
May-19-2010 11:20 AM JDS Uniphase Corp. (NasdaqGS:JDSU) Conference Presentation Call
May-19-2010 12:00 PM DirectCash Income Fund (TSX:DCI.UN) Annual General Meeting
May-19-2010 12:00 PM iWeb Group Inc. (TSXV:IWB) Expected Earnings Release Date
May-19-2010 12:30 PM CriticalControl Solutions Corp. (TSX:CCZ) Annual General Meeting
May-19-2010 1:00 PM Hyduke Energy Services Inc. (TSX:HYD) Annual General Meeting
May-19-2010 5:00 PM Sylogist Ltd. (TSXV:SYZ) Annual General Meeting
May-20-2010 Espial Group, Inc. (TSX:ESP) Annual General Meeting
May 19, 2010

May-20-2010 Pulse Seismic Inc. (TSX:PSD) Annual General Meeting

May-20-2010 3:00 AM Bridgewater Systems Corporation (TSX:BWC) Conference Presentation Call
May-20-2010 4:00 AM Route1 Inc. (TSXV:ROI) Expected Earnings Release Date
May-20-2010 10:00 AM Route1 Inc. (TSXV:ROI) Earnings Call
May-20-2010 11:00 AM iWeb Group Inc. (TSXV:IWB) Earnings Call
May-20-2010 12:30 PM Carmanah Technologies Corp. (TSX:CMH) Annual General Meeting
Caseridge TechSys DealBook

May-20-2010 2:00 PM Dynex Power Inc. (TSXV:DNX) Annual General Meeting

May-20-2010 2:00 PM Electrovaya Inc. (TSX:EFL) Conference Presentation Call
May-20-2010 4:00 PM AeroMechanical Services Ltd. (TSXV:AMA) Annual General Meeting
May-20-2010 6:00 PM McCoy Corp. (TSX:MCB) Annual General Meeting
May-20-2010 6:00 PM Sierra Wireless Inc. (TSX:SW) Annual General Meeting

Caseridge Capital Corporation 100 King Street West, Suite 5700, Toronto, M5X 1C7
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Historical Equity Pricing Data supplied by Capital IQ is licensed by FTSE International Limited to publish the FTSE

Note that the opinions in this report are solely those of the author. The information in this report is gathered from various information
provides that we believe to be reliable. Material errors or omissions are unintentional, and corrections may be forwarded to the author for
correction in a subsequent report. This report is intended only for sophisticated and accredited investors, the recommendations made should
not be acted upon by investors without proper advice and consultation with their investment advisor. Caseridge is not a member of the
Investment Industry Regulatory Organization of Canada (IIROC) or of the Toronto Stock Exchange. Caseridge is registered as an Exempt
Market Dealer in Ontario.

This message and any attached or linked material, is for information purposes only, and does not constitute an opinion, advice or a
recommendation regarding any securities referred to therein. Information in this message or any attached or linked material relating to an
offering of securities should be read in conjunction with the prospectus or other offering document for those securities. Caseridge Capital
provides corporate finance advisory services in the areas of new issues, private placements, mergers, acquisitions, valuations and strategic
advisory services.

Caseridge does not directly or indirectly own shares in the companies named in this report, however independently managed mutual funds or
other investment vehicles that may be owned by the author or by Caseridge employees may take positions in companies named in this
report.

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P: 416-915-4142
Caseridge Capital Corporation |

adamou@caseridge.com P: 416-915-4142 F: 416-915-3177 16