MONTRÉAL (BRAIN) — Argon 18 has received a capital infusion from Business Development Bank of Canada Capital and the Fonds régionaux de Solidarité FTQ, the Quebec company announced. Gervais Rioux, founding president of Argon 18, declined to comment on the exact loan amount, only saying it was "many hundred thousands of dollars" that will be used to fund future growth.
"We export to more than 60 countries. Our company is growing fast so we needed capital," Rioux told BRAIN, adding that he and his brother remain sole owners in the company. "The investment will go toward business development, R&D, and used across all departments to bring more stability as we grow."
Argon 18 took over U.S. distribution of its bikes last fall from Sinclair Imports. The company also hired additional R&D and sales staff at its Montreal headquarters, which have grown from 14,000 square feet to 20,000 square feet in the past two years. The company also recently bought a new ERP system and updated its website, both of which required a huge investment.
"We expect to grow between 20 to 30 percent and have received a lot of orders for 2016," Rioux added. "Every market at the moment is growing. Especially now we have a team, which will be in the Tour de France. That was a big step for us and brings a lot of confidence to the market with dealers and distributors. Now we have worldwide visibility with the biggest event in the world."
The bike brand is co-title sponsor of the German Bora-Argon 18 team. This year marks the first time Argon 18 has had a team in the Tour de France. The team is also racing in the Grands Prix Cyclists de Quebec et de Montréal, and has participated in the Tour du Qatar, Giro Del Trentino and Bayern-Rundfahrt.
Argon 18 has 35 employees in Quebec; most work at its Montréal headquarters.
