Despite the bursting of the technology bubble, Crocus Investment Fund hasn't given up on Manitoba's new economy.

The province's largest labour-sponsored fund announced it has invested $1 million in Novra Technologies Inc., a 20-person, Winnipeg-based telecommunications firm.

Novra specializes in broadband Internet applications using digital video broadcasting standards for satellite and terrestrial networks. Some of its uses include moving large files, such as newspapers, for printing, downloading movies from a satellite for broadcast in theatres, sending television signals for broadcast on mobile vehicles and video conferencing.

Manitoba Science and Technology Fund, one-quarter of which is owned by Crocus, is also participating, having invested $500,000 in Novra.

James Umlah, chief investment officer of Crocus, said he has no apprehension about investing in the telecommunications sector, which he said has become increasingly important as fewer people are choosing to fly for business since the September terrorist attacks.

"If people are not inclined to travel, there are more applications in written work, telephone calls and video conferencing. Anything you would send on a satellite network would be in (Novra's) sweetspot," he said in an interview.

"A year ago, the technology sector was overpriced. Now the whole sector has come down and we think there are tremendous opportunities."

Novra (NVI/CDNX), which raised $3.5 million from its initial public offering last June, is one of just a handful of publicly traded companies in the Crocus portfolio. Some of the others include Assante Corp., SLMsoft.com, and the Boyd Group.

Moe Barakat, Novra's president and CEO, said most of the Crocus funds would be earmarked for research and development.

"Under the current economic conditions, we have to build up enough cash so we can move without worrying about the immediate future," he said in an interview.

Barakat's resume includes having started IMT Communications Systems and SpectraWorks Inc., two Manitoba-based companies that were built up and sold in 1998 and 2000, respectively.

The Crocus investment isn't Barakat's first exposure to a labour-sponsored fund. ENSIS Growth Fund once had $2.25 million invested in SpectraWorks.

"Local shareholders are more understanding than those from outside the province who don't know the economic realities of Manitoba. Crocus are long-term investors, that's what we're looking for," Barakat said.

Umlah said Novra's shares were worth $1.30 a year ago but they have been trading recently in the 40 to 60 cent range. Crocus has also purchased a series of warrants at 50 cents each.

"We're buying the same company that is 70 per cent below where it was a year ago. We're looking at value and growth," he said, noting the warrants allow for a potential further investment of up to $1.5 million if the company performs well.

geoff.kirbyson@freepress.mb.ca