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MTI Raising $20M

Tustin-based MTI Technology Corp. said Monday it would raise $20 million in financing through a private placement led by Boston-based investment firm Advent International Corp.

The money will be used to support operations and growth, among other general corporate purposes, the company said.

MTI sells data managment software from EMC Corp., which also is an investor in the company.

“We are very pleased with Advent’s continued support of MTI and we look forward to strengthening an already strong partnership,” said Thomas Raimondi, MTI’s chief executive. “With Advent’s continued strategic and financial support, we believe we are well positioned to focus on improving the financial metrics of our business within our growth strategy, and ultimately, driving shareholder value.”

It’s been an a tough year for MTI.

Operating losses grew to $2.1 million in the quarter ended July 2, up from $1.7 million in the same quarter a year earlier. That was despite a 50% increase in revenue to $39.3 million.

In March, the company lost three board members amid a battle for control of Lindon, Utah-based Canopy Group Inc., the investment company started by former Novell Inc. chief executive Ray Noorda.

Canopy is MTI’s biggest shareholder at about 40% of the company.

Two of the MTI directors resigned on March 10. The third, Huntington Beach’s Valerie Noorda Kreidel, Noorda’s daughter, shot herself on March 17, according to the Orange County Coroner.

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