Sensing Opportunity: FOX-TEK

Imagine a fiber optic sensor so finely tuned – it could prevent major structural disasters from ever happening. To warn us that a highway overpass is in danger of collapse: well before visible signs of strain. To detect the millisecond that a remote oil pipeline begins to buckle and shift from ground movement – and notify field personnel in time to prevent a costly spill. To safely measure seismic aftershocks inside the walls of a tunnel. Or maintain the surface integrity of an immense hydroelectric dam. This amazing sensor technology not only exists. It was invented and developed right here in Ontario by photonics researcher, Rob Tennyson, with support from the Ontario Centres of Excellence (OCE). It goes to show: Take a great idea, introduce just the right combination of brainpower, guidance and timing – and it is entirely possible to bring your innovations to market. Just like FOX-TEK.

The FOX-TEK Sensor The latest generation of the FOX-TEK sensor employs pure optic fiber - using low coherence interferometry to detect the slightest change in temperature, loads or corrosion on virtually any structure. Designed to fit virtually any shape or format, a single wireless sensor unit can sense along an active gauge length or pathway from 10 cm to 100 m - far beyond the scope of traditional sensing systems. Don Morison adds: "We not only developed the sensor but also designed and built the monitoring instrument which provides the light for the sensor, reads the data modulation of the signal and actually sends the data out to a computer where it can be pulled into databases and graphs." FOX-TEK is actively targeting contracts in the oil and gas sector where infrastructure maintenance is critical and a major shutdown could shake world markets.

Lights. Action. Microscope.

The idea is key. Back in the late 90s, Tennyson was advancing a series of major breakthroughs at his lab at McMaster University. The diversity of his research caught the interest of two different OCE centres – each of which stepped in to offer support. The Centre for Materials and Manufacturing supplemented his research into rare earth elements while the Centre for Photonics helped to further his work in fiber optics.

Tennyson emerged from the lab with an impressive number of patented technologies. Keen to explore commercial prospects in telcom, he brainstormed with the OCE business development team to see which ideas held the most potential. Taking a good hard look at the market, OCE advised him to reposition his fiber optics technology towards sensors and structural monitoring. Tennyson agreed – a decision which proved critical as it allowed the fledgling company to survive the telcom bubble the very next year. This directional shift also meant that the Centre for Photonics took the lead to help the new venture take its critical first steps.

Making next happen.

The original concept was to uniquely merge laser and sensor technology,” recalls Don Morison, FOX-TEK’s chief of Design & Development. All systems were go for the new optic point sensor – but now the challenge was to create the start-up company.

This is where OCE could bring considerable expertise to the table – to help make that decisive shift from concept to FOX-TEK – Fiber Optic Systems Technology Inc. Before anything else, it is vital for any start-up to find the right entrepreneur. By tapping its extensive network, OCE was able to source American entrepreneur, Gary Jolly, to head up the new enterprise with Rob Tennyson as Chief Technical Officer.

Throughout the year 2000, OCE worked closely with the FOX-TEK entrepreneurial team to write a solid business and marketing plan and secure the all-important principal financing from Pinetree Capital. OCE also helped to assemble an advisory board. FOX-TEK’s Former Chairman of the Board, Gary Jolly remembers how it came about; “OCE played a key role. They provided the facilities, financial expertise and legal background that enabled us to grow from a start-up to a commercially viable company.”

That process was anything but straightforward. The OCE business development team stayed patiently with FOX-TEK through four rounds of research and two rounds of commercialization to get the project off the ground.

From R&D to IPO

All the persistence finally paid off. By October 2004, FOX-TEK marked its entry into the marketplace with an Initial Public Offering to raise $3M in capital. Trading on the TSX (Symbol: FOX), the company is now aggressively expanding the commercial potential of the FT optic sensor in the oil and gas sector – recently hiring new President and CEO Dr. Essam Zaghloul and by ramping up their international sales force.

Don Morison sees the greatest potential for future growth outside of North America – pointing out that, “there are hundreds of oil companies that can benefit from our technology. We’re knocking on a lot of doors and getting a lot of interest.” They are currently involved with oil and gas companies in Saudi Arabia with further interest coming from Mexico and even closer to home, in Calgary.

The work that lit up an Ontario research lab is now ready to take on the world: creating employment and opportunities on a global basis. Great ideas brought to light and then to market with help from OCE.