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Xtranet Systems Inc. OTC BB:(XTRA)
"Xtranet is a premier
provider of credit-card processing and risk management services, and stand
alone financial processing solutions to Internet Merchants and Offshore
Financial Institutions throughout the world. Having begun as a developer of
extranet systems, Xtranet has now moved into the front lines of E-commerce
by offering proprietary credit card processing services uniquely suited to
high volume Internet Merchants worldwide. Currently Xtranet is processing in excess of $25,000,000 in credit card
transactions per month for its family of onshore and
offshore banks. The DataBank Network has operations in the Caribbean,
Mexico, three offices in the United States, and will
soon be establishing DataBank offices in Europe and the United Kingdom.
In the third quarter of 1998, Xtranet processed $26,312,781 in Internet
Merchant credit card transactions, which is in line with
projected growth for the Company. In the fourth quarter of 1998, total
credit card processing increased 200% to $78,942,299 for 256 merchants, and
produced $485,552 in gross operating revenues. Operating revenues should
increase in the near future as systems integrations and start-up costs
decrease. Xtranet will continue to expand its list of Internet Merchants,
and continue to expand its gross credit-card processing volume. Most
importantly, with the continuing development of the Xtranet risk management
system, both their Internet merchants and the Company will continue to earn
increasing revenue on each processing dollar. Also, as the operations from
the four new Databanks come online, and new Databanks, financial
institutions and merchants are added to the Network, the Company should
experience even faster growth.
Company Profile: Xtranet is the creator, developer, and producer of online
Internet-based extranet systems and service applications. Through its
DataBank International Network, Xtranet is a provider of credit card
processing, e-commerce risk management services, and stand alone financial
processing systems, to offshore financial institutions and Internet, and
other Merchants. Each DataBankTM maintains a local relationship with a
local financial institution and local Internet and other Merchants. Xtranet
licenses its credit card processing systems and proprietary e-commerce risk
management services to each Databank, and may also own a minority interest
in each Databank. Specifics regarding the two main components of the
Xtranet structure are:
- Through the DataBank International Network, Xtranet targets Internet
Merchants, and other Merchants that require state of the art credit card
processing and risk management services for high volume e-commerce through
offshore Banks that previously were shut out of earning fees from credit
card processing. Xtranet offers secure solution for electronic e-commerce
transactions over the Internet. Banks in the Caribbean, Latin America, and
the Mediterranean have a strong desire to enter into this lucrative
business and consequently offer an excellent opportunity and potential for
the expansion of Xtranet's DataBank International Network.
- The DataBank System provides credit card processing and proprietary risk
management services to offshore banks and Internet and other merchants
worldwide. The technology behind this is a sophisticated computer-based
processing package which interfaces with the MAPP/EDS (now Global Payment
Systems), and is fully PS2000 compliant. The software has been thoroughly
tested and certified. Xtranet, through its DataBank International Network
has entered into credit card processing agreements with financial
institutions in North America and offshore. To continue to improve its
proprietary risk management services, Xtranet has entered into a joint
venture relationship with Entrabase, Inc. to continue to develop and expand
Xtranet's proprietary risk management system for e-commerce.
Why XtraNet Deserves Serious Investment Consideration:
- Poised to become a leader in E-commerce through its DataBank
International Network.
- Premier provider of credit-card processing and proprietary risk
management services, and stand alone financial processing solutions to
Internet Merchants and Offshore Banks throughout the world.
- Currently generating substantial revenue growth from operations that
exist in the Caribbean, Mexico, and offices in the United States.
- Potential of higher revenue growth after additional DataBank operations
go online in Bermuda, Europe and the United Kingdom, and as additional
financial institutions and high volume Internet Merchants are added to the
Network.
- Key Management with many years of experience in e-commerce, banking
relationships, regulatory requirements of offshore jurisdictions, and with
important knowledge of the technologies used in the credit card processing
industry.
- Increased productivity and worldwide acceptance in a variety of businesses.
- Development of key strategic partnerships.
Financial Projections:
1999 Processing Targets
Data Bank /Monthly Proc. Target /Month To Target /1999 Annual Proc.
Mexico /$20,000,000 /March 1999 /$220,000,000
USA /$15,000,000 /March 1999 /$150,000,000
Europe /$20,000,000 /June 1999 /$200,000,000
UK /$20,000,000 /August 1999 /$120,000,000
Caribbean /$20,000,000 /December 1998 /$240,000,000
The Company Projects Net After Tax Revenue in 1999 of $4,570,000, which is
approximately $0.50 Per Share.
Company History: On October 20, 1997, P.C. Development merged with Xtranet
Business Solutions, Inc., a privately held company incorporated in Nevada
on April 2, 1997, contemporaneously reincorporated in Nevada, and changed
its name to Xtranet Systems, Inc. (the "Company"). The Company has been
fully operational since April, 1997, as a developer and marketer of
Internet-based proprietary and third party extranet systems and services.
In an effort to combine its extranet systems technology with an emerging
Internet market, the Company recently acquired DataBank International, a
Nevada corporation and the proprietary DataBank credit card and risk
management systems.
Business: The Company will primarily focus upon the international marketing
of the DataBank System to offshore financial
institutions worldwide, and to high volume Internet Merchants. Through the
DataBank International Network, the Company intends to take advantage of
this expanding market by offering credit card processing services and
proprietary risk management services to offshore banks and to provide easy
to use e-commerce business solutions to merchants that are interested in
moving offshore. Recognizing the need for a more sophisticated approach to
credit card processing and e-commerce systems in offshore centers, Xtranet
has developed and acquired a range of technologies to support financial
institutions and merchants with their credit card and e-commerce processing
requirements.
Corporate Financials:
Exchange Listed OTC BB: XTRA
Shares Issued & Outstanding ~ 8.7 million
Shares Float ~ 3.9 million
Market Capitalization ~ $16 million
52-week Range $0.125 (low)- $2.03 (high)
Recent Price $1.63 (bid) - 1.81 (ask)
Industry Internet & E-commerce
Key Management:
- William L. Shaw, Chairman & CEO - Mr. Shaw is a principal shareholder and
founder of DataBank International and the developer of the proprietary
DataBank credit card processing system. Mr. Shaw is the former Chairman of
the Electronics Department at Pierce
College in Los Angeles, and the Managing Director of DataBank International
(Anguilla).
- Don Shaw, Director - Prior to joining DataGate International as its
president, Mr. Shaw was the General Manager of Power Manufacturing,
Inc., a high tech manufacturing facility located in Silicone Valley,
California. In his capacity as Director of DataBank (Nevada), he has gained
tremendous knowledge of the technologies used in the credit card processing
industry. He was instrumental in steering the company's sales efforts
towards having an offshore focus.
- Gary C. Davies, Director - Mr. Davies is currently the US Trustee for
Western Omni Trust, an international investment banking firm. He is
involved in the public securities markets, having participated in numerous
Initial Public Offerings, as well as, merger and acquisition activities.
Past clients have included Solitron Devices, Inc., General Instruments
Corp., Bendix Corp,. Greyhound Corp., Bliss & Laughlin Industries (AXIA,
Inc.) Gulf & Western.
- Eric C. Bronk, CFO, Corporate Secretary - Mr. Bronk has served as legal
and general counsel to numerous domestic and foreign enterprises and
has served as a board member on numerous public and private companies. Mr.
Bronk is currently the Chairman and President of Mezzanine Capital Ltd,
an international investment company trading on the Bermuda Stock Exchange.
Recent & Future Media Coverage: Xtranet has recently been featured by the
following noteworthy media coverage to increase public's awareness of the
magnitude of their business:
- Kostech Corp. has been retained by Xtranet to provide Internet based
Investor Relation Services beginning in late February 1999. Their website
will be located at: virtualir.com.
- NetGuide Magazine, August 1997 - Extranets are the extended intranets
connecting not only interpersonal, but select
customers, suppliers and strategic partners... Extranets are valuable new
weapons in the business arsenal. Organizations that learn how to harness
their power early and quickly will be the leaders into the next century...
- A Fax-Blast will be disseminated to numerous stock brokers in the U.S.
beginning February 8, 1999 -- click here
pennystockpicks.com;
Contacts:
Company: Investor Relations:
XtraNet Systems, Inc. Eric Chess Bronk
1516 Brookhollow Drive, Suite D Tel: (714) 430-9200
Santa Ana, California 92705 Fax: (714) 430-9210
Site: xtrasystems.com Email: mailto:echess@xbsinc.com
This info was provided in an e-mail by: www.pennystockpicks.com |
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