TEXN threadster spills the beans............
I'm SPILLIN' THE BEANS on the next big "players" penny stock ready to TAKE
OFF!
From the "IKE"-files, the following is a copy of the "business plan" for 21st Century
Technologies(TEXN) released in August 1997 to prospective investors for 50 Units of
stock/warrants in a private placement(I did not participate).
It is abridged, with some degradation due to OCR scanning errors.
This report was released BEFORE the March 13, 1998 news reporting Jan-Feb 1998
orders for 166,209 PT Night Sights valued at $6 million AND the May 13,1998 news
that "a surge of new orders has inundated the factory."
TEXN is the thinking mans PLFM- a stock on the bottom with
breakthough world-class technology- but with REAL WORLD PROFIT-MAKING
APPLICATIONS, and competition restricted by all technology being patent protected,
and access limited by government regulation(2 year certification process for Tritium, the
component in TEXN's cash-cow PT Night Sights). Like PLFM, TEXN is likely to run
up to $2-$3 once it is discovered and PROFITABLE audited financials are released.
COULD GO MUCH HIGHER. Currently at .21 after 2 months of accumulation at
.16-.20.
TEXN's 2 subsidiaries: With REAL WORLD profits already being made as IWI is just
starting to grab a piece of the $250,000,000 plus Night Sight market, & TRIDENT is
ready to capitalize on the Los Alamos National Laboratory "Gripper" and "Underwater
Seal" technology and CREATE new $200,000,000 plus monopoly markets(just broke
the ice by selling 6 "Grippers" to the Australian Army for $5 grand a pop- May 13
news)- TEXN won't stay under $1 much longer, and WON'T end up on "stinky stock"
lists either!
Due to the length of the following summary, please DO NOT post on this
thread, but leave all posting to the original TEXN thread.
EXECUTIVE SUMMARY
21st Century Technologies, Inc. (the "Company"), 2513 East Loop 820 North, Fort
Worth, TX 76118 USA (1-800-334-3573), is a public company organized under the
laws of the State of Nevada. The Company went puhlic in 1984 when it merged with a
public shell and commenced business. The Company is a high technology holding
company with a worldwide market for its trade mark line of tritium enhanced gun sights,
patented Gripper and Underwater Scal magnetic technologies. The Company's
subsidiaries are Innovative Weaponry Incorporated ("IWI") and Trident Technologies
Corporation ("TRIDENT'") . A third subsidiary Trade Partners International. Inc
("TPI")facilitated technology transfer to TRIDENT and is currently inactive.
THE COMPANY
A. MISSION STATEMENT
The Company's strategic objective is to maximize market penetration with a view
towards the generation of present income. In order to accomplish this objective, the
Company intends on engaging in a highly aggressive sales program. The key ingredients
of the sales program will be (1) a direct sales team: (2) joint venture partners (3)industry
networking and referrals; and (4) trade shows, printed media, and a world wide internet
site to establish name and product recognition. With the finest quality tritium night sights
available, the Company's marketing plan for IWI is to stress its cutting edge technology
and superior performance. To date, the IWI night sights have been made available as an
"option" to be purchased after the
sale of a suitable handgun has been made. Through product identification and
awareness, IWI will encourage both the consumer and retailer to make its night sights
not an option but a key component to a handgun purchase. IWI is exploring
relationships with handgun mentrfacturers for a specialty line of handguns featuring its
night sight technology.
A key ingredient in the Company's marketing plan fot TRIDENT is to
incorporate the increased awareness in the world to maritime ecology and pro-active
plans for the prevention of disasters using the Underwater Seal and Fly Away Disaster
Team. In this regard, the Company will work with the maritime industry to show them
how accident prevention on the high seas is good business. Further, since 90% of all
maritime accidents occur in or near deep sea ports, the Company will actively promote
its philosophy with foreign countries and their respective maritime authorities. The
leakage from hull damage of vessels on the high seas or in sea ports presents an
ecological danger
that can be controlled.
B. Legal Business Description
The shares of the Company are listed on the National Association of Securities Dealer's
Automatic Quotation (the "NASDAQ") over-the-counter ("OTC'") electronic bulletin
board under the symbol "TEXN". The Company has 100,000,000 authorized common
voting shares. (Current estimated outstanding 19 million outstanding, 9 million float
per March 13, 1998 news release)
No warrants and options are outstanding. The Company has no other series of shares
other than common shares and has not issued any debt instruments to date. Trading in
the Company's shares may be characterized as "light" in the 10,000 to 30,000 shares
traded per day with periods of non-trading . The price per share is currently quoted at
between $0.10 and $0.12 which is reflective of the Company's sales figures for 1996.
However, with an increase of sales in the first 8 months of 1997 of over 134.2% as
compared to the last 12 months
ended December 31, 1996, Management believes that market interest in its shares will
dramatically increase.
In conjunction with this plan, the Company has authorized the issuance of $2,500,000 in
Senior Notes due December 31, 2002 with per annum interest paid at 2% over the
prime rate quoted by the Chase Manhattan Bank in New York, together with attached
warrants for the purchase of 5,000,000 shares of the Company at a price based upon
80% of the closing price of the shares as listed on the NASDAQ on the date
of exersize(as defined) or $1.75 whichever is greater.
The Senior Notes may be puchased in minimum traunches of $50,000 each of which
will compromise One Unit. A total of 50 Units will be offered and sold to qualified
investors pursuant to Section 4(2) of the Securities Exchange Act or 1933 and
Regulation D promulgated
thereunder. Each unit having an attached warrant for the purchase of 50,000 shares of
the Company. Upon exersize of the warrants, the warrant-holders will in the aggregate
own less than 9.9% of the Company and, therefore, will not have to report their
holdings with
the Securities Exchange Commission in accordance with its rules and regulations.
C. PHYSICAL PLANT
We have approximately 3,000 square feet of executive office space and an additional
4,000 square feet of factory space. Our current capacity is 7,000 PT Night Sights per
month. When we exceed this we will have to increase our overhead by $230,000 per
year principally by hiring additional employees. When we increase our PT Night Sights
to 15,000 per month, we would have to increase our overhead and equipment by
approximately $75,000. We believe the first increase will occur in 12
months and the second increase to occur in 36 months. We own our manufacturing
equipment which is valued at $300,000-400,000 as
set up in our plant.
D. TECHNOLOGY
The Company's technology is both proprietary, trade secret protected and patented
with the Uniled States Patent Office. Further, the use of tritium is highly regulated by the
United States Nuclear Regulatory Commission and IWI has received a governmental
license in connection with the importation of raw encapsulated tritium and use of tritium
in the United States. The NRC licensing takes about two years to complete
and no other companies are believed to have begun the licensing process. Accordingly,
IWI enjoys a competitive advantage over non-licensee's. The Company plans to protect
and exploit its proprietary core technology the Night Sight, Gripper and Sea Patch. It
will rely on a combination of copyright, trademark and trade secret laws, and
contractual provisions to protect its intellectual property rights in its products. The
Company currently hold patents for all its techniques.
1. TRITIUM NIGHT SIGHTS
The principal praduct of IWI consists of a gun night sight which is
identifiable by radio luminescent tritium capsules installed into the front and rear sights.
These sights are a tremendous aid in delivery of precise and accurate fire at night and in
low light conditions. The P-T Night Sights are fast becoming the industry's standard in a
business where no substitute for quality exists. They are an ideal and creative solution
for the military, sportsmen, law enforcement and
government. Knowing that available systems were inadequate anrl that 66% of all
shootings involving police occur at night and in low light conditions. IWI set out to
develop a new generation of high performance night sights. PT Night Sights were
designed and tested in conjunction with representatives of law enforcement and federal
agencies who depend on precision products P-T Night Sights increase night fire
accuracy by as much as 86%, as evaluated by members of the Los Angeles Police
Department.
2. GRIPPER
The Gripper was invented at the world famous Los Alamos National Laboratory
("LANL") at the request of the United States Department of Defense. The technology
transfer LANL to TRIDENT was facilitated through TPI. The founder and president of
TPI is Dr. Thomas E. Murphy. Dr. Murphy's background includes extensive work and
experience in the field of "special operations". Dr. Murphy is a recognised national
expert in the field of special operations, paramilitary, and counter terrorist operations
and activities. TRIDENT holds an Exclusive worldwide, all applications license to
commercially exploit the technology. The Grippers are "worn" on hands and feet to
enable the user to climb any vertical, or traverse any steel surfuce. It is a lightweight
magnetic device (each Gripper weighs only 1.5 pounds) that attaches to any
ferromagnetic material-iron, steel, or their alloys. It fastens smoothly to a surface and
can be attached or detached with only one
hand or foot. Using four Gnppers, the user can climb a vertical surface, releasing and
repositioning the Grippers as he ascends. Wearing Grippers, a person can move up,
down, or sideways with relative ease. Grippers enable the user to:
1. bridge inspection 2. tank inspection 3. underwater welding on ships hulls 4.
underwater inspection of off-shore oil rigs 5. structural support towers 6. ships hull
inspections 7. coating inspections 8. emergency repairs on ship's hulls, etc.
It is believed that the Gripper technology is unique and without commercial competition
at this time There are a wide range of potential applications for this technology from the
military and special operations groups worldwide to the commercial sector including
areas such as bridge inspection, tank inspection, underwater welding on ship's hullls,
underwater inspection of off-shore oil rigs & structural support towers, ship's hull
inspections, coating inspections, emergency repairs on ship's hulls, etc. Further,
based on commercial response to this technology to date, it is believed that numerous
additional applications will evolve as the technology penetrates initial market areas.
3. UNDER WATER SEAL
The under Water Seal or Sea Patch is under developmental license from LANL. The
technology is based on a patented magnetic-hydraulic means of implementing
emergency hull repairs to ships involved in
accidents resulting in hull tears posing environmental hazards.
This technology poses a radically new approach to
resolving a serious worldwide problem having high public
visibility due to the extensive media focus on events such as the
Exxon Valdez. This technology utilizes certain aspects of the "Gripper'' magnetic pack
and cam-on-cam-off technology to attach a compression patch to tears/punctures in a
ship's hull above or below the waterline. TRIDENT'S engineers working with the
inventor of the
technology have significantly advancad the technology, as well as,
having prototyped and tested the underlying concepts involved.
E. MARKET ANALYSIS
1. THE IWI SUBSIDIARY
The Company's IWI subsidiary is a highly regarded manufacturer of tritium products
available in night sights and other "night seeing" sights in the weapons industry. Both
military and private gun owners currently purchase tritium based night sights with
additional applications to other industries which is under research and development. The
IWI tritium products are of the finest quality in the industry featunng color options with
the front sight brighter than the rear sights thereby enhancing low light sighting. Chosen
by world famous gun manufacturers as their UEM gun sight of choice, the IWI tritium
products are industry leaders used by all branches of the United States military,
including the Navy Seal Team and Delta Forces, United States Customs, United States
Drug Enforcement, United States Department of Fish and Game, and state and local
police departments nationwide.
GROWTH OF NIGHT SIGHTS
The Company believes that the market for IWI's line of tritium products will track the
40% growth in the public sector purchase of handguns in the United States. According
to the Association of Federally Licensed Firearm Dealers (the "AFLFD") an estimated 5
million handguns will be sold in the United States in 1997. Of these over 70% were
sized .38 caIiber or higher which are most suitable for the tritium night sights. Since
30-40% of all .38 caliber handguns or higher are being equipped with night sights the
annual market value of night sights is in excess of $150,000,000 in the United States
with
worldwide market value in excess of $200,000,000. Further, as the popularity of tritium
night sights grows the more than 13.1 million hand guns .38 caliber and higher which
have been purchased in the last ten years represent potential sales in excess of
$100,000.000. In the opinion of management, IWI's market share show grow to 30%
of
the estimated market value for tritium night sights worldwide if it is able to implement its
aggressive marketing plan.
Monthly sales of PT Night Sights has been increasing during the past 19 months as
follows:
Jan-Dec 1996: 5509 Sets sold.
Jan-Aug 1997: 12903 Sets sold
2. THE TRIDENT SUBSIDIARY
The Company's TRIDENT products are based on patented magnetic technology
acquired from the United States government. The Company has estimated the potential
market for the Gripper technology to be in excess of $150,000,000 worldwide.
GROWTH OF GRIPPER AND UNDERWATER SEAL
The maritime industry represents the largest market for the Underwater Seal technology.
In conjunction with maritime insurance carriers, TRIDENT will he able to offer
purchasers of its technology a 20% saving on maritime casualty insurance premiums.
This is based upon a representation of an international insurance carrier based in
London, England who believe that the Underwater Seal will drastically reduce
claims made under its casualty policies.
Since the maritime insurance industry writes policies in excess of $1 billion per year the
20% insurance savings results in hundreds of millions being saved on premiums. In order
to quaify for the 20% savings, policy holders will have to demonstrate that they
have purchased the Underwater Seal technology with Certification fiom TRIDENT. The
cost of purchasing the Underwater Seal technology outright from TRIDENT is
estimated at $50,000.00 per vessel based on a one-time acquisition basis. However,
policy holders will have the option of purchasing service contracts from TRIDENT
which will include the cost of the Underwater Seals themselves plus a high sea's rescue
rider. The rider will include an insurance component paid to the maritime insurer by the
vessel owner for up to a $1 million dollar rescue expense reimbursement.
The rescue will be provided for by TRIDENT's Fly Away Team which will headed-up
by former United States Navy Seals. 'The Fly Away' will be based in San Diego,CA
and will be deployed anywhere in the world within 24hrs. notice of a high sea's distress.
With the insurance rider paying the costs of rescue, the Fly Away Team will provide the
necessary equipment and expertise to deploy the Underwater Seal at anytime and
anyplace in the world.
In the opinion of management, TRIDENT has no competition in the maritime industry. In
a period of less than three years, TRIDENT believes that it will have sales in excess of
$25,000,000 which includes both the sale of the Underwater Seal and service
contracts worldwide. In order to maximize exposure to the maritime industry,
TRIDENT is considering joint-venture agreements with established maritime salvage
operators in major shipping ports throughout the world. Each joint-venture partner will
enjoy
geographic exclusivity with profits being shared on a per vessel basis. In order to qualify
as a joint venture partner, TRIDENT will consider such factors as size of operation,
facilities, geographic location, reputation and potential for growth TRIDENT will launch
its insurance and joint venture program with the maritime
industry at a trade show scheduled for November 1997 in London, England. At the
London trade show, TRIDENT will
- display the Gripper and Underwater Seal technology
- increase awareness in the maritime and insurance industries for the Gripper and
Underwater Seal
- meet with maritime insurers to increase policy holder demand
- add product outlets or others means of distribution
F. COMPETITIVE ANALYSIS
The Company's products are unique and distinctive in their respective product lines.
IWI is the only manufacture of the multi-colored 3 dot system and the innovative bar dot
configuration. Other manufactures produce an all green version that according to many
experts, can cause some confusion in the lining up of the sights. IWI is the only
manufacturer that provides complete custom work for a broad line of guns and offers a
15 year warranty on its products. Competitors offer only limited custom work and
warranties of 10-12 years. As for Trident's Gripper technology there are simply no
other
companies with similar technology or whose functionality is equal the patented
technology.
1. LIMITED COMPETITION
We define our market for IWI as composed of military, law enforcement, and private
gun industry. Both of these industries are multi-million dollar markets with unlimited
growth potential. Based upon its superior technology, the sale of the night sights should
dramatically increase over the competition if an aggressive marketing
campaign can be successfully launched. As far as TRIDENT'S GRIPPER and
Underwater Seal products their unique technology will result in tremendous sales growth
once the products are introduced into the marketplace. There is no current competition
for TRIDENT's products and none is expected to develop in the next five years. There
are two companies that compete with IWI in the night sight market.
Detroit-based TRIJICON, INC.
This company has most of the market share at the moment. It is one on the leading
suppliers of both fixed and adjustable sights for popular combat guns. However,
Trijicon produces only an all green version of the night sights. Its sights have 2 green
dots in the rear sight and one green dot in the front. Trijicon garners most of the market
share from established OEM relationships with most major gun manufacturers. Its sights
are the most expensive in the market with an average price point $20 higher than IWI's
price.
Atlanta-based HESCO, INC.
Hesco produces a night site called "Meprolight", which is the least expensive on the
market with and average price $20 00 less than IWI's. A number of gun shop owners
throughout the US mentioned that Meprolights are not as resilient and bright as the other
night sites available on the market. Like Trijicons sights, Meprolight is available only in
all-green with the same brightness from all three points.
2. COMPETITIVE STRATEGY
The IWI night sight has a competitive advantage becauue of our multi-colored 3 dot
system and the innovative bar dot configuration. Plus, we are the only manufacturer that
provides complete custom work for a broad line of guns and offers a 15 year warranty
on its products. IWI enjoys an OEM relationship with the world famous
German gun manufacturer Heckler and Koch Inc. and intends on developing other
OEM relationships that will expand consumer demand for its tritium technology. A
multimedia advertising campaign will promote the IWI PT Night Sights through the
following sources: Advertising in leading gun publications, Press Releases, Police and
security services Conference Seminars, Internet Promotion, Promotional Bundles to
existing gun owners, Trade Journal articles, Direct Mail, Workshops, Practice Ranges,
and Community Safety organizations.
G. PRODUCTS AND SERVICES
1. TRITIUM NIGHT SIGHTS
PT Night Sites represents a relatively new market segment for gun users which can be
used to help alleviate the poor level of accuracy in low light collditions that gun owners
are current experiencing. The PT Night Sights are fast becoming the industry's standard
in a business where no substitute for quality exists. They are an ideal and creative
solution for the military, sportsmen, law enforcement and government agencies.
Knowing that available systems were inadequate and that 66% of all shootings involving
police occur at night and in low light conditions. IWI, the manufacturer of PT Night
Sights set out to develop a new generation of high performance night sights. IWI has
expanded its market share under its new management team. The annual sales rate
currently exceeds $2 million. Customers include more than 100 government agencies
throughout the country. This client base
departments in some of the largest metropolilan areas such as Los
Angeles, Chicago, Philadelphia and Houston.
2. THE GRIPPER
The magnet based ''Griipper" technology was developed and patented by the Los
Alamos National Laboratory (LANL) specifically for the US Dept of Defense. Trident
holds an exclusive worldwide, all applications license to commercially exploit the
technology. The Gripper is a lightweight magnetic device (each Gripper weighs only 1.5
pounds) that attaches to any ferromagnetic material-iron, steel, or their alloys. It fastens
smoothly to a surface and can be attached or detached with only one hand or foot.
Grippers enable the user to inspect bridges, towers, smokestacks, storage tank's
interiors, and offshore oil rigs without recourse to fixed scaffolding.
It is believed that the Gripper technology is unique and without commercial competition
at this time. There are a Wide range of potential applications for this technology from the
military/special operations groups worldwide to the commercial sector.
The "Gripper" action uses a permanent magnet package about the size of an audio
cassette. This magnet package consists of two or three neodymium iron permanent
magnets "sandwiched" between low-carbon steel spacers. The device uses cams for
smoothly attaching and detaching the magnets. The frame linking these components is
made of anodized aluminum to minimize overall weight. Finally, a pointed stainless steel
dowel is located on the end of the frame to control slippage, minimize the magnets'
required strength and compensate for variable surface conditions (i.e. wet, painted
and/or oxidised surfaces).
Further, based on commercial response to this technology to date, it is believed that
numerous additional applications will evolve as the technology penetrates initial market
areas. The Gripper has been granted a patent from the U.S. Patent Office in
Washington,
D.C. under U.S. Patent No. 5,192,155 regarding "Magnetic Gripper Device" issued on
March 9, 1993. There have been no infringements on the patent to date and in the
opinion of Management none is expected given the complexity of the technology.
3. UNDERWATER SEAL
The Sea patch is under developmental license from LANL, relates to a patented
magnetic-hydraulic means of implementing emergency hull repairs to ships involved in
accidents resulting in hull tears posing environmanlal hazards. This technology poses a
radically new approach to resolving a serious worldwide problem having high public
visibility due to the extensive media focus on events such as the Exxon Valdez.
This technology utilizes certain aspects of the "Gripper" magnetic pack and cam on-
cam-off technology to attach a compression patch to tears/punctures in a ship's hull
above or below the waterline. Trident's engineers working with the inventor of the
technology have significantly advanced the technology as well as having prototyped and
tested. The tailored hardware packages have been envisioned and can now be
developed from the basis of Gripper technology and its associated hardware, in the
following commercial areas, to name a few:
- US Navy Seal Teams
- US Army Special Forces and Special Operatians Forces
- Police SWAT units
- Fire Departments
- Ship maintenance and Repair Facilities(Military and Commercial)
- Petroleum Storage industry |
