Here's some info from the Small Wonders Home page
tiac.net
RangeStar Telecommunications Ltd is named for the exciting product (the RangeStar antenna) of it's currently 51% owned US subsidiary RangeStar Inc. The
current interest was acquired for a $500,000 development stake that funded RangeStar through the prototype stage. The 49% balance can be acquired by the
parent for an additional $4.5 million to fund manufacture and marketing following success of the prototype.
Product: RangeStar is a proprietary antenna technology that increases the range of cellular telephones while extending battery charge life. Tests, including
those done by SRI International, show increases in RSSI (Received Signal Strength Indicator) of between 4.1 dB and 7.3 dB, on average, or between 60%
and 100% improvement. Power savings allow between 15 and 50 extra minutes of call time on a single charge. The significance here is that the increased
range is not achieved by increasing handset power, but by the antenna's utilization of ambient energy otherwise absorbed by the user. An important benefit is
that approximately 96% less electromagnetic energy is directed toward the users head and hand during use. While the health risks of radiation absorption have
yet to be conclusively and scientifically demonstrated, numerous million dollar lawsuits alleging damage have been filed against equipment providers.
Manufacturers would not wisely ignore any technology that offers safer operation in addition to greater efficiency and range.
Industry: Growth in US cellular usage has consistently outpaced projections, resulting in an estimated 28 million current subscribers, or one in ten Americans.
Continued growth both at home and worldwide (where current usage is less than one in one hundred) provides an optimum market for advanced cellular
products. In addition, growth in PCS, Personal Communications Services (digital voice, video, fax and data), with its higher bandwidth, and consequently
higher power requirements, will provide an even larger market for advanced wireless technology. Major telecom's project 200 million users by the turn of the
century.
Management: RangeStar Ltd is headed by John Reynolds, former Speaker of the House in British Columbia, as well as provincial Minister of the
Environment. RangeStar is run by Bill Luxon, whose extensive experience introducing new products and services includes American Educational Television
Network, (first satellite network for accredited continuing ed), Communications Development Corporation (graphics animation for TV broadcast) and
Vanguard (pro sports promotions for NFL, NHL, MLB).
Projections: Revenues will be derived both from licensing of antenna technology and manufacture of antennas as well as other wireless accessories ( neoprene
phone cases, extended life batteries, chargers, etc). The companies three year plan calls for US penetration of .5%, 1.5%, and 2%, with worldwide
penetration of 0%, .5%, and 1.9% for the respective years (based on 1994 US base and 1993 foreign base) with sales of 130,000 units, 700,000 units, and 1
million units. Depending on the mix of licensed to manufactured units, this should result in earnings ranges and EPS (with 11.5 million shares fully diluted)
for the three years as follows: year1: 2 to 5 million ($.17 to $.43) year2: 8 to 27 million ($.70 to $2.35) year3: 11 to 33 million, ($.96 to $2.75).
Current activity: The company is actively negotiating with several unnamed large international cellular producers, including a major Asian OEM for the first
license of its technology. The license could cover as many as 2 million units, and could be completed in the next 30 days.
Technical: Following the acquisition of RangeStar in November 1995, the stock resumed trading at C$1.50 and has traded between C$1.30 and its current
price around C$1.70, recently on very good volume. Near term announcements should move the price over C$3, with a year end target of C$5 to C$6 likely
following production, marketing and additional licenses. There is a possibility that the health benefits attributable to the product will accelerate both licensing
and revenue generation, and thus the stocks price.
* Information is obtained from sources deemed reliable but is not guaranteed as to completeness or accuracy, and should not be construed as an offer to buy or
sell any securities. Complete information should always be obtained directly from the company. |
