Alexander Haig interviewed the CEO of Newgold.com on his World Business Review TV Series this morning.
NGLD is reinventing itself as a dot.com incubator.
Here is some recent news:
Newgold Enters the $12 Billion Nutraceutical Industry
DALLAS, Jun 20, 2000 (BUSINESS WIRE) -- Newgold, Inc. (OTCBB: NGLD) announced
today the addition of eNutranet, Inc. to the company's portfolio of
Internet-based start-ups.
eNutranet is an e-commerce solution uniting the nutraceutical industry in the
use of the Internet as a communication, distribution, and commerce medium.
Nutraceuticals -- food or food-based products that have a medical-health
benefit, including the prevention and treatment of disease -- have a bright
future. In a recent report, Datamonitor placed the nutraceutical market at more
than $16.7 billion (combining the $8.8 billion functional foods segment and the
$7.9 billion dietary supplement market). Based on clinical research, the
Foundation for Innovation in Medicine found that about 140 million people --
nearly half the adult population of the U.S. -- spend approximately $12 billion
annually on dietary supplements, such as vitamins, minerals, and herbal
remedies.(A)
Under terms of the eNutranet, Inc. agreement, Newgold, Inc. will acquire a total
of 75 percent of eNutranet for approximately $5 million in operational support,
technology development, and funding. eNutranet expects to use the proceeds for
the development of its products and services and to expand its advertising and
promotion activities. Estimated first year revenues from multiple nutraceutical
industry revenue sources are projected to exceed $6 million, then increase to
$36 million dollars by 2002.
eNutranet (www.enutranet.com) is a full supply-chain and e-commerce application
service provider that facilitates distribution and sales of products from an
assortment of brick and mortar nutraceutical firms. Just as Commerce One enabled
the automotive industry, eNutranet's services provide all trading partners in
the nutraceutical industry (including vendors, suppliers, distributors, and
manufacturers) with the ability to interact with multiple business partners,
function seamlessly as both a buyer and seller, complete business transactions,
and manage complex business processes via the Internet. Utilizing eNutranet's
services, nutraceutical participants can reduce costs by channeling
opportunities to preferred suppliers, increase revenue by doing business more
efficiently with existing clients, and extend their reach to prospective
clients. Additionally, by connecting all nutraceutical supply-chain partners via
the Internet, eNutranet, Inc. improves forecasting and provides real-time access
to order and shipment status, ultimately reducing manufacturing, distribution,
and sales costs.
"Clearly, we believe the future is bright and profitable for the industry, and
we believe eNutranet has the unique opportunity to be a market leader by fully
automating industry participants using the Internet," said James Cutburth,
president and CEO of Newgold. "We're excited about the growth potential of the
marketplace and for eNutranet. We believe that this is the future of e-business
for the nutraceutical and food industries."
eNutranet's first client is California-based NutraStar, a leading developer of
nutraceutical products. These products are food or parts of foods that have a
medical-health benefit, including the prevention and treatment of disease.
Nutraceutical benefits also include cardiovascular health, diabetes control,
free radical intervention, and increased energy and endurance. eNutranet will be
the exclusive manager of all online transaction processing and supply-chain
management for NutraStar. Additionally, NutraStar will utilize eNutranet's
capabilities to more effectively distribute an advanced, quality product line of
natural, food-based and nutrient-rich capsules, energy drinks and bars worldwide
via the Internet. The first implementation of eNutranet's commerce solution,
which is scheduled to go online this fall, will be to automate the order and
inventory processing of NutraGlo, Inc., a joint venture between NutraStar and
NaturalGlo(R) investors and the largest supplier of stabilized rice bran to the
U.S. equine market. Additional implementations will provide full supply-chain
management from food producer to consumer, as well as e-commerce transaction
capabilities. eNutranet's revenues will be a percentage of all e-commerce
transactions.
"eNutranet will provide us with a completely new way of doing business," said
Patricia McPeak, CEO, President and founder of NutraStar. "Utilizing eNutranet's
functionality expands our customer base and eliminates unnecessary costs and
time delays in supplying our distributors with new inventory. We are very
excited about adding this facet to our business."
About Newgold
Newgold (www.newgold.com), the "next generation" of Internet investment
companies, has recently adopted a profitability-centric partnership incubation
model targeting high-tech, business-to-business, e-commerce and application
service provider (ASP) start-up companies. As a Newgold portfolio company, early
stage entities receive the necessary cash and other resources (human, legal,
marketing, technical) to support their growing activities in an efficient
manner. Newgold believes that this model will accelerate the time a start-up
needs to ready itself for an IPO or liquidity event. Newgold's strategy is to
help build companies that can withstand the traditional tests for investment --
profitability and time.
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Current price $0.369
John :-) |
