Subj: Re:squawk box July 3 interview
Date: 96-07-05 16:20:59 EDT
From: TomBettyD
CNBC Squawk Box Interview July 3, 1996.
Company name will be changed after meeting on July 18 to Saf-T-Lock (spelling?). Stock symbol will be changed from "EDIT"to "LOCK." Following is essence of the interview with Frank Brooks, Chairman of RGB Computer.
A gun cannot be fired with the lock on...can be operated in the dark...combination by feel...gun can be locked with 2 motions. Mr. Brooks had a revolver and demonstrated how quickly the lock is activated, he offered to demonstrate again after commercial (quotes had covered part of the gun) but was not given the opportunity. The lock doesn't change the guns shape...it can be carried in a holster or stored away. The gun cannot be fired. But to make it fireable enter the combination by feel (less than 5 seconds).
They have traveled around the country researching (law enforcement people) last five years. Design was ready year ago...15 [or 50 I took the conservative number--couldn't tell on the tape what was the number he used] law enforcement agencys are waiting to test...designing for about 31 different model firearms this will take 4 to 6 weeks. One lock fits all guns, however, the adapter plates in each firearm are different...take off old grips, put on new grip kit which contains the safety lock.
Manufacturing capability: Dynacast (spelling?) In South Carolina, probably the premiere minature die-cast company will be finished in 4 to 6 weeks. This company has 26 locations throughout the world. Assembly will be by Dayron (spelling?) Orlando, Florida (for years this company has made bomb fuses for the government). Plan was to make first 10,000 locks by end of June...almost on schedule finished next few days. Manufacture 20,000 each month after this. In process of setting of pipeline--8,000 mailers to premier firearm dealers last week. Getting response to set up dealers to set up pipeline to the public.
Regarding "Cabot (sp?) Market Letter" recommendation--At the time Mr. Brooks didn't know that their company had been recommended. He was surprised of the big spike in price that day. Discovered he (Cabot) had called Investor Relation's man...sent same package to people normally investing (only contact).
Financially secure: when questioned re company's 10Q...Mr. Brooks informed him they had 1.5 million cash on hand (treasury bonds) available. Funding to take thru end of year then sales will fund...
Market: realize firearms in one half of the homes in United States...70 million handguns...advertising to the genereal public is going to be expensive...[my comment: CNBC has sure given them a good start].
Publicly Traded/Family owned...number of relatives on payroll. Mr. Brooks said they have already been addressing that issue. Actively putting together professional management team...can't get all that kind of talent and have family too.
The interview closed with the comment that the product could save lives and hope, if not your company [Mr. Brooks'], some company bring this to the public
Betty |
