DD update (continued):
- April 29, 2001 -- NanoPierce Technologies, Inc. Files Lawsuit Regarding Harvest Court LLC Financing
The lawsuit was filed, in order to protect the shareholders, for damages resulting from alleged stock manipulation, federal securities fraud, violations of the Colorado Securities Act, common law fraud, fraud in the inducement, conspiracy, and similar causes of action. The suit seeks unspecified actual and exemplary damages.
The lawsuit was filed by the firm of O'Quinn & Laminack and Christian & Smith of Houston, Texas and Holme, Roberts & Owen of Denver Colorado. Lead counsel for NanoPierce is John O'Quinn of O'Quinn & Laminack. Mr. O'Quinn was the lead counsel for the State of Texas in the $16.5 Billion settlement against the tobacco industry and is rated as one of the top ten plaintiffs counsel in the United States. He has obtained verdicts and settlements exceeding $25 Billion in his career.
- April 26, 2001 -- NanoPierce Wins Big -- Court Rules: DiFrancesco Has Waived His Right to Appeal
- April 9, 2001 – re-launch of its corporate website: nanopierce.com.
Incorporating a new graphic design concept, the site offers increased information regarding the company along with improved navigational features.
- February 20, 2001 -- NanoPierce Technologies, Inc. Hires Chemical Engineering Expert in Colorado Springs. Mr. Bin Zou, formerly with GE Lighting, Fluorescent Technology, Lighting Technology Division, joined the Company effective February 19, 2001.
- February 16, 2001 -- NanoPierce Card Technologies GmbH Expands Staff to Accelerate NCS Application Developments
- February 1, 2001 -- NanoPierce Technologies Announces NCS Systems Production Ready ... the two prototype systems in Colorado Springs, custom designed and built for applying NanoPierce Connection System (NCS) to flex circuit, are now fully operational.
- January 29, 2001 -- NanoPierce Technologies, Inc. announced that it had filed a Patent Application for a METHOD TO ASSEMBLE LED ARRAYS.
- January 8, 2001 -- NanoPierce Technologies, Inc. today announced that the only license agreement held by Louis Di Francesco, the inventor of the particle interconnect technology, is the very limited two year license granted to him pursuant to the November 29, 1999 Court Declaratory Judgment Order approving the settlement agreement.
- November 17, 2000 -- NanoPierce Technologies files S-3 registration for $150,000,000 shelf prospectus.
- November 13, 2000 -- Nanopierce Technologies Inc. Announces Appointment of Dr. Robert F. Shaw to the Board of Directors
- November 9, 2000 -- Nanopierce Technologies Announces Appointment of M. Albert Capote to the Board of Directors
- October 27, 2000 -- NanoPierce Technologies Retains CEOcast as Director of Internet Investor Information Services
- October 24, 2000 -- NanoPierce Technologies, Inc. Files Six Applications for Trademark Registration
- October 20, 2000 -- NanoPierce Technologies, Inc. today announced that it closed a $15,000,000 Equity Financing.
- October 13, 2000 -- President and CEO, Paul H. Metzinger, was interviewed by Michael Wachs of CEOcast.com
ceocast.com. Interview no longer available but transcripts can be found on investortoinvestor.com.
- October 6, 2000 -- Open House at Colorado Springs, Colorado. Over 100 attended. Survey of participants resulted in shared sentiment that NPCT has management that is professional and business oriented, that NPCT has the technology to provide the solution to the current interconnect problems, and that NPCT has the attitude to bring NPCT to a global position in the world economy and succeed.
- September 25, 2000 -- Dr. Michael Wernle received the "Best of Session" Award for his paper presented at the International Microelectronics and Packaging Society (IMAPS) Conference in Boston, Massachusetts. ... The paper describes how the NanoPierce Connection System (NCS) is a low-cost electrical contact coating that makes electrical connections at very low contact force and very low consistent resistance. Under these conditions, smart labels can be produced cost-effectively and in very high volumes.
- September 21, 2000 -- NEW YORK - Alchemetal Corporation, a closely held New York corporation, is pleased to announce an informal working relationship with Colorado based NanoPierce Technologies, Inc., to develop its breakthrough polymer coating as it relates to NanoPierce’s revolutionary enabling technology used for super reliable electrical connections without solder or pin-in-hole connectors.
- September 13, 2000 -- NanoPierce Card Technologies GmbH Announces Cooperative Agreement With Elcos AG in the Emerging Market of LED's
- August 30, 2000 -- NanoPierce Technologies, Inc. Announces Open House for Colorado Springs Facilities and NCS Prototype Deposition System on October 6, 2000. I am going.
- August 28, 2000 -- NanoPierce Card Technologies GmbH Receives Order From Polish Telecom and Expects Further Cooperation Agreements
- August 23, 2000 -- NanoPierce Technologies Inc. announced today that it obtained a new patent on its NCS Technology.
- August 22, 2000 -- NANOPIERCE CARD TECHNOLOGIES GmbH, a subsidiary of NanoPierce Technologies, Inc. announced today that Mr. Richard Berger joined the software development group at the company's technology center in Hohenbrunn effective August 1, 2000.
- July 5, 2000 -- NanoPierce Card Technologies GmbH Announces First Revenue-Generating Contract With Lipag Industrial-Consulting Establishment, Liechtenstein .... in cooperation with 3S SILICON TECH, Inc. and 3S-Phoenix, Inc. announced the signing of a contract for software development and project management.
This contract is estimated to be in excess of 1/2 million to 1 million, is open ended and could result in greater revenue.
- June 19, 2000 -- NanoPierce Signs Technology Marketing Agreement for Cellular Phone Industry with WaveCom, Ltd. of Mankato, Minnesota, to introduce and market NanoPierce's proprietary NCS (NanoPierce Connection System) technology to the world's leading cellular phone manufacturers
- June 8, 2000--NanoPierce Card Technologies GmbH, a subsidiary of NanoPierce Technologies Inc., and Simotec GmbH today announced the signing of a cooperative agreement between the two firms.
This agreement paves the way for the interconnection processes developed by NanoPierce to be integrated into the highly advanced flip-chip bonder of Simotec GmbH. The primary target of this cooperative effort is the promising and extremely high-volume market for "smart labels," RFID components that will in the future replace bar code labels in applications such as baggage tracking at airports, express mail service and article surveillance.
- May 23, 2000 - NanoPierce - Ladenburg Terminate Financing Arrangement of $30 million. NPCT has been offered better financing and terms else where. This is also a con which will be listed below.
- 4/20/00 NPCT has files S-3 as a formality regarding the $30 million financing.
- 3/10/00 NPCT listed on Hamburg exchange
- 3/6/00 Stockreporter.de released updated evaluation of NPCT.
- 2/22/00 announced that it signed an agreement with the New York City investment banking firm Ladenburg Thalmann & Co. Inc. for it to serve as exclusive agent in a $30 million financing arrangement.
- 1/26/00 announced the expansion of its "core" technology team under the leadership of Dr. Michael E. Wernle, president and chief executive officer of NanoPierce Card Technologies, to include Michael Kober and Karl Heinz Kuhn.
- 1/19/00 NPCT announced the founding of a wholly owned subsidiary, NanoPierce Card Technologies GmbH. Based in Munich, Germany, NanoPierce Card Technologies GmbH was created to commercially exploit the potential of its proprietary NCS (NanoPierce Connection System) technology.
- 1/18/00 NPCT engaged World of Internet.com, AG of Hamburg, Germany, as its investor relations representative for Europe. On 3/10 NPCT listed in Hamburg. Internet.com, AG was let go mid 2000 or earlier.
- 1/14/00 NanoPierce listed on Frankfurt Exchange as NPI
- 1/13/00 NanoPierce engages EBI Securities Corp as investment banker. EBI Securities underwent a name change in 2000 to General Capital (MM GCAP).
- 1/12/00 $4 million in financing obtained. This will enable NPCT to follow their business plan and aggresively enter the smart tag/label sector which is estimated to be US$6 billion annually. Full disclosure of terms were present in the 10Q released 2/11/00.
- 1/11/00 Stockreporter has featured NPCT with a conservative target of $20 by 2001. They have updated their site in early March to indicate that NanoPierce may be on a fast track and that stockreporter.de may have to revise their target prices.
stockreporter.de
Note: Though stockreporter.de did a good job with NPCT during 12/1999 through 3/2000 and disclaimed their compensation from NPCT, they were investigated in their non or inapropriate disclaimers for other companies.
Regarding their target price of $20 in 2001, it did not happened.
- 12/2/99 NPCT has received Declaratory Judgment giving them total rights to all patents. This is the end of over a year long legal battle. Contracts and financing have been delayed due to the litigation. Now NPCT can move forward.
- 11/99 Dr. Wernle has begun an aggressive schedule to develop business in Europe. NPCT Europe is scheduled to be operational in January 2000. See above press release. NPCT Europe will be smart card/smart tag and label. NPCT Denver will be attending NPCT Europe in January 2000 for the commencement of that operation. They departed 1/15/00. They returned 1/31/00.
- 4th qtr '99 approx. Dr. Wernle has come on board to NPCT as Exec Vice President, has opened up offices for NPCT Europe, is very respected in the industry and brings strong connections
- 7/8/99 Schlumberger entered into a Confidential Disclosure Agreement with NPCT.
- 6/11/99 NPCT entered into a Technology Development Agreement with ORGA Kartensystemes, GmbH, one of the world's largest smart card manufacturers. ORGA Kartensystemes, GmbH of Flintbek, Germany, is working with the Company relating to the application of NCS to the design and manufacture of dual interface smart cards.
- approx 9/99 Orga is going to perform its own testing. Testing should be completed and beta testing begun for field testing. Continued testing indicated Feb. 2001.
- 5/17/99 NPCT entered in a Technology Cooperation Agreement with Meinen, Zeigel & Co., Munich, Germany to develop applications of its technology for dual interface smart card modules and the qualification and industrialization of a chip module embedding process on Meinen, Zeigel & Co. equipment.
- 5/19/99 NPCT entered an Agreement-In-Principle to form a joint venture or limited liability partnership to exploit the Nanopierce Connection System ("NCS") of Nanopierce Technologies, Inc. through and in conjunction with the contributions of Cirexx Corporation.
- 3/99 NPCT made an Application and Development Agreement with Multitape GmbH & Co. KG,.
- Summer '99 approx. Testing by Multitape established that the technology exceeded ISO standards
- 3rd qtr '99 approx. Japanese (Taiko Denke) company has expressed strong interest in technology.
- Summer '99 approx. Cyrex is waiting on Boeing to provide them with specs. Once available, they will be able to commence on building test systems incorporating NPCT technology. However, they are not waiting for Boeing but are providing info to other clients to use NPCT technology. Spring 2001 - Boeing is indicated to interested but is dormant for now.
- Rumors are of other smart card producers are "talking" with NPCT.
- Rumors that other non smart card companies are talking to NPCT.
- 3rd qtr '99 approx IBIS has been signed on and within the release, has indicated that this relationship will hasten the already fast pace of NPCT insertion into the market.
- INCE Annual report '99 and NPCT 10Q comments by Paul on investortoinvestor on 2/14/00 indicated that financing is not only being pursued for NPCT but also for INCE, when, unknown.
- Other potential contracts from unknown sources are extremely possible that add to revenue
- Dr. Herb Neuhaus joined the staff of NPCT late 1998. He has been a very strong asset to NPCT in the development of the NCS technology. He signed a new contract late in 1999 for two more years.
Cons:
- March 25, 2002 – NanoPierce files 8K disclosing the increase of the Authorized from 100 million to 200 million shares. This filing is for among other reasons:
(i) to have sufficient authorized capital available for anticipated strategic investment opportunities; and
(ii) as part of a strategic plan incorporating defensive measures to reduce the likelihood of a hostile takeover.
- December 6, 2001 -- Thanks to Louis DeFrancesco's posting on Raging Bull, we were alerted to the event that the Appellate court has sent the April 26, 2001 ruling that DiFrancesco has waived his right to appeal back to the court, with direction, for further resolution of this litigation. The lower court is expected to address this matter in January 2002. In April 2002, LDF was to appear in Denver for a review. He neither showed up nor was available at the proscribed time for telephone discussion. The judge granted NanoPierce a jury trial against LDF.
- August 6, 2001 -- Court Issues Preliminary Injunction Barring NPCT From Transferring Shares Of Registered Common Stock : Court Denies NPCT's Motion to Dismiss Harvest Court's Lawsuit
This can be interpreted as a "pro". The release indicates 12 million shares is the total liability if the worst case happens after the long drawn out court battle is concluded. What also was not stated are several points.
Point 1: NanoPierce nor their legal counsel were not notified of this court date. Big omission and inappropriate in any legal eye.
Point 2: Harvest Court had asked that all potential shares that NPCT could issue be "locked up". That was denied.
Point 3: The court did not request that any shares be held in escrow.
- June 7, 2001 -- M. Albert Capote resigned effective June 1, 2001 for personal reasons. Source was 8-K filing on June 7, 2001.
- May 14, 2001 -- Court Grants Harvest Court LLC's Motion for Temporary Restraining Order Enjoining NPCT From Transferring Its Registered Common Stock. On May 21, 2001 the New York Supreme Court issued a favorable ruling for NanoPierce regarding this restraining order.
- May 10, 2001 -- NanoPierce Sued by Harvest Court, LLC for Breach of Contract. NanoPierce will be aggressively defended by the firm of O'Quinn and other counsel. This suit was filed in response to NanoPierce's suit against Harvest Court and associated parties.
- buying out Harvest Court's share position. The litigation filed on April 29, 2001 removed this process and effectively blocks HC from getting any shares in the reset periods and from getting any money squeezed out of NPCT. Damages are being sought in the litigation.
- NPCT being able to announce via press releases their contract and/or business development.
- Harvest Court, financier of $7.5 million has needed to sell. NPCT is aggressively proceeding to buy out HC and remove remaining and vested shares from entering the market. HC received 2.1 million shares vested through reset period as indicated by 424B5 filed with SEC on 3/12/2001. Again, the suit against Harvest Court of April 29, 2001 is aggressive and considered positive.
- in the pros listed above, revenue and contracts alluded to have not been announced as of April 2001. Negotiations are stated to continue and that they are sensitive. Multiple testing has been stated to be in process. Numerous top notch companies have been mentioned in interviews that are involved with NPCT such as IBM, Phillips, Motorola, Infineon, Orga, Gemplus, etc.
- March 28, 2000 DiFransesco has appealed the 12/2/99 Declaratory Judgment. On April 26, 2001 NPCT announced that Louis has "waived his right to appeal" through the judgment of the Court.
- 10Qs and 10Ks shows no significant revenue. Revenue is alluded to and has been alluded to for over a year.
- On November 1999, NPCT had $38 in the bank. As of 1/1/2001, NPCT had $8 million through funding. Refer to previous funding items for list of funding activities. As a pro, NPCT as of 3/2001 had over $5 million cash reserves and is solvent. With no additional revenue and financing, reserves are adequate for up to two years.
- Multiple conjectured short positions have been working against the share price of NPCT from April to December 2000. Additional sentiment is another short position entered 2/2001 to 4/2001.
- Fumbles on past financing in 1998 (Now old history)
- Fumbles on a PR company beginning 1999 (Now old history)
- The competition is entrenched (cold solder, solder, adhesive) and NCS must be proven to be superior. All indications are that NCS is superior but this must be determined by individual company tests.
My Assessment:
The series of weekly and more frequent press releases starting January 2, 2002, indicate rapid growth within the company and also indicate continued press releases for the investment community. The stock has risen near 100% in three weeks during January 2002.
The Open House held by NanoPierce GmbH on September 20, 2001 in Munich, Germany revealed the level of high quality of the personnel within the company and the high level of quality in which they are conducting business and NCS qualifications for the industry. I left the Open House with an understanding that NanoPierce is a viable company and has the strongest degree of certainty that I can grant an emerging company of success and market penetration.
Compared to 1999, the year 2000 saw a tremendous amount of growth within NPCT. In year 2001, NanoPierce has grown even more and is on the verge of commercialization (4th qtr 2001) of NCS that is projected to gross revenue in terms of $billions in the upcoming years.
In November 1999, NPCT had a grand total of $30 some dollars in the bank. In November 2000, NPCT had $8 million dollars in the bank. Their burn rate is kept under tight control and they have cash reserves to pursue their aggressive expansion and exploitation of their technology NCS. They have announced via interviews that their cash position is strong (August 2001) and sufficient for current needs. Expansion will necessitate new funding but only at much higher share values.
They have announced steady developments. The list of companies that they have alluded to working with has grown and the size and presence of those companies have also grown in stature (March 2001). As of August 2001, this list has grown even further and NPCT has stated that they get an average of one call a week from a new global player in the electronics industry.
With the press releases of February 2001, we have seen NPCT's staff increase. One year ago NPCT staff was less than 10. Staff is estimated in early 2002 to be around 30.
In 1st qtr 2000, we saw a premature spike in share value to 6 5/8. Many factors brought the share price down to an unreasonable level below .40 in the first 1/2 of 2001. The first half of 2002 should show publicly announced JV, Agreements, contracts, etc. with major players in the smart tag, smart card, LED, and WaferPierce sectors. Industrial partnership is indicated to occur in 2002, possibly 3rd or 4th quarter 2002.
This is the summary that I can think of. In my estimation, the pros out weigh the cons by a significant margin. Most of the cons (negative aspects) were revealed by mid 1999 and have been satisfied with positive aspects of news releases. The con of Harvest Court has been met by aggressive litigation by NanoPierce in 2001 which has stopped the negative influence in share value for at least two years and possibly permanently upon favorable rulings for NanoPierce.
Respectfully,
Kent Kloock |
