Shareholder letter from CEO
November 20, 2002
Dear NanoPierce Shareholders,
As is obvious to any experienced investor, the common stock of NanoPierce is being subjected to a premeditated, concerted short selling attack. It is intended to damage the Company, destroy shareholder confidence, deliberately interfere with financing offers to the Company and with the intent to force the Company into bankruptcy.
We know who the perpetrators are and we are taking appropriate legal measures to seek redress for their illegal activities against the Company. They will not accomplish their malevolent goal.
The Company is also well aware of the recent flurry of sensational news about smart labels and some of the major participants and the questions raised about the position of the Company in this rapidly developing, large, strategic market. I am severely restricted in what I can say about NanoPierce’s activities in this arena. I can assure our shareholders that we are very confident of our position among the key participants in this strategic market. At the moment there is a significant degree of re-alignment occurring among the major participants in this market seeking the most competitive strategic alliances possible. NanoPierce is positioned extremely well among these participants. We will be involved in providing a solution to low cost labels. It is very telling that connection technologies are not mentioned in these recent news announcements. You may properly conclude that the issue of electrical connection technology has not been settled in this arena. NanoPierce is still very much in the game, to conclude otherwise – because we have not been mentioned – would be a big mistake.
One approach to manufacturing of smart labels is through the use of a “strap”. A “strap” is simply a chip carrier. It is composed of a flexible substrate, two conducting traces and a chip. Straps, in our opinion, will enjoy an extremely large market since it allows printers and other convertors to integrate electronics into their otherwise conventional manufacturing processes. Straps have very broad potential in the deployment of RFIDs. For example, to make a “smart box” – the wave of the future – a strap can simply be connected to an antenna already printed on the box. We believe our technology provides a highly valued solution to producing low cost, high volume straps in two different ways. First, WaferPierce™ can be used to connect the chip to the strap, and second, NCS™ can be used to connect the strap to the antenna. Major participants in the label market have already shown a high level of interest in our technology offerings to manufacture “straps”.
So far the Company has been successful in obtaining the financing necessary to continue operations and increase production. We remain confident of our ability to obtain future financing.
Our future is very bright. The management team of NanoPierce is dedicated to achieving the lofty goal to which we have always aspired, namely, to become a world class Company.
We thank you for your loyalty and support.
Sincerely,
NANOPIERCE TECHNOLOGIES, INC.
Paul H. Metzinger
President & CEO |
