Charles,Dean and All....I normally wont post a lot of info on this thread as there are too many who cry bullshit,,oh well.I'll give anyone $5,000.00 if they can prove I didn't talk to Hinton and Craft on Monday nite,in person. And,anyone talking to Dr. hinton can confirm the meeting..............
Met with the good Dr. and company attorney Tom Craft last nite.There were 2 ADGI
investors,my stock broker and me. I expected a few more to show up,but I think the smaller
group was better. We had a chance to really get into some dialog that with a larger group
wouldn't have been able to do.
We first addressed the question of the shares issued for services,and if these shares are
restricted,or on the market. Hinton said that a lot of the shares are to be issued based on performance. If they don't perform.they don't get paid,simple as that. There are a total of 14 consultants and others that are involved in ADGI on a day to day basis,and as they are paid with stock,it is almost a certainty that some of the unrestricted shares have been,or will be sold into the market. At least 40mill of the shares issued are rule#144 restricted shares and
as such cannot be sold for a specific period of time. Tom Craft stated that he has no intention of selling any of his stock at these prices.
The meeting in Miami earlier in the day was to give deposition in the lawsuit ADGI has against Imaging Systems Synergies Inc. (ISS),for the return of approximately $100,000.00
that ADGI had advanced SSI towards a proposed buyout of that company. SSI is in business and is making money. Dr. Hinton believes that we will be successful in winning that lawsuit.
The Market Makers have been calling Hinton for million share blocks of stock. He said that
he wouldnt give it to them .
We asked why ADGI has not been doin PR on the radio,and Dr. Hinton said that it costs $25,000 per month to be on the next superstock show,and that money could better be spent developing the company rather than hyping it. WWW.stockline.com has info on the company on their website,and is due for an update now. The company Website is still being developed and will be online as soon as the company has the funds to have someone maintain it and keep it current.
There will be a few news releases before the meeting in New York. I asked if it would be possible to attach a dollar value to announced shipments. He said that is not possible in all cases as sometimes the prices we pay are not firm from order to order,but he will whenever he can post contract values.
The 4th qtr numbers will be out by the end of March,when I asked why a multi-billion $ corp can put earnings out within 2 weeks after the qtr. ends,why can't ADGI? He said that they have full time staff and accounting systems that do that,we have to deal with an accountant and
it takes time to put it all together. He said that a preliminary statement will be made before the 4th qtr. numbers are released,but the fully audited statements will be after that.
We talked about the telecomm revenues,and Hinton said that they are running 60-90 days behind behind projection because of the updating of the equipment. He is working on the possibilities of adding 800#'s..911..and internet access to the telecom services now being offered,but said competition is tough in those areas. There are over 100 customers signed up for the call back services being offered in Guinea and Mali.
ADGI has abandoned the blood derivitive business from China,as the quality was sub-par
because of the way they manufactured it and the price has over doubled from the original negotiated prices. The world wide shortage of blood derivitive products has seemed to have been eased,and the bottom line profits do not warrant any further interest in this area.
The company is actively seeking to make a solid aquisition to give ADGI a stable asset base.
By having a pre-determined cost on product,the company can more effectively go after long term solid contracts in Africa,S. America,Mexico,and other parts of the world markets. By having recurring annual contracts,the company can solidify it's position in this niche market.
Negotiations are still ongoing with Abbot labs,and their new strip test kit for dengue fever should be ready for market in April of this year. Dengue fever has become almost epidemic in Haiti,Puerto Rico,the Dominican Republic and parts of Mexico. It takes many visits to the
powers that be in those countries,and mucho "back scratching",and personal contact to secure
any kind of orders for product. Competition in third world countries can be tough,and the winners decided by the size of your expense account.
As of now there are over 300 people signed up for the NY conference,no one expected this kind of overwhelming response. Dr. Hinton said that everything is proceeding as planned,and that the meeting will be videotaped and available to those requesting it that could not attend. I am assuming this means brokerages and others in the investment community that may be interested.
All in all there was no 'earth shattering" news he could/would share with us,but I personally left last nite feeling a lot better about my investment in this company. The exact amount of shares issued and outstanding will be in the 4th qtr, 10_Q. The results from Brazil should be forthcoming at any time now. Dr. Hinton would like to buy back shares in the company at these low prices,but current revenues are being used to try and secure new business contracts. A buy back will be announced as income and revenues allow. All bills are current and there are no outstanding debts that the company owes. 1st and 2nd qtr 1998 numbers will reflect the positive revenue stream being generated now by telecomm and announced contracts,and 3rd qtr numbers should show strong profits.
Dr. Hinton appeared to me to be very sincere in his desire to make ADGI a solid company.
He has put over $90.000.00 of his own money into the company,besides working for no cash compensation. I have made my mind up that I'm in 'till it flies or dies.......
Good Luck.........John
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