"An Interview with James Tilton"
RH. James, before we discuss Tianrong Building Material Holdings Ltd. -- let's call it TNRG for clarity - why don't you give us a brief description of your business background.
JT. In the early 80's I was in the restaurant business and in the mid-80's through early 90's I was involved in sales and marketing.
RH. Well that certainly is a far cry from TNRG and China. Tell us how you got involved in the Peoples Republic of China?
JT. Well, there is a lot more to TNRG than just China. But, as you may know Richard, my wife is Chinese. She was born in Shanghai and lived there until she was 26 and received an under graduate degree in electrical engineering from Shanghai University. She still has family and business contact friends there. After she came to the United States, she received a Masters in Business from Adelphi, with honors. My wife has always believed in the viability of American based enterprises with involvements in Mainland China. Eventually, I came to see the wisdom of her thinking.
RH. How did you act on that understanding?
JT. In February, 1992, I travelled to Mainland China as a manufacturers representative for 2 U.S. public companies selling chemicals and pre-engineered industrial buildings to China. I continued to do that for 3 years while I investigated the Chinese market place and looked for the niche which would be best for me.
RH. So now we are in about 1995 right? What happened then?
JT. One of the Chinese competitors for my repping company dealing with pre-engineered industrial buildings was known as Tianrong Building Element Co., Ltd. It was controlled by a man named Deschrivjer and through his Irish holding company Deschrivjer offered me the position of CEO and director of the Irish holding company. I accepted.
RH. I'm confused James. What is the relationship between the Chinese company and the Irish holding company and what do those companies have to do with TNRG?
JT. The Chinese company was the operational manufacturer of the products in Mainland China. They had entered into a joint venture agreement with Deschrivjer's Irish holding company and that holding company was acquired by an American 12g fully reporting publicly traded company in July 1995. That publicly traded company was renamed TNRG.
RH. I gather from information provided to me that Deschrivjer left TNRG with hard feelings. Would you care to comment?
JT. Not really. There isn't any need to. Deschrivjer resigned as an officer and director and returned all of this ownership of stock in TNRG. Why don't we mark it up to a philosophic dispute.
RH. Did Deschrivjer's leaving put you firmly in control of the Company?
JT. Not in the share ownership standpoint but certainly from an officer and directorship standpoint. But as you know, I am the Company's President and Chief Executive Officer.
RH. What did the company commence to do under your leadership?
JT: The Company in a share for share exchange became the 96% owner of Night Hawk Entertainment Corp., an American private company developing medical products including personal electric cardiogram, foot flexion device and a cell injury controller. Additionally, Night Hawk has developed and manufactured CD Roms which aid in computer training and the Company also has a computer training center.
RH. Tell me about the medical products that are being developed.
JT. Well we are very excited about our new design for a computerized EKG. This battery operated electric cardiograph machine we think will provide the individual who needs to monitor heart functions with a cost efficient reliable home machine. We believe that doctors will encourage their patients to purchase our device as an adjunct diagnostic and monitoring home tool. We are presently looking into the possibility of home health providers paying for all or part of the device. The device is presently in production and will be available for purchase in the United States within the next 6 months pending FDA approval.
RH. Do you have any other medical devices soon coming to the market?
JT. Yes we have our foot dorsiflexion device, it is patent pending and stimulates circulation in the leg and foot. We believe that it will be a useful adjunct in physical therapy for immobilized or paralyzed individuals and as an aid in prevention of thrombosis.
RH. Didn't President Nixon suffer from Thrombosis?
JT. Yes. It's a pity that our device wasn't available for his use. May be the course of history would have been changed. Do we have enough time for me to describe our cell injury controller?
RH. Yes.
JT. Our medical division has developed an instrument to examine the morphologic, physiologic and bio-chemical changes of brain and other organic cells resulting from various traumas. The machine is presently in production.
RH. Do you, as president of TNRG, have an active or passive role in Night Hawk?
JT. Though passive, I do spend overseeing time ensuring that Night Hawk moves forward in its corporate mission.
RH. Rumor has it that Night Hawk is involved in a classified project for the US Navy.
JT. I think you've been watching too much television Richard and I don't want to go into this subject in great detail but I can advise that Night Hawk is feverishly working to perfect technology based on the neural inversion theory. If the technology is what we hope it too be, it could be a break through in identification of moving bodies in the seas and oceans. Night Hawk's engineers are being assisted by some of their PhD. colleagues at Columbia University in New York City all of whom are working with a view to licensing or selling the technology to the United States Navy. In our view, it would seem clear that successful technology might be of great aid in the defense of our country.
RH. Wow! Are there any other Night Hawk projects you could discuss with us today?
JT. Um! Yes, but maybe it would be better to have you converse with one of our scientists. My role is to husband TNRG's money and to move TNRG forward to the best interests of its shareholders. My scientific knowledge is limited. Maybe I could bring Dr. Fei to our next conversation.
RH. Looking forward to it. What else is TNRG doing?
JT. Well TNRG owns 90% of one of the 12 franchises in the new and exciting US Basketball league. As far as I know, the US Basketball league is the only professional sports league which is trading publicly.
RH. Would you be at liberty to disclose the name of the team.?
JT. Of course, but I choose not to. There is a strong possibility that the team may relocate at the end of the season and I do not want to prejudice current attendance. You might want to watch a movie called Slapshot with Paul Newman to understand the problems of a "lame duck" sports franchise.
RH. Great move. Let me ask you this, why did you make a capital investment of TNRG's money to purchase this team?
JT. I absolutely believe that minor league basketball is poised for same the incredible enhancement of valuation of the minor league teams that has recently occurred in baseball. We all know that America is a sports crazed nation. We also know that there are many, many competing attractions seeking the same recreational dollar. But the recreational dollar has been stretched to an absurd breaking point. By that I mean, that taking your wife and two kids to a professional baseball game, buying tickets, a couple of hot dogs and soft drinks plus parking has become an exorbitant proposition. The same is true of all of the 4 major league sports. Minor league baseball on the other hand a wonderful entertainment package at affordable rates. Attendance is up throughout the country and minor league baseball and hockey teams show profit. That's what I see in the near term future for the USBL.
RH. I remember seeing a press release recently for TNRG talking about its sports division. Besides the USBL, what's in the sports division?
JT. Well Richard we have a 50% ownership in Cavalcade Boxing. As you now, Cavalcade owns the rights to film, tape and kinescope of some 45 world championship boxing matches. Some of the really good ones, I might add. Color commentary for the fights is provided by Bert Sugar, one of the leading experts and colorful character on boxing. Cavalcade licenses its film library for television viewing and, in fact, it recently announced that it entered into three contracts with stations and cable networks to air the fight libraries. Cavalcade continues to seek additional films to purchase to expand its library and increase its potential profit.
RH. Why haven't you changed TNRG's name?
JT. I don't understand.
RH. Well, everything you have told me about is in the United States and TNRG obviously has some relationship to China.
JT. I've saved the best for last. Our Company in May of this year acquired an 80% interest in a Chinese holding Company which owns a 200,000 square feet shopping center located in Szechaun province. The shopping center is 100% rented. The shopping center layout is traditional Chinese in nature. Many, many small shops display their wares and goods in open stall fashion. The shopping center becomes the point of buyers' destination for all things required for life's existence. We hope that this acquisition is the first of many which our company will make in the Mainland in the near future.
RH. I remember reading recently that the Company was planning some spin-offs in the near future. Can you comment on that James?
JT: It is our current intent to file registration statements for the sports division, medical division and defense divisions and to, when registration has been declared effective, declare dividends to TNRG shareholders of a percentage of each of such companies. We believe that this method would best maximize shareholder value.
RH: Have you set record dates yet?
JT. No. Not until we have filed the registration statements and know what the effective dates will be. But we expect to file the aforementioned registration statements some time in August.
RH: I can't thank you for the time that you've spent with us today. Do you have any closing thoughts James?
JT: I am aware that TNRG with its diverse acquisitions is a unique type of company. I believe that time will prove that my vision for our company is a winning one. It has always seemed to me that by acquiring niche development companies and nurturing them and their products to a marketplace, positive cash flow will be generated and correspondingly enhance shareholder value. I am happy TNRG shareholders have entrusted the Company to me to help fulfil our corporate mission. Thank you Richard.
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