Vengua sent a full report copy - here it is FYI and DD (it's what caught my interest...):
Subject Company : Valence 9 Development Inc
TICKER: - EXCH: UN-LISTED DATE: 14 AUGUST, 1998 REF: KS/VALE980814
SUMMARY
ú Development Stage Company
ú Internet Operating System
ú Proprietary Product
ú Allows corporations to design and publish their own web content
ú Low Cost to client, Ease of Use, Compatible with other software
ú Target clients from major Internet providers to individual user
ú Alliance with marketing partner sought
Valence 9 Development Inc is a Nevada Corporation, based in Florida which was formed on February 2nd 1998 to research and develop high technology Internet/Intranet products. PageFactory is the first in a family of ancillary products that will be developed and marketed to established high technology companies interested in acquiring new products. PageFactory is the first operating system for the world wide web.
THE PRODUCT:
While there are increasing numbers of Internet Service Providers and millions with Internet access, putting content on the world wide web (web publishing) is not so accessible due to cost, complexity and security issues. PageFactory overcomes each of these issues and enables anyone with a computer to publish on the Internet. The OS will drastically reduce the costs associated with managing Internet/Intranet content and make it feasible to implement and maintain creative corporate Intranet solutions. Target clients would include all the major internet service providers such as AOL, T-OnLine, Maz as well as Internet/Cyber cafes, professional and political organisations who can all pass the benefits on to their clients and corporate and individual intranets.
PageFactory has no known competitors as an operating system for the web although several companies have implemented elements of PageFactory which could be competitive with the Company's product in some installations such as Lotus' Domino and Netscape which are offered primarily as "groupware" or "workgroup" solutions for companies to manage documents in a workflow environment. These products are also web servers unlike PageFactory and require the user to use server technology and in some cases other underlying software. The management does not consider them to be a web operating system such as PageFactory which can sit behind any software and provides considerable flexibility. The basic concept can be extended to other markets and the company intends to undertake further research into this area of development.
The first public PageFactory installation was deployed in September 1996 at Oklahoma State University. It is used to allow their 20,000 students to create their own web content.
The product will be sold in at least three forms:
ú Subscription to clients for use on their own equipment to provide services to their clients
ú To clients who will sell accounts which will be hosted on PageFactory servers
ú At a fixed price per server.
PRICING:
PageFactory can be sold in two modules, as a module for reducing administrative costs associated with managing large volumes of web pages and as an interactive option which gives end users the ability to load and maintain web pages directly on a PageFactory server.
The base module will be priced at $100 per month per server on a subscription basis. The subscription entitles the customer to receive free upgrades and basic support services.
The interactive option will be priced at $0.50 per account per month per end user having an interactive interface to a server. This strategy assumes that the customer will charge his clients a fee for the services.
A fixed price strategy may be adopted to meet the Domino competition head-on. PageFactory can be priced at $995 per server (as is Domino) including billing support for which Domino charges $1,000 extra. In addition $20 per messaging account may be charged (Domino charges $35). For example, a corporation installing PageFactory on one Intranet with 200 messaging accounts would price out at $4995 ($995 for PageFactory plus $20 x 200 messaging accounts) The equivalent Domino installation would cost a minimum of $8,000.
USE OF PROCEEDS:
The company's facility and equipment needs are not extensive as key personnel are in place, the product is ready for sale and the company believes that the market potential is real and substantial. Working capital, plus an aggressive search for a competent marketing and support partner are the primary requirements.
The management aim to position the new venture for an IPO within 36 months after inception. The company also intends to seek an alliance with major technology company capable of marketing and supporting it on a global basis or may consider selling the rights to PageFactory to an appropriate buyer.
PROJECTED RESULT:
The projected success of the venture is based on three factors:
ú Largely untapped and ripe potential market segment
ú the proven value of the initial project - PageFactory
ú the business, management and technical experience of the founder's team
Management anticipate that a 1% penetration into the Internet market would yield approximately $10 million for PageFactory under the proposed pricing strategy. Based on industry analyst's projections regarding the size of the market, it is expected that sales of PageFactory to the corporate market could bring even more income than Internet sales.
MANAGEMENT
CEO: Robert Short, formerly a senior executive at Radio Free Europe/Radio Liberty in Munich, Germany, has more than 30 years experience in information technology including 20 years at senior executive level. He pioneered the use of information technology logistic simulations for the Department of Defense, has planned and successfully implemented large global IT and telecommunications systems in several countries and introduced use of the Internet to support broadcasting operations for the world's largest surrogate radio organisation.
Chief Technology Officer: Wayne Walrath, the designer and developer of PageFactory is an expert in Internet technology and a successful entrepreneur. He is the founder and president of Acme Technologies which focuses on database development, systems integration and real time data capture. He was also a Microsystems specialist with Radio Free Europe/Radio Liberty where he planned and implemented a broadcast management system and assisted in developing administrative information systems migration planning prior to its relocation to Prague. His technical experience includes the major languages and internet protocols and he has worked on or developed for Mackintosh, Dos, Unix and Windows NT Servers and BackOffice applications.
CFO: Dr Michael Gordy is an independent organisational strategy consultant who specialises in information and telecommunications technology and management development. He is a founding board member of AJA International which develops and markets software solutions and consulting tools as well as being Director General of Transitions and Perspectives Ltd, a brokering and consulting company. He has worked as an External Consultant for many years on such varied projects as health care, digital equipment and the social implications of social technology for the United Nations Research Institute for Social Development.
The key principals have been responsible for many advanced technology products including the installation and operation of large international telecommunications networks, distribution of client/server application, Internet projects and object oriented technology.
BRIEF FINANCIAL DATA:
This company is a start up and has no historical trading or revenues.
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