Burt - It has occurred to me that if one of NCII's new business contacts (Lucent, Intel) feels that NCII's technology is very worthwhile (we assume they DO, or they wouldn't be hanging around), then why don't THEY provide some financing to NCII's coffers? Or is it that they're saying to NCII - "Well, show us what you can do, and if we like it we might be interested in buying it."? If it's the latter, then NCII still has to fund development, and that's where the problem arises. Yes - they've got a great idea, but they have NO money to develop it. That leaves these choices: 1. Get a loan (but they probably can't because they don't have any steady income stream), 2. Find a private investor who will bankroll the deal (but who would do it with NCII's track record?) 3. Get a corporate partner (which is what I've suggested above, but they've probably tried that already without much luck), 4. Issue more stock (which is what they are proposing).
NCII's big problem, as I see it, is NO steady income stream to fund on-going development. When I first invested in NCII they were profitable and had steady income from topnotch companies for which they did contracted assembly work. Looking back, it seems to me the biggest mistake was giving up this business and the income it produced. Since it is certainly not feasible for NCII to build another assembly line, it seems they will have to look for a partner who is willing to finance them with a large percentage ownership of the company being handed over to the partner as payment. Perhaps this is what they have in mind if we authorize up to 200 million shares, and perhaps this is their only way out.
Betty
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