AL - Quarterly (to Jan 31, 1999) is on SEDAR + Discussion/Analysis
Dated: March 31, 1999
Posted: April 1, 1999
It went up yesterday evening sometime - after 9.07 PM EST <g>.
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Also posted as 'Other', April 1, 1999
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Management Discussion and Analysis
Napier International Technologies Inc. is please to report continued growth in sales revenues and ever-increasing customer acceptance and market penetration. Efforts to enter into the large industrial market continue and although entry into this market has taken longer than expected, initial market response has been as expected.
Napier's marketing team, both in Canada and the USA continue to make im-
pressive penetration into the aerospace refurbishing industry. We continue to average 12 new accounts per month in the USA and Canada, primarily from the aerospace industry. The company currently has 138 active accounts. 74% of these accounts are aerospace related and 7% are from the marine industry.
Napier's research and product development group continues to break new ground in the development of environmentally friendly products for use within ever expanding industrial markets. Previously the company announced the launch of a paint equipment cleaner that is non-hazardous, non-toxic, is not regulated by HMS or WHMIS, contains no toxic or hazardous airborne components, has a neutral odor or will not burn human skin. This cleaner is the first example of how Napier's research and development team, through interaction with industry, has been challenged to solve some difficult environ-
mental problems. Through cooperation with a leather manufacturer, Napier has developed a product for stripping coatings from leather. Our first sale of this new product was made in mid March 1999. With numerous other projects in various stages of development, we anticipate being able to increase our exposure to other niche markets.
Other Developments
Napier International Technologies Inc., (NIR. TSE) is pleased to report that it has acquired a controlling interest in Consolidated Ecoprogress Technologies Inc., (CES-V). The acquisition has been initiated through the purchase by private placement of 2,376,471 common shares at an average cost of $0.295 per share and 1,776,471 share purchase warrants exercisable at an average price of $0.31 per share. In addition Napier has secured the first right of refusal to participate in up to 80% of any funding require-
ments by Ecoprogress for the next two years.
As a result of the private placement, Napier owns 38% of the issued and out-
standing shares of Ecoprogress or 41% on a fully diluted basis. Napier's nominees now hold two of five directorships on the board of Ecoprogress.
Ecoprogress has acquired exclusive licensing rights in Canada and is negotiating to acquire additional distribution rights for a technology involving the manufacturing of a water soluble and biodegradable plastic-like film known as “B-9”. The B-9 film is a composite material, which is impervious to water on one side like plastic yet it is completely soluble and biodegradable when contracted by large volumes of water on the other side.
For more information on the CES.V acquisition, please see Napier's January 12, 1999 press release.
Financial Performance
The company's Annual General Meeting was held at the Terminal City Club on January 20, 1999. Members present in person and by proxy voted 98.4% in favor of a motion to reduce the paid-up capital of the company by $6,652.083 and that such a reduction be effected by cancelling paid-up capital that is lost or is unrepresented by available assets of the company.
This reduction of paid-up capital received approval from the Supreme Court of British Columbia on March 30, 1999 and the company's Balance Sheet for January 31, 1999 has been adjusted to reflect these approvals.
For the quarter ended January 31, 1999 the company recorded net revenues of $369,018 and a net loss of $265,393 or $0.01 per share. These results compare with net revenues of $86,176 and a net loss of $157,676 or $0.07 per share for a similar period last year. Net revenues for the six months ended January 31, 1999, $690,954 are just over 5 times larger than for the first six months last year. The company also continues to show growth, quarter over quarter for its sixth consecutive quarter, and in January 1999 recorded sales volumes and revenue increases of 76% and 79% respectively over our best previous month, (September 1998) for its patented family of paint lifting products. Gross revenue for the month of January of $216,000 was 67% higher when compared to our best previous one month gross revenue. (September 1998).
Napier International Technologies Inc. is pleased to report that 1,959,091 warrants were exercised between March 1 and March 16, 1999. Of the warrants exercised, 296,591 warrants were at $0.20 and were exercisable until October 1, 1999, 785,000 warrants were at $0.23 and were exercisable until March 16, 1999, and 877,500 warrants were at $0.40 and were exercisable until March 16, 1999. The exercise of these warrants contributed $591,000.00 to the company's treasury.
A total of 82,500 warrants at $0.40 were not exercised and expired at the close of business on March 16, 1999.
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