Leslie, despite the probable inability to use the already-shipped holos, the October 26 release made it very clear that payment is expected for them and the date targeted was 4-6 weeks from October 26 (3rd paragraph below). If HDI now does not expect to receive payment as they so recently put in the PR they owe shareholders an explanation. That is why I still think the email you received needs clarification. Here is the PR from October 26:
Tuesday October 26, 1:09 pm Eastern Time
Company Press Release
SOURCE: Holographic Dimensions, Inc.
Holographic Dimensions, Inc. Negotiates Long Term Supply Contract For Russia 601 Program
MIAMI, Oct. 26 /PRNewswire/ -- Holographic Dimensions, Inc. (OTC Bulletin Board: HGRM - news) has renegotiated its supply contract for the Russia 601 hologram authentication program. On February 2, 1999 Holographic Dimensions, Inc. announced that it had been awarded the contract to supply holographic security devices for the Russia 601 hologram authentication program. The Company initiated production and began delivery of the holograms to Spetsznak; the Russia Company formed according to the 601 Decree to exclusively supply the holographic authentication devices for the 601 program.
On June 30, 1999 Holographic Dimensions announced that it had been instructed by Spetsznak to stop production of holograms destined for use on alcoholic products, as alcohol had been removed from the 601 program and, the temporary suspension of the Project. In light of this development, and the deteriorating condition of Russian financial markets, the Company engaged Potomac International Inc. on July 6, 1999 to meet with the Russian Government and Spetsznak to evaluate the situation and to insure the Company's position and further its interest in the 601 project.
Subsequent to the engagement of Potomac International, Inc. the Company was advised by Potomac that Neftechimbank Bank, which had provided the Company with a bank guarantee for the project, had become insolvent. At the Company's request Potomac conducted a physical inventory of all holograms and verified that all were in fact still in the Company's possession, in customs.
On September 20, 1999 the Company entered into a new agreement with Spetsznak which the Company believes could generate more than 40 million dollars in annual production during the first calendar year, and a first right of refusal on subsequent production of holographic security devices as other consumer products are incorporated into the 601 program for the duration of the program.
On October 2, 1999 the company finalized and executed all of the documents necessary to insure the working relationship between Holographic Dimensions, Inc. and Spetsznak. Spetsznak has also agreed to pay for all materials delivered before the holograms are released from customs. The Company expects that payment will occur within the next 4-6 weeks in order to provide for timely implementation of the 601 program. Additionally, it is anticipated that the payment for all subsequent production of holograms for the 601 program will be guaranteed by a Multilateral Bank.
According to W. Wayne Beall, Managing partner of Potomac: ''While the collapse of the primary Russian Bank involved in the 601 Project, Neftechimbank, dealt the Project a difficult setback, the renewed efforts of our Russian partners and our international business development advisors have significantly advanced the viability of this substantial supply contract.
''The future of the Russian 601 Program (Holographic Confirmation of Product Conformity) has moved closer to a practical realization for Holographic Dimensions, Inc. During recent negotiations conducted in Moscow on behalf of HGRM, several positive advances have been made and our Russian partners are encouraged by the introduction of renewed interest by Russian Government authorities as well as the commitment of financial support for the Project, once the 601 Decree has been reinstated.
''The Russian Industrial Trade Bank (Promotorgbank) has agreed to provide our Russian partners with a significant trade credit facility and efforts are underway to successfully engage the US EX-IM bank on behalf of HGRM, as soon as the 601 Decree as been reinstated.
''With a combined effort being led by our Russian partners, the anticipated renewal of the Decree is expected to take place during the last half of November or early in December, but in any case prior to the Russian Duma being recessed for the nationwide elections in December.
''Upon renewal of the Decree, shipments of the Russian holographic image will be renewed. We will be required to again commence production of the Russian holographic images. Anticipated volumes should be sufficient to meet a projected demand level of between 1 and 1.25 billion holograms per quarter, to be delivered in each calendar year for the next 5 years.'
Holographic Dimensions, Inc. is a vertically integrated manufacturer of holographic imagery. The Company's products are incorporated into a variety of security products including, but not limited to, credit cards, negotiable documents, event tickets, transit passes, and consumer products for marketing. End users of the Company's products include Merck, Lilly, Levi Strauss, Cross Pens, The Coca-Cola Company, and Hoechst amongst many others.
This release may include ''forward-looking statements' within the meaning of Section 27A of the Securities Act of 1933 and Section 21E of the Securities Act of 1934. Although the Company believes that the expectations reflected in such forward-looking statements are reasonable, it can give no assurance that such expectations will prove correct. In particular, the Company's contract with Spetsznak is subject to various risks including political and economic uncertainties in Russia, the Company's ability to finance and produce the product, and various difficulties in conducting business in a diverse and unsettled international marketplace. For more information visit us on the World Wide Web page at hgrm.com or contact:
SOURCE: Holographic Dimensions, Inc.
(OTC BB:HGRM.OB - news)
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