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Gold/Mining/Energy : Napier International Technologies Inc. (T.NIR) -- Ignore unavailable to you. Want to Upgrade?

To: Neil Irwin who wrote (1993)	1/4/1999 8:35:00 PM
From: AL	Read Replies (1) \| Respond to of 2444

Hi Neil. ( Happy New Year ) ( I hope )Item # 3: 3. Approval to Issue a Number of Shares by Private Placement that Exceeds 25% of the Company's Issued Share Capital. According to the circular, TSE regulations state that "one or more private placement transactions during any six-month period must not exceed 25% of the number of shares outstanding (on a non-diluted basis)". Why is Napier looking to raise more than $9M (25% of 27M shares x $1.30) in capital now, when the sales are increasing by 20% per month? Why are they looking at only private placements (with parties at arm's length of course)? I will have to re-read the info, but I think they want to be able to raise money for another possible acquisition, if the need arises. The last placement they made a short while ago, was to buy the controlling interese in CES. At the time of the pp, I asked the same question. Why the pp after B.Aelicks stated in the interview that there was no need to raise more money with the current growth rate. Later I find out the reason. Please note: I am not in defence of these actions by the company, and I am NOT very pleased with the Q1 results. Also note that the NIR pp raised ( I think ) 1 million $$ and the pp with CES was for 250,000.00. The extra cash....makes the balance sheet look stronger. I was told in July sales were at about 100,000 / month. Then we were told sales were increasing @ 20% per month. From the actual sales this does not jive. I was told NIR was operating in the black in July. Not so. Net sales: 321,936 COGS: 222,329 This isn't a 50% profit margin either. So here I sit at the crossroads. I am very unsatisfied with performance so far. Even without ICI, sales should have been much better than what I was led to believe. Yes, I still think there is a great potential. But, will Q2 reveal that the ICI order is actually much smaller than one would expect? Mysteriously, the size cannot be revealed. I think they owe it to us. I/we all have been patient. Without some good news VERY soon, I'm afraid my money can do much better elsewhere. Good luck, Al