Here is an update on NPCT from the CEO that was released yesterday:
Dear Investor to Investor readers:
Paul Metzinger and Herb Neushaus have just returned from their most recent
trip to Europe, the third in the last couple of months. I spoke to both of
them today and was promised a shareholder update on the progress made
(attached). I can tell you that they are now in talks with five different
companies, which is why Paul told me, when he called me from Zurich, that
things were going five times better than he originally anticipated on this
trip. Things are still in a very confidential state of affairs on these
companies, but there will be news out as soon as it is feasible to release it
without endangering any negotiations in progress, and hopefully, without too
long of a wait.
MEMORANDUM
TO: KATHY KNIGHT-MCCONNELL
FROM: PAUL H. METZINGER
DATE: APRIL 5, 1999
RE: NANOPIERCE TECHNOLOGIES, INC.
Kathy:
I thought it appropriate to provide to you, because of your continuing
interest in the business affairs and market of the common stock of
Nanopierce Technologies, Inc., a brief overview of the current state of the
Company's activities.
Over the last two months, we have spent a considerable amount of time in
Europe pursuing the objective of implementing the utilization of Nanopierce
Connection Technology in the Smart Card Industry.
During our recent trip to Europe, March 20th through April 1, 1999, Dr.
Herbert J. Neuhaus, I and a business colleague were afforded the
opportunity, upon invitation, to present the Nanopierce Connection
Technology to a number of leading companies in the Smart Card industry. We
had nine meetings in ten days in six European cities. In most instances we
met with the key decision-makers of those companies.
Based upon these meetings Dr. Neuhaus and myself returned to the United
States with a heightened level of conviction that we have successfully
persuaded such companies about the value of the Nanopierce Connection
Technology for utilization in contactless Smart Card / Smart Label
applications. I think it fair to say that based upon the technical
presentations made, there is a developing professional sense that Nanopierce
Connection Technology may in fact be a superior connection technology with
substantial cost competitive benefits. This would apply not only to Smart
Card manufacturers, but also the manufacturers of Smart Card production
equipment and other suppliers to such firms.
The Company believes that it can conclusively demonstrate to such companies,
as well as, other industry participants that Nanopierce Connection
Technology will provide superior technology benefits, as well as, provide a
more advantageous cost competitive edge over existing connection
technologies.
The Company believes that it has made a convincing demonstration that
Nanopierce Connection Technology may provide the best connection solution to
a problem plaguing contactless smart cards, i.e. assuring a highly reliable,
cost effective, connection between the connecting pads on the computer chip
and the antenna. If successfully applied in usage, Nanopierce Connection
Technology will, in our opinion, not only substantially reduce the cost and
complexity of manufacturing contactless smart cards, but also will simplify
the design and cost of the equipment used to manufacture the cards.
While in Europe an individual with an international reputation as an expert
in Smart Card Connection technology accompanied us. His efforts opened many
doors to some of the leading players in the entire industry. This
individual may play an increasingly significant part in the development of
our strategic business plan to implement Nanopierce Connection Technology in
the contactless Smart Card / Smart Label markets.
Based upon our discussions, we believe that we will enjoy in the very near
term the first, direct, immediate application for testing qualification of
the Nanopierce Connection Technology to the Smart Card industry. As you are
aware, there is voluminous material published on the size and the growth of
this important world market. Growth in this industry can only truly be
characterized as explosive.
In order to better enable us to adopt the proper tactics to implement our
strategic business plan, we are participating in the Prismark Group, LLC
study. We are deeply honored to be included as one of the select few
participants in this study.
Nanopierce continues to pursue financing from multiple sources and we are
encouraged by the attention of financial institutions, which have expressed
interest in the Company and its Nanopierce Connection Technology. As
awareness of our activities in Europe spreads, I sense a growing perception,
which is not unjustified, that Nanopierce is on the verge of creating a real
and unique opportunity for the direct implementation of its Nanopierce
Connection Technology.
We shall remain almost exclusively focused on the implementation of the
Nanopierce Connection Technology to the contactless Smart Card / Smart Label
industry. While there are other industries within which the Nanopierce
Connection Technology can be successfully and commercially applied, we do
not which to dissipate management's efforts or time or the Company's
financial resources to pursue other opportunities. We are too small to
capitalize on all of the available alternatives. After serious analysis and
discussion, we have concluded that the most successful application of the
Nanopierce Connection Technology now fortuitously and fortunately lies in
one of the world's largest markets experiencing unmatched growth rates.
The Company has as of today, 16,420,564 shares issued and outstanding. We
have often been asked by many people what we, the Company, believe the float
of the stock to be. The term float can be defined numerous ways and is at
best a nebulous concept susceptible of many computations. However, we have
reasonable grounds to believe that there are approximately 5,000,000 shares
in the actively trading float. As I stated, this is only a guesstimate and
should not be relied upon as a factual guarantee or a representation of
fact. Many persons engaged in the trading market, in many instances, are
themselves more capable of accurately determining the actual float of a
company's common stock. However, because many people have asked for our
opinion we felt at liberty to at least express our thoughts.
We are aware of the fact that there have been persons, who have recently
filed Notifications of Intent to Sell pursuant to Rule 144. These filings
are not viewed as negative to the Company or to the market for its common
stock. Most of these individuals are friendly to the Company and have
expressed their continuing desire to be supportive of the Company and engage
in orderly sales so as to minimize the disruptive or depressive effect on
the market.
Finally, we are deeply appreciative of the continuing support of persons,
such as Billington's Publications, Inc. Stock Enterprises and other similar
organizations. We are experiencing an expanded recognition of the Company
and its technology, reflected in recent market activity. Dr. Neuhaus and
myself proceed forward with an enhanced level of enthusiasm and remain
undaunted in our efforts to exploit this unique opportunity. We remain
convinced in the correctness of our approach and the value of the
technology.
The expressions, opinions and beliefs made in this memorandum are strictly
my own, shared however, by Dr. Herbert J. Neuhaus.
That's the whole of it.
Kathy Knight-McConnell
Investor to Investor
investortoinvestor.com
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