Here is the text of Sean's Report
Tucson, AZ April 12, 2013 -- Bourque Industries (Pink Sheets: BORK), an advanced materials science company that develops and produces metal alloys and related product applications using our revolutionary metal-alloying process, Kryron, announced today that the Company has updated shareholders on the corporate side of the business on the Company’s website at bourqueindustries.com/latest-news-press-releases. The update includes the following items:
· Plans for Future Fully Reporting Status
· Effort to Removal of DTC Chill
· New Corporate Initiatives and Task Forces
· Prospective Funding
· New Product Launch
· Growth Strategy
· Management changes
· JBT Contract
Fully Reporting Status
The order of events that we have to go through to become a fully reporting Company is as follows:
1. Complete and File a SEC Form 10, and clear with the SEC
2. Prepare and submit Audited financials to accompany the Form K
3. File a 15c211 with a market maker to move to the OTCBB
At the direction of the new Board of Directors, we have re-initiated work toward becoming a fully reporting company. We can give no definitive timeline, but suffice it to say, we have begun an internal audit process and look forward to completing and filing a Form 10 as required for Fully Reporting status as soon as practical.
Removal of the DTC Chill
Last year, Bourque Industries was designated Trade for Trade and exited from the DTCC’s Continuous Net Settlement System (CNS), in management’s view without reason or justification. We have filed various documents with DTCC and are in a dialogue with them in an effort to lift the chill on our common shares and return to non-chilled status. Despite the DTCC chill, and because of investor interest and enthusiasm for the Company and its new technology, we have been able to maintain excellent liquidity in our stock, in the public markets.
Management remains optimistic that the DTCC will lift the chill on Bourque shares in the near future.
New Corporate Initiatives and Task Forces
The first action of the newly formed Board of Directors is to complete an internal audit of all financial and stock transactions, as well as all material contracts. We are doing this as a first step to present a completely audited package to the auditors and legal team, who will help guide us to Fully Reporting status. Independent committees were formed by the Chairman. There is no ETA on the results of the reports; however, they will be completed prior to presenting a full package to the auditors and the SEC.
Task Forces
The newly constituted Board of Directors is enthusiastically engaged in the new direction and success of Bourque Industries. In order to achieve success, the Board has set up three independent separate committees, known as task forces, to focus the Company forward, while addressing issues of the past. At the request of the Chairman and unanimously approved, the board has established a financial and equity audit task force, a sales contracts task force, and a task force to address previous obligations entered in on behalf of the company.
The financial task force is investigating all banking and equity transactions prior to the constitution of the new board of directors. The sales contracts task force is reviewing all agreements made on behalf of selling, marketing, licensing and other revenue generating agreements, and deciding if these are in the purview for the forward looking company. The obligations task force is reviewing all financial obligations on and off the balance sheet that may have or will encumber the Company, and will attempt to resolve any and all outstanding obligations.
The task forces are expected to report their findings to the Board on a continual basis, until the Board is comfortable that the task force has addressed each and every concern assigned.
FUNDING
Aside from being a non-reporting Company, Bourque Industries’ biggest issue was funding when I took over as Interim CEO. This is utmost and of critical importance. Our newly formed Board has many well qualified connections for funding opportunities, and I expect to report on these as they become concrete funding transactions.
One transaction that has occurred is an amendment to our CNT agreement, which accelerated their royalty payments to us. In return for the acceleration, we agreed to release them of a future minimum royalty payment and allowed them to explore currently dormant contracts with other possible Kryron technologies. The transaction, led and negotiated by our corporate counsel, has positively affected our ability to sell, market, and distribute product and improve our cash positions to fund daily operations.
In addition to above, since the confirmation of the new Board, we have located numerous institutional investors and funds which have been introduced to the Company. Management and the Board are in the process of considering various proposals to bring additional capital to the Company. There is no guarantee of success in closing on new capital infusion, or closing on commercially reasonable terms, but management is optimistic that the Company will be successful in this effort.
Assuming additional funding is achieved, the primary use will be for growth, sales, marketing, testing, new product launches and initiatives.
I have never been more confident in the strength of Bourque Industries. I am confident that this Company will re-emerge as a much stronger Company once we are fully reporting, which will provide better access to the capital with attractive terms needed to grow aggressively.
NEW PRODUCT
1.We currently have what has been called the “Stand Alone” Terminator Armor Level 3. This has been featured on TV and shown around the country getting shot over 100 rounds. This particular product weighs less than 8 lbs.
2. Our other product at 6 lbs. is called an “In-Conjunction” or ICW (In-Conj. With). This is a level 3 protection strike plate when used (WITH) level 3A soft body armor. 3A is the soft “vest” you may see police wear today; they only stop handguns. Even if shot, it breaks ribs, has shocked the heart, caused infections and other maladies. Think of a trampoline, the bullet goes in and the fabric brings it back out. OUR ICW at 6 lbs prevents all of this by using a hard armor and is able to stop all rounds even up to the .308.
3. This leads us to a new product in this market. We have been able to make the Kryron formula that gives us a stronger strike plate. We now have a LEVEL 3 Stand Alone plate that weighs less than 5 1/2 lbs. In summary, we have cut the weight by 25% and still stop the multi impact .308 rounds without any 3A body armor behind it. The only down fall of this plate vs. what we have had in the past is that it will not take 100 rounds. It will take about 8 shots from a .308, 10 from an AK-47 and 10 from a hand gun. We have listened to the Law Enforcement customer and built what they have demanded. We now have a light weight armor solution that has no ricochet, no spall, is multi-impact and affordable in today’s market
4. Heat Sinks and electrical Kryron alloys have also been enhanced and are scheduled for USA testing. I’ll provide further detail in the next report.
Growth Strategy as a Fully Reporting Company
I believe Bourque Industries will secure the financing that is needed to proceed to the next phase of growth. I also believe sales and licensing agreements will provide substantial revenue very shortly in multiple industries.
Couple that with achieving Fully Reporting status, we believe we are positioned to move forward on multiple revenue growth prospects, including the ability to process larger orders.
Management Changes
As has been previously reported, management made significant changes as or March 7, 2013. Since this event, the Company, at the leadership of the Chairman, has taken numerous actions on the management structure and payments. First, the Company will no longer compensate John Bourque his annual salary per year as CEO. In addition as reported on March 19, 2013, John Bourque’s shares have been entered into a lock up agreement. Per that report, the Lock-Up Agreement was approved by the Board of Directors on March 19, 2013, and is now in place. The Lock-Up Agreement substantially removes Mr. Bourque from a position of control of the Company for the period of its term and gives the new Board of Directors freedom to press forward with reorganization of the Company’s business and the marketing and sales of various contemplated product lines based upon the Company’s Kryron alloy material.
A change of officers has occurred as well, with the withdrawal of Carol “CJ” Condon as Corporate Secretary, and the appointment of Matthew L. Schissler to fill that position. Ms. Condon also resigned from the Board of Directors.
The Company’s Officers are now as follows:
Sean Floyd, President and Interim Chief Executive Officer
Charmaine “Sandy” Berry – Treasurer
Matthew L. Schissler - Secretary
The Company’s Directors are as follows:
Matthew L, Schissler, Chairman and Secretary
Charmaine “Sandy” Berry
Joel Heffron
Raymond Humphrey
Michael Kotelec
Scott Stover
Brent Willis
JBT Contract
On January 31, 2012, Shenzhen JBT Electronics Company of Guangdong China announced a non-binding letter of intent with Bourque Industries. On February 4, 2013, Bourque Industries announced its first purchase order with Shenzhen JBT Electronics Company of Guangdong.
On April 4, 2013, the Board of Directors determined it was in the best interests of Bourque to terminate the letter of intent with JBT Electronics Company, and the Company has done so.
Regards,
Sean Floyd
Interim CEO
About Bourque Industries
Bourque Industries is an advanced materials science company that develops and produces metal alloys and related product applications using our revolutionary metal-alloying process, Kryron. Kryronized alloys have shown global potential for paradigm-shifting applications across a wide range of industries, including ballistic armor, electrical, aviation, automotive, mining, medical devices, agriculture and heavy equipment, consumer electronics, and more. Our fundamental goal is to establish broad market penetration across a wide range of industries. Please visit www.bourqueindustries.com.
CONTACT:
For more information and to learn about Bourque Industries and Kryron applications, please contact
Sean Floyd, Interim CEO: 1-877-379-6551 or 520-624-5248
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