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Hi Clouser, Just want to let you know that the OS shares is not 73.44 million. It is already at 84.2 million. But it is not as bad as other stocks out there. Welcome to the board and NMKT. I saw this link and would like to share to the board. I believe posted this ealier but just re-posting again Good luck to all and peace on earth.
Augie
http://www.dydd.org/Portals/57ad7180-c5e7-49f5-b282-c6475cdb7ee7/nmkt.doc
DYDD Member: Monumental
Date of Recommendation: 3/25/05
Company Name: NewMarket Technology, Inc.
Ticker: NMKT
Last Closing Price: $ 0.48
My Cost Basis Disclosure: $ .49
Market Cap: $41.2 million
ST Target (3 to 6 months): $ .90 – $1.00
LT Target Price (1 to 2 years): $ 2.25 – 2.75
Risk (High, Medium or Low): Medium
Current Price: $0.48
Shares O/S 84.2 Million
Average Daily Trading Volume 836,045
Technicals-- Bottom of a trading channel. Top of trading channel is 40% higher than current price.
NewMarket Technlogy launched a business plan to introduce emerging communication technologies to market using a financing model for early technologies and an approach to creating economies of scale through a specialized service and support organization intended specifically for the emerging technology industry. The Company posted six consecutive profitable quarters through 2003 and established an annualized $15 million in revenue and reported revenue of $2.3 Million for the year. In 2004, the Company diversified its communications technology offering into the Healthcare and Homeland Security sectors with the respective acquisitions of Medical Office Software Inc. (MOS) and Digital Computer Integration Corp (DCI). NewMarket Technology has forecasted revenue of $25 million for 2004, to be reported in the Company's next 10-K SEC filing, and 2005 revenue of $75 million. The Company has expanded sales into Asia, Latin America and Canada through the acquisitions of Infotel Technologies in Singapore, RKM IT Solutions of Caracas, Venezuela, and Logicorp respectively. NewMarket has acquired six majority interests and two minority interests in eight entrepreneurial early stage technology companies. The company recently announced its first spin-off with the acquisition by Defense Technology Systems (OTCBB:DFTS) of NewMarket's Homeland Security subsidiary, DCI, for stock. NewMarket shareholders of record on July 1, 2005, will receive stock in DFTS at an estimated distribution ratio of 1 DFTS share for every 10 NMKT shares owned. The Company intends to announce two additional dividend distributions in 2005.
Recent developments
• NewMarket Technology recently submitted an application for listing on the American Stock Exchange (AMEX)
• Fourth Quarter and Annual Report for 2004 to be filed by March 31, 2005. Company has forecasted $25 Million for 2004 versus $2.3 Million in 2003.
• NMKT has projected a 30% Quarter to Quarter (Fourth Quarter, 2004 to First Quarter, 2005) revenue growth to over $10 Million. First Quarter financials to be filed by May 15, 2005.
• Signed a $5 million Strategic Sourcing contract with an online financial services firm. Strategic Sourcing is NewMarket's technology services subsidiary specializing in the integration and support of mainstream and emerging technology solutions. The Strategic Sourcing division (www.newmarketsourcing.com) integrates and supports NewMarket's in-house emerging technology product line, in addition to the products and services of partner technology companies
• NewMarket Technology Inc. announced receiving a Provisional Patent on Netsco's Wireless Value Asset and Shipment Tracking System (VAST). Netsco, a NewMarket subsidiary, is a software product and services company that specializes in mission-critical distributed computing solutions for large scale enterprise applications. Netsco jointly developed the system with Innova, Inc. In addition, Netsco has developed a host of proprietary Radio Frequency Identification (RFID) systems and is currently engaged in a number of RFID pilot projects around the world. The Value Asset and Shipment Tracking System is a wireless monitoring, tracking, evaluating and response system where any product and any system can be monitored and tracked globally using multiple wireless technologies. The VAST has multiple industrial and military applications.
• Netsco, a Sun Microsystems (Nasdaq:SUNW) Partner, has conducted several international Executive RFID Summits and has won a number of very strategic RFID pilots jointly. Netsco has been the key contributor in Sun Executive RFID Summits in Turkey and Israel.
• NMKT announced the definitve agreement to acquire Gaozhi Communications of Shanghai, China with $3 Million in annual revenue and a forecast of $10 Million revenue in China for 2005
You are absolutely right Jen. .50 more to go and we can all head to Vegas...:) The high roller group is open for pleasures. Good luck to all and peace on earth.
Augie
Interesting link... Good luck to all and peace on earth.
http://www.dydd.org/Portals/57ad7180-c5e7-49f5-b282-c6475cdb7ee7/nmkt.doc
Augie
Hello All, Just spoke to Rick and boy could he talk and talk :) I asked about AMEX and Amex is waiting for the 10K from the company. So that one is still up in the air. I guess no news is good news rather than having a news of getting denied :) He also talked alot about other things we already knew from PR's that was released awhile back. I have mentioned to him that some of the longs on this board wanted to be on the mailing list. He said that if I can get to together a list of this individuals with names and email addresses he would be happy to add you on the list. So, whoever wants to be on the list please send me your name and email addresses and I will forward it to Rick and make sure that you are included in the mailing list. Maybe next time we can all get a list of questions and I will be happy to ask them for you so we can have all our questions answered.
Good luck to all and peace on earth.
Augie
Hello fellow Longs, Just read the new release. I have a feeling that we are going to be late with the filing for Q4. I hope that we have a good number for Q4 and follow it up with another good number for Q1. That would be a double hitter and for sure our share price is going to go upways. I was wondering how come Phil did not mention anything about AMEX listing. I will email Rick Lutz and find out. Hang in there folks. Glad I was able to load up the day before. Good luck to all and peace on earth.
Augie
8K release March 29, 2005. Good luck to all and peace on earth.
Form 8-K/A for NEWMARKET TECHNOLOGY INC
--------------------------------------------------------------------------------
29-Mar-2005
Change in Accountant, Financial Statements and Exhibits
Item 4.01 Changes in Registrant's Certifying Accountant.
On February 23, 2005, the Board of Directors of NewMarket Technology, Inc. (the "Company") was notified by Durland & Company, CPAs ("Durland") that it was resigning as its independent registered public accountants due to the fact that Durland only has one partner and, as a result, cannot satisfy the partner rotation requirement. On February 23, 2005, the Company engaged the firm of Pollard-Kelley Auditing Services, Inc. ("PKASI") to serve as its independent registered public accountants for the fiscal year ended December 31, 2004.
During the two fiscal years ended December 31, 2003 and 2002 and through February 23, 2005, (i) there were no disagreements between the Company and Durland on any matter of accounting principles or practices, financial statement disclosure or auditing scope or procedure which, if not resolved to the satisfaction of Durland would have caused Durland to make reference to the matter in its reports on the Company's financial statements, and (ii) Durland's reports on the Company's financial statements did not contain an adverse opinion or disclaimer of opinion, or was modified as to uncertainty, audit scope or accounting principles; provided, however, Durland issued a going concern opinion with respect to its report on the Company's financial statements for the year ended December 31, 2002. During the two fiscal years ended December 31, 2003 and 2002 and through February 23, 2005, there were no reportable events as the term described in Item 304(a)(1)(iv) of Regulation S-B.
During the two fiscal years ended December 31, 2003 and 2002 and through February 23, 2005, the Company has not consulted with PKASI regarding either:
1. The application of accounting principles to any specific transaction, either completed or proposed, or the type of audit opinion that might be rendered on the Company's financial statements, and neither a written report was provided to the Company nor oral advice was provided that PKASI concluded was an important factor considered by the Company in reaching a decision as to the accounting, auditing or financial reporting issue; or
2. Any matter that was either subject of disagreement or event, as defined in Item 304(a)(1)(iv)(A) of Regulation S-B and the related instruction to Item 304 of Regulation S-B, or a reportable event, as that term is explained in Item 304(a)(1)(iv)(A) of Regulation S-B.
The Company provided Durland with a copy of the disclosures it is making in response to Item 4.01 on this Form 8-K, and has requested that Durland furnish it with a letter addressed to the Securities and Exchange Commission stating whether it agrees with the above statements within 10 business days of the filing of this Form 8-K. Such letter is filed herewith as Exhibit 16.1.
Item 9.01 Financial Statements and Exhibits.
(a) Financial statements of business acquired.
(b) Pro forma financial information.
(c) Exhibits.
Exhibit Number Description
-------------- --------------------------------------------------------------
16.1 * Letter from Durland & Company, CPAs dated March 29, 2005
-----------------
* Filed herewith
Hey Street, good to hear from you. Well, I guess I need to live it up a little. I am confident that Phil is going to take us to the next level this year or his Word would mean nothing if he does not fulfill his projections and goals. I have been loading and of course taking profits during the rise and fall of the price. Just playing the game with the rest of the investors out there. I have been holding NMKT/IPVO for a while now and it has been this way all the time whenever its time to release Quarterly earnings and so forth. So since then I have been riding the waves. That is how I have accumulated all the shares with the company. But now, all my profits are back into NMKT so when the company goes belly up, which I am sure is not going to happen then I would have lost all my profits and capital since I started with IPVO/NMKT but if this puppy goes above a dollar again... I will be a happy person and would invest or put a down payment in a vacation home in Vegas. Then you can call me a high roller :) Waiting for that moment to come and all the LONGS are welcome to stay when they are visiting the Sin city :) Phil makes us be high rollers would you please...
Good luck to you and all.
Peace on earth,
Augie
Eastunder, I do not have any confirmation but with all the PR's that Phil Verges released for the past month or so...I would expect him to be true to his letters, releases etc... It is his Integrity, business etiquette, ethics and all that is at stake. Money can come and go but personal value, respect is hard to recover. The ONLY reason why I am still a shareholder of NMKT is because of Phil's Word of HONOR, vision, goals and of course the numbers :) NMKT is going to have this coming year not to mention profit and dividends. I also like Mr Phil Verges's background and his Management Team. Not to mention the China, Latin America deals. Just be patient and I am sure NMKT will be fruitful this year. Phil has not disappointed me yet so I am still holding for the long haul. But of course, need to take some profits now and then, then buy in again when it is on sale. Good luck to you Eastunder and hope that NMKT will make us all Longs live comfortably this year and years to come.
Peace on earth,
Augie
Darn it. I should have waited for today do buy my additional 70K. I would have been in the nice round figure of 200k total. Oh well, you win some and you lose some. I hope today's price is the bottom because I will not have funds till Friday and I will not be able to load up before the Q4 yearly earnings due this Thursday. Well, Good luck and thanks for all the wishes and I hope NMKT will make us all live comfortably in the coming months and years to come. Best to all and peace on earth.
Augie
Pete, Street, East. Wish me luck. My shares are now close to 200K. Some at 30's, 40's 50's but my biggest chunk is at 30's and now 40's. I hope Phil does not disappoint us Longs cause it would be ashame if he did. That means all his PR's are just all fluff as the bashers would put it. I am going to ride it out till the 1Q and see where it takes me. Right now I am totally invested with NMKT. All my profits from last year's ride to $1.35 is back with NMKT with now a bigger holdings (shares) in the company. It is like Las Vegas... My gut feelings is that we will do good but and again like I said. It is a gamble. Anyway, Good luck to all of you who are in the same boat as I am and one can only hope that NMKT makes us all live comfartably this year and years to come. GOod luck to all and peace on earth.
GO NMKT!!!!!!
Augie
Just added 70K today. I hope this coming 2 days will not be a disappointment to all Longs. I am banking on the Q4 which is due any day now. Mr. Verges better not disappoint us. Thus far, he has not so I don't think he should start or he will lose a lot of loyal investors. Good luck to all the longs and peace on earth.
From IR sent last Friday. Good luck to all and peace on earth.
Augie
-----Original Message-----
From: LCGroup [mailto:lcgroup@mindspring.com]
Sent: Thursday, March 17, 2005 1:49 PM
To: LCGroup
Subject: Defense Technology Systems (OTCBB:DFTS) in Upcoming Homeland Security Issue of Wall Street Transcript
Defense Technology Systems (DFTS) will be in the forthcoming Homeland Security issue of the Wall Street Transcript discussing its acquisition of DCI and other developments.
Answers To Frequently Asked Questions (FAQ's)
· Future corporate developments of DCI will be announced under DFTS
· Stock dividend in form of DFTS stock to be distributed to NMKT shareholders after July 1
· NewMarket Technology (NMKT) Fourth Quarter Financials and Annual Report pending
· NMKT First Quarter, 2005 Financials expected in eight weeks
· NewMarket Technology's AMEX Application still pending with dialogue with the AMEX and company on an ongoing basis. Request for comments have been exchanged.
· For background and due diligence of NMKT shareholders, Defense Technology Systems' products and services BEFORE DCI acquisition to be sent under separate cover e-mail
Good Luck to you Harry. Good luck to all and peace on earth.
Augie
Thanks Number. I will post the email from IR that you just mentioned. I just got it.
-----Original Message-----
From: LCGroup [mailto:lcgroup@mindspring.com]
Sent: Tuesday, March 15, 2005 2:42 PM
To: LCGroup
Subject: NewMarket Technology (OTCBB:NMKT) SEC Form 8K Disclosure March 15, 2005
Reference: NewMarket SEC Form 8K Disclosure March 15, 2005
Dear Fellow Shareholders:
The SEC Form 8K disclosure submitted yesterday and filed today appears to have caused confusion and concern. The purpose of this communication is to sort out the confusion and correspondingly alleviate any concern. In fact, I consider the events associated with this SEC Form 8k to be good news for NewMarket shareholders.
SEC Form 8K March 15, 2005 Summary
In short, NewMarket was considering an immediate $2 million investment with a follow-on $3 million dollar investment that would have required the Company to file a registration statement to support a $5 million security convertible into free trading shares of NewMarket Stock. For a number of reasons, NewMarket is not proceeding with this transaction. NewMarket has sourced an alternative financing arrangement that will satisfy our acquisition financing requirements and not require any additional NewMarket stock to be issued.
SEC Form 8K March 15, 2005 Detailed History
The Company has anticipated investing $5 million in working capital into new acquisitions. NewMarket does not require any financing to fund existing operations. All contemplated financing is in association with our acquisition strategy and plans.
Late last year, as mentioned above, NewMarket considered a security financing transaction totaling $5 million. In more detail then summarized above, the contemplated security financing would have provided $2 million in conjunction with the filing of a registration statement and up to $3 million after the registration statement became effective as required to support the acquisitions. However, after the security transaction was initially closed and partially financed, recent Securities and Exchange Commission (SEC) rule interpretations voided the terms of our transaction. The SEC published rule interpretations that required all funds associated with a private investment to be received by the Company within five days of a registration statement becoming effective. This change voided the anticipated terms for $3 million in funding to be available to NewMarket subsequent to the registration statement becoming effective. After many weeks of attempted negotiations to restructure this financing, the agreement was canceled. The partial funds received from one investor were returned and the funds from the second investor were restructured into a term note. The Company has decided not to pursue funding at this time that would require a registration statement. The SEC Form 8K disclosure filed today addresses the cancellation of the contemplated financing.
We suspect the negotiations to attempt to restructure the originally negotiated security financing agreement may have been prolonged on the part of one of the potential investors in an effort to protect a premature hedge position. Recognizing that NewMarket and the two potential investors executed and partially funded security financing agreements, it is possible that the investors might have hedged against the agreement. Our suspicion arises from an investors’ aggressive unwillingness to consider a reduced investment amount that could have been entirely funded within five days of a registration statement being effective.
Operational Impact and Revised Approach
The Company does not have an immediate need for all $5 million in financing. Our current acquisition pipeline only requires the initial $2 million in financing over the next 180 days. The Company has already engaged alternative financing on improved terms that will not require the registration of any new NewMarket stock in order to provide $2 million in financing to impending acquisitions. The company has already receive $850,000 toward a total of $1 million in debt financing that is currently structured in a 30 day note intended to be restructured into a long-term note to include the remaining $150,000 prior to the end of the 30 day term. An additional $1 million is committed for investment directly into NewMarket China secured exclusively by NewMarket China assets.
We are confident that NewMarket's improving balance sheet and revenue growth will ultimately enable the Company to gain access to the additional $3 million in anticipated capital requirements for future acquisitions on terms improved from those in the previously contemplated security financing transaction.
Conclusions and Additional Information
There should be no call for concern in regard to the SEC Form 8K disclosure filed today. As mentioned in my introduction, I believe the course of events that lead to this change in contemplated financing, while peculiar and certainly unpredictable, have fortunately resulted in improved acquisition working capital financing terms.
In an effort to thoroughly address concerns I have included below the original letter to shareholders addressing the cancellation of the originally contemplated financing and the resulting changes in our acquisition financing strategy. While some of the information will be redundant, the following letter does provide more detail regarding the acquisitions under negation that could add $70 million in annual revenue for NewMarket.
I recognize the apparent confusion regarding the SEC Form 8K filed today may be in part responsible for the dip in price per share. I do hope that the dissemination of this correspondence will mitigate if not eliminate any concern that may have resulted from today’s filing.
Thank you for your ongoing interest in NewMarket. Please do not hesitate to contact the company with any further questions at lcgroup@mindspring.com Rick Lutz, Investor Relations, 404-261-1196.
Best Regards,
Philip Verges
CEO and Chairman
NewMarket Technology Inc.
NewMarket Technology Inc. Releases Letter to Shareholders; Provides Update on Acquisition Plans with $70 Million in Potential New Sales Under Negotiation
DALLAS
NewMarket Technology, Inc.
Rick Lutz, 404-261-1196
ir@ipvoice.com
www.newmarkettechnology.com
www.ipvoice.com
CEO Outlines Evolving Strategy to Provide Working Capital Financing to Acquired Companies and Details Recent Finance Restructure with Improved Terms
NewMarket Technology Inc. (OTCBB:NMKT) today released a Letter to Shareholders from Philip Verges, CEO of NewMarket Technology. The letter is included in its entirety in this press release.
Dear Fellow Shareholders,
The key aspect of NewMarket's business model that differentiates the Company from other emerging technology companies is our unique dividend strategy. After three years of acquiring and developing early stage proprietary technology, NewMarket has recently announced its first spin-off and shareholder dividend. With the sale of our Homeland Security subsidiary to Defense Technology Systems (OTCBB:DFTS), NewMarket will issue 10 million shares of Defense Technology stock in a dividend to its shareholders of record as of July 1, 2005. As the result of further spin-offs, NewMarket plans this year to declare and issue similar dividends totaling $10 million in value.
NewMarket has grown from $2.3 million in revenue in 2003 to $25 million in revenue in 2004. Much of this more than 1000% growth was achieved through acquisition. NewMarket has forecasted $75 million in revenue in 2005 with the majority of the $50 million increase to result from organic growth. The Company has recently announced details regarding a $150 million sales pipeline. With our unique dividend strategy as the key aspect of NewMarket's business model the acquisition of early stage proprietary technology companies still remains a critical component of our strategy.
The company has lately concentrated on communicating information to shareholders regarding our first ever equity dividend. The Company has also concentrated on communicating organic sales growth progress. The purpose of this communication is to update shareholders on NewMarket's ongoing acquisition strategy and progress.
Over the last two years, NewMarket has acquired six majority interests and two minority interests in eight entrepreneurial early stage technology companies. NewMarket has also acquired four technology services companies to support and distribute the proprietary technologies of the eight early stage technology companies. NewMarket is currently in negotiations to acquire additional early stage technology and service companies with a cumulative annual revenue in excess of $70 million.
NewMarket has expanded its technology focus from telecommunications, healthcare and Homeland Security to now include financial services. NewMarket has also duplicated its overall acquisition, spin-off and dividend business model in parallel subsidiary companies concentrating in developing economic regions. NewMarket has recently announced NewMarket China and an initial acquisition in China. NewMarket China accounts for almost $50 million of the $70 million in potential new revenue to be added through acquisition. NewMarket will announce the launch of NewMarket Latin America in the second quarter of 2005.
The Company has anticipated investing $5 million in working capital into new acquisitions. NewMarket continues to explore improved terms to access investment capital. Late last year, NewMarket contemplated a security financing transaction totaling $5 million. The contemplated security financing would have provided $2 million in conjunction with the filing of a registration statement and up to $3 million after the registration statement became effective as required to support the acquisitions. However, after the contemplated security transaction was initially closed and partially financed, recent Securities and Exchange Commission (SEC) rule interpretations voided the terms of our contemplated transaction. The SEC published rule interpretations that required all funds associated with a private investment to be received by the Company within five days of a registration statement becoming effective. This change voided the contemplated terms for $3 million in funding to be available to NewMarket subsequent to the registration statement becoming effective. After many weeks of attempted negotiations to restructure the contemplated financing, the agreement was canceled. The partial funds received from one investor were returned and the funds from the second investor were restructured into a term note. The Company has decided not to pursue funding at this time that would require a registration statement. An SEC Form 8K disclosure will be filed in association with the cancellation of the contemplated financing.
The Company has already engaged alternative financing on improved terms that will not require the registration of any new NewMarket stock in order to provide $2 million in financing to impending acquisitions. The company will receive $1 million in debt financing and an additional $1 million will be invested directly into NewMarket China. We are confident that NewMarket's improving balance sheet and revenue growth will ultimately enable the Company to gain access to the additional $3 million in anticipated capital requirements for future acquisitions on terms improved from those in the previously contemplated security financing transaction.
Management is enthusiastic about the Company's overall progress in organic growth, shareholder dividend opportunity, ongoing acquisitions, and access to capital. We look forward to providing future updates and welcome shareholder questions. Please do not hesitate to contact the company at lcgroup@mindspring.com Rick Lutz, Investor Relations, 404-261-1196.
Best Regards,
Philip Verges
CEO and Chairman
NewMarket Technology Inc.
About NewMarket Technology Inc. (www.newmarkettechnology.com)
In 2002, NewMarket launched a business plan to continuously introduce emerging communication technologies to market. The plan included a financing model for early technologies and an approach to creating economies of scale through a specialized service and support organization intended specifically for the emerging technology industry. The Company posted six consecutive profitable quarters through 2003 and established an annualized $15 million in revenue. In 2004, the Company diversified its communications technology offering into the healthcare and homeland security industries with the respective acquisitions of Medical Office Software Inc. (MOS) and Digital Computer Integration Corp (DCI). NewMarket Technology has forecasted revenue of $25 million for 2004, to be reported in the Company's next 10-K SEC filing, and 2005 revenue of $75 million. The Company has expanded sales into Asia, Latin America and Canada through the acquisitions of Infotel Technologies in Singapore, RKM IT Solutions of Caracas, Venezuela, and Logicorp respectively. The company recently announced its first spin-off with the acquisition by Defense Technology Systems (OTCBB: DFTS) of NewMarket's Homeland Security subsidiary, DCI, for stock.
This press release contains statements (such as projections regarding future performance) that are forward-looking statements as defined in the Private Securities Litigation Reform Act of 1995. Actual results may differ materially from those projected as a result of certain risks and uncertainties, including but not limited to those detailed from time to time in the Company's filings with the Securities and Exchange Commission.
Reference: NewMarket SEC Form 8K Disclosure March 15, 2005
Dear Fellow Shareholders:
The SEC Form 8K disclosure submitted yesterday and filed today appears to have caused confusion and concern. The purpose of this communication is to sort out the confusion and correspondingly alleviate any concern. In fact, I consider the events associated with this SEC Form 8k to be good news for NewMarket shareholders.
SEC Form 8K March 15, 2005 Summary
In short, NewMarket was contemplating an immediate $2 million investment with a follow on $3 million dollar investment that would have required the Company to file a registration statement to support a $5 million security convertible into free trading shares of NewMarket Stock. For a number of reasons, NewMarket is not proceeding with this transaction. NewMarket has sourced an alternative financing arrangement that will satisfy our acquisition financing requirements and not require any additional NewMarket stock to be issued.
SEC Form 8K March 15, 2005 Detailed History
The Company has anticipated investing $5 million in working capital into new acquisitions. NewMarket does not require any financing to fund existing operations. All contemplated financing is in association with our acquisition strategy and plans.
Late last year, as mentioned above, NewMarket contemplated a security financing transaction totaling $5 million. In more detail then summarized above, the contemplated security financing would have provided $2 million in conjunction with the filing of a registration statement and up to $3 million after the registration statement became effective as required to support the acquisitions. However, after the contemplated security transaction was initially closed and partially financed, recent Securities and Exchange Commission (SEC) rule interpretations voided the terms of our contemplated transaction. The SEC published rule interpretations that required all funds associated with a private investment to be received by the Company within five days of a registration statement becoming effective. This change voided the contemplated terms for $3 million in funding to be available to NewMarket subsequent to the registration statement becoming effective. After many weeks of attempted negotiations to restructure the contemplated financing, the agreement was canceled. The partial funds received from one investor were returned and the funds from the second investor were restructured into a term note. The Company has decided not to pursue funding at this time that would require a registration statement. The SEC Form 8K disclosure filed today addresses the cancellation of the contemplated financing.
We suspect the negotiations to attempt to restructure the originally contemplated security financing agreement may have been prolonged on the part of one of the contemplated investors in an effort to protect a premature hedge position. Recognizing that NewMarket and the two contemplated investors executed and partially funded security financing agreements, it is possible that the investors might have hedged against the agreement. Our suspicion arises from an investors’ aggressive unwillingness to consider a reduced investment amount that could have been entirely funded within in five days of a registration statement being effective.
Operational Impact and Revised Approach
The Company does not have an immediate need for all $5 million in financing. Our current acquisition pipeline only requires the initial $2 million in financing over the next 180 days. The Company has already engaged alternative financing on improved terms that will not require the registration of any new NewMarket stock in order to provide $2 million in financing to impending acquisitions. The company has already receive $850,000 toward a total of $1 million in debt financing that is currently structured in a 30 day note intended to be restructured into a long-term note to include the remaining $150,000 prior to the end of the 30 day term. An additional $1 million is committed for investment directly into NewMarket China secured exclusively by NewMarket China assets.
We are confident that NewMarket's improving balance sheet and revenue growth will ultimately enable the Company to gain access to the additional $3 million in anticipated capital requirements for future acquisitions on terms improved from those in the previously contemplated security financing transaction.
Conclusions and Additional Information
There should be no call for concern in regard to the SEC Form 8K disclosure filed today. As mentioned in my introduction, I believe the course of events that lead to this change in contemplated financing, while peculiar and certainly unpredictable, have fortunately resulted in improved acquisition working capital financing terms.
In an effort to thoroughly address concerns I have included below the original letter to shareholders addressing the cancellation of the originally contemplated financing and the resulting changes in our acquisition financing strategy. While some of the information will be redundant, the following letter does provide more detail regarding the acquisitions under negation that could add $70 million in annual revenue for NewMarket.
I recognize the apparent confusion regarding the SEC Form 8K filed today may be in part responsible for the dip in price per share. However, I would advise that any one issue or event is never likely to be the cause of any overall change in share price. I do hope that the dissemination of this correspondence will mitigate if not eliminate any concern that may have resulted from today’s filing.
Thank you for your ongoing interest in NewMarket. Please do not hesitate to contact the company with any further questions at lcgroup@mindspring.com Rick Lutz, Investor Relations, 404-261-1196.
Best Regards,
Philip Verges
CEO and Chairman
NewMarket Technology Inc.
NewMarket Technology Inc. Releases Letter to Shareholders; Provides Update on Acquisition Plans with $70 Million in Potential New Sales Under Negotiation
DALLAS
NewMarket Technology, Inc.
Rick Lutz, 404-261-1196
ir@ipvoice.com
www.newmarkettechnology.com
www.ipvoice.com
CEO Outlines Evolving Strategy to Provide Working Capital Financing to Acquired Companies and Details Recent Finance Restructure with Improved Terms
NewMarket Technology Inc. (OTCBB:NMKT) today released a Letter to Shareholders from Philip Verges, CEO of NewMarket Technology. The letter is included in its entirety in this press release.
Dear Fellow Shareholders,
The key aspect of NewMarket's business model that differentiates the Company from other emerging technology companies is our unique dividend strategy. After three years of acquiring and developing early stage proprietary technology, NewMarket has recently announced its first spin-off and shareholder dividend. With the sale of our Homeland Security subsidiary to Defense Technology Systems (OTCBB:DFTS), NewMarket will issue 10 million shares of Defense Technology stock in a dividend to its shareholders of record as of July 1, 2005. As the result of further spin-offs, NewMarket plans this year to declare and issue similar dividends totaling $10 million in value.
NewMarket has grown from $2.3 million in revenue in 2003 to $25 million in revenue in 2004. Much of this more than 1000% growth was achieved through acquisition. NewMarket has forecasted $75 million in revenue in 2005 with the majority of the $50 million increase to result from organic growth. The Company has recently announced details regarding a $150 million sales pipeline. With our unique dividend strategy as the key aspect of NewMarket's business model the acquisition of early stage proprietary technology companies still remains a critical component of our strategy.
The company has lately concentrated on communicating information to shareholders regarding our first ever equity dividend. The Company has also concentrated on communicating organic sales growth progress. The purpose of this communication is to update shareholders on NewMarket's ongoing acquisition strategy and progress.
Over the last two years, NewMarket has acquired six majority interests and two minority interests in eight entrepreneurial early stage technology companies. NewMarket has also acquired four technology services companies to support and distribute the proprietary technologies of the eight early stage technology companies. NewMarket is currently in negotiations to acquire additional early stage technology and service companies with a cumulative annual revenue in excess of $70 million.
NewMarket has expanded its technology focus from telecommunications, healthcare and Homeland Security to now include financial services. NewMarket has also duplicated its overall acquisition, spin-off and dividend business model in parallel subsidiary companies concentrating in developing economic regions. NewMarket has recently announced NewMarket China and an initial acquisition in China. NewMarket China accounts for almost $50 million of the $70 million in potential new revenue to be added through acquisition. NewMarket will announce the launch of NewMarket Latin America in the second quarter of 2005.
The Company has anticipated investing $5 million in working capital into new acquisitions. NewMarket continues to explore improved terms to access investment capital. Late last year, NewMarket contemplated a security financing transaction totaling $5 million. The contemplated security financing would have provided $2 million in conjunction with the filing of a registration statement and up to $3 million after the registration statement became effective as required to support the acquisitions. However, after the contemplated security transaction was initially closed and partially financed, recent Securities and Exchange Commission (SEC) rule interpretations voided the terms of our contemplated transaction. The SEC published rule interpretations that required all funds associated with a private investment to be received by the Company within five days of a registration statement becoming effective. This change voided the contemplated terms for $3 million in funding to be available to NewMarket subsequent to the registration statement becoming effective. After many weeks of attempted negotiations to restructure the contemplated financing, the agreement was canceled. The partial funds received from one investor were returned and the funds from the second investor were restructured into a term note. The Company has decided not to pursue funding at this time that would require a registration statement. An SEC Form 8K disclosure will be filed in association with the cancellation of the contemplated financing.
The Company has already engaged alternative financing on improved terms that will not require the registration of any new NewMarket stock in order to provide $2 million in financing to impending acquisitions. The company will receive $1 million in debt financing and an additional $1 million will be invested directly into NewMarket China. We are confident that NewMarket's improving balance sheet and revenue growth will ultimately enable the Company to gain access to the additional $3 million in anticipated capital requirements for future acquisitions on terms improved from those in the previously contemplated security financing transaction.
Management is enthusiastic about the Company's overall progress in organic growth, shareholder dividend opportunity, ongoing acquisitions, and access to capital. We look forward to providing future updates and welcome shareholder questions. Please do not hesitate to contact the company at lcgroup@mindspring.com Rick Lutz, Investor Relations, 404-261-1196.
Best Regards,
Philip Verges
CEO and Chairman
NewMarket Technology Inc.
About NewMarket Technology Inc. (www.newmarkettechnology.com)
In 2002, NewMarket launched a business plan to continuously introduce emerging communication technologies to market. The plan included a financing model for early technologies and an approach to creating economies of scale through a specialized service and support organization intended specifically for the emerging technology industry. The Company posted six consecutive profitable quarters through 2003 and established an annualized $15 million in revenue. In 2004, the Company diversified its communications technology offering into the healthcare and homeland security industries with the respective acquisitions of Medical Office Software Inc. (MOS) and Digital Computer Integration Corp (DCI). NewMarket Technology has forecasted revenue of $25 million for 2004, to be reported in the Company's next 10-K SEC filing, and 2005 revenue of $75 million. The Company has expanded sales into Asia, Latin America and Canada through the acquisitions of Infotel Technologies in Singapore, RKM IT Solutions of Caracas, Venezuela, and Logicorp respectively. The company recently announced its first spin-off with the acquisition by Defense Technology Systems (OTCBB: DFTS) of NewMarket's Homeland Security subsidiary, DCI, for stock.
This press release contains statements (such as projections regarding future performance) that are forward-looking statements as defined in the Private Securities Litigation Reform Act of 1995. Actual results may differ materially from those projected as a result of certain risks and uncertainties, including but not limited to those detailed from time to time in the Company's filings with the Securities and Exchange Commission.
Hi Street, I am also concern about the 8K today but I already knew it was coming. What I did not know was it is supposed to be paid off by end of the month. Not sure either if this will count toward 1st Q 2005 or 4th QTR. My educated guess would be 1st QTR 2005 but I may be wrong. About AMEX, I sent an email to Rick asking him if this would be a problem since our Market Cap has fallen like a rock. I am still confident that there will be a big turn around soon. Just my opinion. Good luck to you and all. Peace on earth.
Augie
I hope Phil does not disappoint us. Good luck Pete and all. Peace on earth.
Augie
I did read the PR this morning and I believe and this is just my opinion. That people got scared that the loan need to be paid out by the end of the month hence, would cut down on NMKT's profit for the 1st QTR 2005. I am going to wait and see what happens on the 4th Qtr/yearly release due this month and decide if NMKT is still on track as they say they are. Since I have been holding NMKT/IPVO for a while now... I have seen big drops before any good news comes out. It happened for the last several QTR's earnings. I just don't understand now since they have dropped this much in the last week... Are they still able to meet the AMEX requirements? Or is that down the drain? Anyone have any ideas? I am holding for now and buy some more shares at these prices when I get some funds. Good luck to all and peace on earth.
Augie
Just added to my holdings today. Added another 20k at .525 Phil has not disappointed me yet I hope he does not start. Good luck to you and all. Peace on earth.
Augie
It is buying time again :) NMKT is almost predictable for those who are following NMKT since the IPVO days. Anyways, Good luck to all and peace on earth.
Azpete0, I have been waiting since the last run up when it hit the all time high. I was lucky since I was able to unload some of my holdings and bought a lot more when it went down all the way back to the .30's. What I want to happen this month are the following:
1. Our 4th Q/2004 yearly post a profit.
2. We get accepted to AMEX.
3. Announcement of any 8K (Gaozhi, Infotel, etc...)
These things would definitely bring us way above the $1.00 range and definitely get institutional investors in a heartbeat. Good luck to you and all. Peace on earth,
Augie
I know exactly what you mean. It seem like someone is trying to control the stock price that barely pass the requirement to AMEX. Until we hear the news that we are accepted to AMEX I think we will be at this price for a while. Cannot wait for us to leave OTCBB. I wonder if this is really the case with NMKT. Anyone has any other feedback on this is welcome to share their knowledge, DD, comments etc... At this price, I have been accumulating as much as I can hoping for that day when we do get a run up and never fall back to this price level. I guess we just have to wait and see. I hope our patience pays off at the end. :) Well, Good luck to all and peace on earth.
News today 3/4/2005 Way to go NMKT. Good luck to all and peace on earth.
Press Release Source: NewMarket Technology Inc.
NewMarket Technology Inc. Announces $5 Million Strategic Sourcing Contract
Friday March 4, 9:33 am ET
Company Forecasts 200 Percent Growth in 2005 to $75 Million in Revenue
NewMarket Building Organic Sales Traction with Sales Pipeline Approaching $150 Million; Latin America and China Lead NewMarket Revenue Growth
DALLAS--(BUSINESS WIRE)--March 4, 2005-- NewMarket Technology Inc. (OTCBB:NMKT - News) announced today the signing of a $5 million Strategic Sourcing contract with an online financial services firm. Strategic Sourcing is NewMarket's technology services subsidiary specializing in the integration and support of mainstream and emerging technology solutions. The Strategic Sourcing division (www.newmarketsourcing.com) integrates and supports NewMarket's in-house emerging technology product line, in addition to the products and services of partner technology companies. Partners include both start-up technology firms and brand name firms such as Microsoft (Nasdaq:MSFT - News), Cisco Systems (Nasdaq:CSCO - News), and Sun Microsystems (Nasdaq:SUNW - News). Strategic Sourcing customers span foreign and domestic governments, small and medium-sized businesses as well as large corporations that include Siemens (NYSE:SI - News), CSX (NYSE:CSX - News), Visa, Alcatel (NYSE:ALA - News), and Bayer (NYSE:BAY - News).
ADVERTISEMENT
"NewMarket announced entering the financial services market at the end of 2004," said Philip Verges, CEO of NewMarket. "This new Strategic Sourcing contract will add to our financial industry experience and give us insight into the type of financial industry innovations on which to concentrate our development and service efforts. We are already a Microsoft Gold Great Plains Business Solution Partner and expect to establish our first complementary in-house proprietary financial software products later this year. This contract also represents the increasing size of contracts NewMarket is able to secure as we build our corporate reputation in the marketplace. We are gratified to notice that as we have grown as a company, we have been invited to answer Request for Proposals (RFP's) representing significantly higher revenue than in the past. We have nearly $150 million in our sales pipeline today and anticipate reaching our forecasted $75 million in booked 2005 revenue easily. We are growing most rapidly in our Latin America and China markets with about $100 million of the sales pipeline coming from Latin America and $30 million from China."
The $5 million Strategic Sourcing contract announced today begins immediately and encompasses a twelve-month period with revenue to be recognized on an ongoing basis. The contract is expected to extend into additional years and increase in annual dollar volume.
Investors with an interest in NewMarket Technology can be added to the company's e-mail list for corporate updates and press releases by e-mailing LCGroup@mindspring.com.
About NewMarket Technology Inc. (www.newmarkettechnology.com)
In 2002, NewMarket launched a business plan to continuously introduce emerging communication technologies to market. The plan included a financing model for early technologies and an approach to creating economies of scale through a specialized service and support organization intended specifically for the emerging technology industry. The Company posted six consecutive profitable quarters through 2003 and established an annualized $15 million in revenue. In 2004, the Company diversified its communications technology offering into the healthcare and homeland security industries with the respective acquisitions of Medical Office Software Inc. (MOS) and Digital Computer Integration Corp (DCI). NewMarket Technology has forecasted revenue of $25 million for 2004, to be reported in the Company's next 10-K SEC filing, and 2005 revenue of $75 million. The Company has expanded sales into Asia, Latin America and Canada through the acquisitions of Infotel Technologies in Singapore, RKM IT Solutions of Caracas, Venezuela, and Logicorp respectively. The company recently announced its first spin-off with the acquisition by Defense Technology Systems (OTCBB:DFTS - News) of NewMarket's Homeland Security subsidiary, DCI, for stock.
This press release contains statements (such as projections regarding future performance) that are forward-looking statements as defined in the Private Securities Litigation Reform Act of 1995. Actual results may differ materially from those projected as a result of certain risks and uncertainties, including but not limited to those detailed from time to time in the Company's filings with the Securities and Exchange Commission.
--------------------------------------------------------------------------------
Contact:
NewMarket Technology, Inc.
Rick Lutz, 404-261-1196
ir@ipvoice.com
www.newmarkettechnology.com
www.ipvoice.com
--------------------------------------------------------------------------------
Source: NewMarket Technology Inc.
Hi Street, I just tried it and it still works for me. Another site that you can check is http://www.otcbb.com/asp/Info_Center.asp and
http://www.allstocks.com/level2quotesotcbb.html
That is all I know so far that shows level II but delayed. Unless you are with Scottrade Elite... Good luck to you and peace on earth.
Another release today.
Press Release Source: NewMarket Technology, Inc.
NewMarket Technology Inc. Announces Change of Auditor in Compliance with Sarbanes-Oxley Act
Tuesday March 1, 2:08 pm ET
NewMarket Addresses Questions Regarding Recent SEC Form 8-K Disclosing the Company's Change of Auditor
DALLAS--(BUSINESS WIRE)--March 1, 2005-- NewMarket Technology Inc. (OTCBB:NMKT - News) today announced a change of auditor in compliance with the rule changes instituted by Sarbanes-Oxley that require the rotation or replacement every five years of the partner-in-charge of the audit. Durland & Co. has only one partner, therefore the Company was required to change auditors in order to meet Sarbanes-Oxley compliance. Durland & Co. is assisting in assuring that this transition is as smooth and seamless as possible. The change of auditors requires the filing of Form 8-K with the US SEC, which NewMarket completed on a timely basis.
"We are underway with the audit as Durland & Co. has already been facilitating the transition of responsibilities to our new auditing firm, Pollard-Kelley Auditing Services Inc.," said Philip Verges, CEO and Chairman of NewMarket Technology. "We continue to expect filing our 10-K by the due date of March 31, 2005. As part of our efforts we are engaged in a number of compliance and reporting initiatives intended to prepare the market for the increased requirements of a more stringent exchange. We hope this release will clarify any confusion and encourage shareholders to contact the Company with any further questions."
About NewMarket Technology, Inc. (www.newmarkettechnology.com)
In 2002, NewMarket launched a business plan to continuously introduce emerging communication technologies to market. The plan included a financing model for early technologies and an approach to creating economies of scale through a specialized service and support organization intended specifically for the emerging technology industry. The Company posted six consecutive profitable quarters through 2003 and established an annualized $15 million in revenue. In 2004, the Company diversified its communications technology offering into the healthcare and homeland security industries with the respective acquisitions of Medical Office Software Inc. and Digital Computer Integration Corp (DCI). The Company has expanded sales into Asia, Latin America and Canada through the acquisitions of Infotel Technologies in Singapore, RKM IT Solutions of Caracas, Venezuela, and Logicorp respectively. The company recently announced its first spin-off with the acquisition by Defense Technology Systems (OTCBB:DFTS - News) of NewMarket's Homeland Security subsidiary, DCI, for stock. NewMarket shareholders will receive a property dividend in the form of DFTS stock at a later date.
This press release contains statements (such as projections regarding future performance) that are forward-looking statements as defined in the Private Securities Litigation Reform Act of 1995. Actual results may differ materially from those projected as a result of certain risks and uncertainties, including but not limited to those detailed from time to time in the Company's filings with the Securities and Exchange Commission.
--------------------------------------------------------------------------------
Contact:
NewMarket Technology, Inc.
Investor Relations
Rick Lutz, 404-261-1196
ir@ipvoice.com
www.newmarkettechnology.com
www.ipvoice.com
--------------------------------------------------------------------------------
Source: NewMarket Technology, Inc.
News today March 01, 2005 Good luck to all and peace on earth.
Press Release Source: NewMarket Technology Inc.
NewMarket Technology Inc. Announces Record Date July 1st 2005 for Dividend to Shareholders
Tuesday March 1, 10:18 am ET
With Recent NewMarket Acquisition of Majority Interest in Defense Technology Systems, NewMarket to Distribute 10 Million Shares of Defense Technology Stock
DALLAS--(BUSINESS WIRE)--March 1, 2005-- NewMarket Technology Inc. (OTCBB:NMKT - News) and Defense Technology Systems (OTCBB:DFTS - News) last week announced executing a definitive agreement to combine the two companies' Homeland Security operations. In the agreement, Defense Technology Systems acquired the majority interest in NewMarket's Homeland Security subsidiary in exchange for $6 million in Defense Technology preferred stock.
ADVERTISEMENT
NewMarket will receive two classes of preferred stock totaling $6 million in value. One class of preferred will be convertible into 10 million shares of Defense Technology common stock as of July 1st 2005. NewMarket intends to declare a dividend distributing the 10 million Defense Technology shares to NewMarket shareholders of record as of July 1st 2005. The distribution ratio of DFTS stock to NMKT share ownership will be finalized later, although initial expectations are 1 share of DFTS stock for every 10 shares of NMKT stock owned on the record date. The second class of preferred stock will have Defense Technology majority voting rights.
Defense Technology's 2005 revenue forecast is $12 million for the combined operations. NewMarket's Homeland Security subsidiary has a 2005 revenue forecast of $8 million. The $8 million forecast is based on the trailing 12 month revenue of over $4 million with an additional $2 million in already scheduled projects to follow completion of related prerequisite projects.
The former NewMarket Homeland Security subsidiary operates under the business name DCI-Netsco (www.dci-netsco.com) DCI-Netsco is the combined operations of two NewMarket subsidiaries, DCI and Netsco. Although the assets of each subsidiary reside in two separate companies, DCI management is responsible for the day to day operations of Netsco and is the exclusive reseller of Netsco products. The management of both Defense Technology and NewMarket Technology expect to sell Netsco equity to Defense Technology in the future.
DCI is a leading-edge technology company with over 20 years of experience in engineering specialized hardware and software where commercial-off-the-shelf (COTS) products fall short of the critical needs of enterprise, military or government organizations. The Company's experience with military and government solutions has naturally lead the Company toward becoming an exceptional Homeland Security Solution Provider with a host of innovative proprietary technologies.
Netsco, a Sun Microsystems (Nasdaq:SUNW - News) Partner, is a software product and services company that specializes in mission-critical distributed computing solutions for large scale enterprise applications. Netsco has developed a host of proprietary Radio Frequency Identification (RFID) systems and is currently engaged in a number of RFID pilot projects around the world. Netsco recently announced receiving a provisional patent on its Value Asset and Shipment Tracking System (VAST), a wireless monitoring, tracking, evaluating and response system where any product and any system can be monitored and tracked globally using multiple wireless technologies. The VAST has multiple industrial and military applications.
About NewMarket Technology, Inc. (www.newmarkettechnology.com)
In 2002, NewMarket launched a business plan to continuously introduce emerging communication technologies to market. The plan included a financing model for early technologies and an approach to creating economies of scale through a specialized service and support organization intended specifically for the emerging technology industry. The Company posted six consecutive profitable quarters through 2003 and established an annualized $15 million in revenue. In 2004, the Company diversified its communications technology offering into the healthcare and homeland security industries with the respective acquisitions of Medical Office Software Inc. and Digital Computer Integration Corp (DCI). The Company has expanded sales into Asia, Latin America and Canada through the acquisitions of Infotel Technologies in Singapore, RKM IT Solutions of Caracas, Venezuela, and Logicorp respectively. The company recently announced its first spin-off with the acquisition by Defense Technology Systems (OTCBB: DFTS - News) of NewMarket's Homeland Security subsidiary, DCI, for stock. NewMarket shareholders will receive a property dividend in the form of DFTS stock at a later date.
About Defense Technology Systems Inc.
Defense Technology Systems, Inc. is an international provider of data and security solutions with two operating divisions.
The Company's Defense Systems division was created in response to growing international security concerns. DWS offers a broad portfolio of security-related products, including ballistic glass and associated security systems, and the only Security Portal certified for Ballistics and Forced Entry by the U.S. Department of State. The highly skilled DWS Defense Systems team, working in collaboration with its partners, will design, develop, manufacture, install and market specialty products, equipment, and systems for the safety and security needs of all sectors of the domestic and international marketplace.
The Company's Data division is a multi-regional manufacturer of electronic cable assemblies used in providing connectivity solutions for customers operating a wide range of data systems to include linking or connecting standard or proprietary electronic devices and peripheral components from different vendors to provide solutions for various customer equipment configurations and requirements. The Data division adds value by providing connectivity solutions, which may also include distributed sales of passive components such as electronic connectors, electronic wire and cable, cabinets and racks and patch panels, and active components including hubs, bridges, routers, gateways and modems.
For more information on Defense Technology Systems, Inc. visit: www.dwsdefense.com and www.dataworlddirect.com.
This press release contains statements (such as projections regarding future performance) that are forward-looking statements as defined in the Private Securities Litigation Reform Act of 1995. Actual results may differ materially from those projected as a result of certain risks and uncertainties, including but not limited to those detailed from time to time in the Company's filings with the Securities and Exchange Commission.
--------------------------------------------------------------------------------
Contact:
NewMarket Technology, Inc.
Rick Lutz, 404-261-1196
ir@ipvoice.com
www.newmarkettechnology.com
www.ipvoice.com
--------------------------------------------------------------------------------
Source: NewMarket Technology Inc.
News 2/28/05 8 K
Form 8-K for NEWMARKET TECHNOLOGY INC
--------------------------------------------------------------------------------
28-Feb-2005
Change in Accountant, Financial Statements and Exhibits
ITEM 4.01(a). CHANGES IN REGISTRANT'S CERTIFYING ACCOUNTANT
On February 23, 2005 the Company was notified that Durland & Company, CPAs, PA would not be able to act as the Company's independent auditor as a result of the PCAOB interpretation of the rule requiring the rotation of audit partner every five years, as Durland & Company has only one partner.
Durland & Company, CPAs, PA performed the audit for the period ended December 31, 2003, which did not contain any adverse opinion or a disclaimer of opinion, nor was qualified.
During the Registrant's two most recent fiscal years and during any subsequent interim period prior to the resign as the Company's independent auditors, there were no disagreements with Durland & Company, CPAs, PA, with respect to accounting or auditing issues of the type discussed in Item 304(a)(iv) of Regulation S-B.
ITEM 4.01(b). CHANGES IN REGISTRANT'S CERTIFYING ACCOUNTANT.
On February 23, 2005, the Company's board of directors approved the engagement of the firm of Pollard-Kelley Auditing Services, Inc., 3250 W. Market St., Suite 307, Fairlawn, Ohio 44333, as the Company's independent auditors. Such appointment was accepted by Terance Kelly of the firm.
During the Registrant's two most recent fiscal years or any subsequent interim period prior to engaging Pollard-Kelley Auditing Services, Inc., the Company, or someone on the Company's behalf, had not consulted Pollard-Kelley Auditing Services, Inc. regarding any of the accounting or auditing concerns stated in Item 304(a)(2) of Regulation S-B.
On February 28, 2005 the Company provided Durland & Company, CPAs, PA with a copy of this disclosure and requested that it furnish a letter to the Company, addressed to the SEC, stating that it agreed with the statements made herein or the reasons why it disagreed.
ITEM 9.01 FINANCIAL STATEMENTS AND EXHIBITS.
(a) Financial statements of business acquired.
(b) Pro forma financial statements.
(c) Exhibits. These exhibits shall be deemed to be filed or furnished, depending on the relevant item requiring such exhibit, in accordance with the provisions of Item 601 of Regulation S-K (17 CFR 229.601), or Item 601 of Regulation S-B (17 CFR 228.601) and Instruction B.2 to this form.
Exhibit No. Description
--------------------------------------------------------------------------------
16.1 * Durland & Company, CPAs, PA letter regarding change of accountant.
--------------------------------------------------------------------------------
* Filed herewith
Received this from IR last Friday. Good luck to all and peace on earth
-----Original Message-----
From: LCGroup [mailto:lcgroup@mindspring.com]
Sent: Friday, February 25, 2005 11:27 AM
To: LCGroup
Subject: NewMarket Technology (OTCBB:NMKT) In Wall Street Transcript This Weekend
NewMarket Technology (OTCBB: NMKT, $0.62)
· Wall Street Transcript (TWST) Interview in VoIP issue this weekend. TWST distributed to 7,000 money managers, analysts, investors and brokerage firms in rollout of initiative to build institutional investor base for NMKT American Stock Exchange listing pending. Interview will be posted on the NMKT Corporate site this weekend. Shareholders receiving this e-mail will have the PDF interview in their in-box later today.
· NewMarket Technology will be a presenting company at one of the largest financial events focused on Micro-Cap companies from March 9-12, 2005 (http://www.valuerichonline.com/convention) for institutional investor shareholder base campaign. Attendees to the conference include:
o Public Company Officers
o Research analysts
o Fund managers
o Money managers
o Institutional investors
o Investment bankers
o Brokers
o Venture Capitalists
o Wealthy Investors
· NewMarket will appear in the next issue of ValueRich Magazine (subscription base --57,000 investors, research analysts, brokers, investment brokers etc.)
· NMKT Financials for Fourth Quarter, 2004 and Annual Report will be filed in 5 weeks
LC Group
404-261-1196
To all, sorry for the mess no time to make it look nice. Just copied and paste. To those who wanted the interview, send me your email and I will gladly forward it to you. It is in Adobe format or you can ask Rick to send you a copy of it. Good luck to all the longs and peace on earth.
Augie
NewMarket Technology Inc. (NMKT)
(ABD611) TWST: Would you begin with a brief history and an
overview of NewMarket Technology?
Mr. Verges: NewMarket Technology is a new business
model introduced into a company, formerly IPVoice Communications,
about two years ago, and the objective of the new business
model is to marry a traditional technology services function with an
emerging technology, if you will, incubation function. We are out acquiring
IP, Internet protocol, software communication companies and
working diligently to get their initial sales through our traditional
technology services. When we get those initial sales and have the ensuing
equity appreciation opportunity, we monetize that equity appreciation
opportunity by spinning off the emerging technology
company and providing equity distribution through a stock dividend
to our shareholders, as well as establishing an equity income line that
supplements our technology service revenue.
In fact, we just announced our first spinoff after executing a
definitive agreement to combine New Market’s homeland security operations
with those of Defense Technology Systems
(OTCBB:DFTS). In the agreement, Defense Technology Systems has
acquired a majority interest in NewMarket’s homeland security subsidiary
in exchange for $6 million in Defense Technology preferred
stock. One class of preferred will be convertible into 10 million shares
of Defense Technology common stock as of July 1st 2005. NewMarket
has plans to declare a dividend and distribute the 10 million Defense
Technology shares to NewMarket shareholders. Defense Technology’s
2005 revenue forecast is $12 million for the combined operations. New-
Market’s homeland security subsidiary has a 2005 revenue forecast of
$8 million, based on trailing the 12 month revenue of over $4 million
with an additional $2 million in scheduled projects pending completion
of related prerequisite projects. We believe that this transaction makes
DFTS stronger, and builds shareholder value for both Newmarket Technology
shareholders as well as DFTS shareholders. We anticipate two
additional dividend events to be announced during 2005.
TWST: When did you start and what have you acquired
so far?
Mr. Verges: In June 2002, we started with a focus in Internet
protocol, voice over IP (VoIP), and it was a logical place to start.
The technology market was extraordinarily sluggish, and voice over
IP’s primary value proposition to the market is providing more efficient,
lower-cost telecommunication services. So bringing such a service
offering into a down economy makes a lot of sense in that the
technology creates a savings opportunity for the client. As we established
traction, we expanded it into complementary IP software solutions
in health care and in homeland security.
PHILIP VERGES is President and CEO of NewMarket Technology Inc. A graduate of
the U.S. Military Academy, he served as an Army Captain specializing in counter
terrorism communication technologies. He went on to work for EDS as an instructor in
systems engineering methodology and programming with various assignments
including the Computer Sciences R&D department of General Motors.
C O M P A N Y I N T E R V I E W
R E P R I N T E D F R O M F E B R U A R Y 2 8 , 2 0 0 5
C O M P A N Y I N T E R V I E W ——————— N E W M A R K E T T E C H N O L O G Y I N C .
So far, we’ve acquired a total of four high-tech subsidiaries
since June 2002 and we’ve acquired equity at an affiliate level, 20%
or more equity interest, in an additional four emerging technology
companies. We’ve also expanded our traditional service business into
Latin America and Southeast Asia through acquisition by acquiring
traditional service companies in Venezuela and Singapore.
TWST: What are you doing in homeland security?
Mr. Verges: Homeland security is a wide open market.
How do you define it? Well, the way we define it is that homeland
security is emanating from a shift in warfare, warfare between nation
states, the military of nation states, to the military of affiliation with
the citizen of a nation state. That means cities now have become the
new forward observation posts as opposed to it being a traditional
military function. So what type of technology can we deliver to a city
that will allow the city to have early warning capabilities or in the
event that early warning doesn’t give that city the ability to avoid an
attack? What can they do with regard to a resilient response?
We have acquired a company that has been a military contractor
or a subcontractor doing custom engineering of off-the-shelf
products from companies like Level-3 Communications, Dynacore
and General Dynamics. And with that library of proprietary technology
from the extension of off-the-shelf products, we are developing
products for the cities. We have established products like our Predator
which gives fire departments the ability to wirelessly gain access
to the blueprints of buildings that they are traveling to or any other
buildings that might be in the sector, as well as traffic routing information
in cities that have a traffic routing capacity. We sold that
pretty widely across North Texas so far.
TWST: And how about voice over IP?
Mr. Verges: In voice over IP, we are establishing a service
strategy. We actually have a voice over IP service offering but we
have a unique strategy, trying to cope with the fact that most of our
competitors are concentrating on a pure play voice over IP strategy
when the market, contrary to what a pure play voice over IP strategy
might hope, is anything but pure, with a heterogeneous telecommunications
infrastructure. There is broadband access via wireless distribution
in some places, broadband access via fiber in other places and
no broadband in other places. There is a embedded infrastructure, corporate
and government, in public switched telephony networks.
So how does one come up with a strategy? We have a number
of different sales fronts, selling into small and medium businesses,
trying to outsource their telecommunications department,
give them a saving today in what might be their traditional or best
heterogeneous environment. And as their service contracts come up
for whatever their existing telecommunications provider might be or
as the switch that they own is depreciated, we evolve out of that into
what will be a pure voice over IP solution in the future. We have a
very competitive infrastructure. We’ve been able to provide voice
over IP. The challenge is marrying that with the heterogeneous environment
that’s out there today.
TWST: How is that going?
Mr. Verges: It is going well. It is a little sluggish with any
new technology that you sell because you put together a solution, you
put together a strategy based on what you believe is possible in the market
and then you wear holes in your shoe leather going out knocking on
doors and really discovering from your customers what your marketing
strategy should be. So you put together your strong man, you knock on
doors, you get a few doors shut on your nose, and you figure out how
to refine your offering. We’ve been through that now for about the last
year and a half and are starting to gain more momentum.
In the near future, in addition to our shoe leather approach
of just refining our overall offering, we plan to expand that offering
through looking for additional acquisitions in the voice over IP space
to more rapidly expand and bring the strategy we’ve learned the hard
way to the companies that we acquire.
TWST: In terms of acquisitions, why are you an attractive
acquiror?
Mr. Verges: We are an attractive acquiror for a select type
of company. We are a micro-cap company, and today we are listed on
the Over the Counter Bulletin Board market. However, we do have
an active American Stock Exchange application for listing on that exchange.
We are very actively traded. So as a small emerging technology
company looking to gain access to reasonable amounts of
investment dollars — and I would say reasonable is from $500,000
“NewMarket Technology is a new business model. The objective of the
new business model is to marry a traditional technology services
function with an emerging technology, if you will, incubation function. We
are out acquiring IP, Internet protocol, software communication
companies and working diligently to get their initial sales through our
traditional technology services.”
C O M P A N Y I N T E R V I E W ——————— N E W M A R K E T T E C H N O L O G Y I N C .
to $3 million over a period of 18 to 36 months — we can gain access
through our public market to that type of capital. And then on an enterprise
basis, we have an excellent foundation for accelerating their
sales opportunity through our traditional services business.
TWST: Why would they come to you rather than a VC?
Mr. Verges: VC capital is difficult to find today. One reason
they may have come to us is because we have capital and we are actively
engaging it. I think a lot of VCs are still in a wait-and-see mode.
But if VCs do become more active, I think the other attractive differentiator
we have from traditional VC is we have an embedded exit strategy
for the entrepreneur. The entrepreneur in the company that we are
acquiring will have access to a publicly listed security, usually restricted
for one to two years in NewMarket Technology stock, but the owner
still maintains some equity in their own company. And, as we establish
their initial sales and prove that they have a viable product, our strategy
is to spin them into their own micro-cap company so that they can gain
access to the next level of capital. As they exit and go into their own
company, they now have stock in NewMarket, but they also have stock
in their own company that they are continuing to develop and build its
enterprise value. So it maintains their motivation to continue building
this company even though they are acquired today and it gives a unique
diversification for the entrepreneur and the companies looking for investment
capital to grow the company that the VC can’t offer them.
TWST: If we look out over the next two years, what are
the goals that you have set for NewMarket?
Mr. Verges: Over the next two years, on a revenue basis,
we would like to grow to a minimum of $100 million. The revenue
guidance that we’ve given for 2005 is $75 million. We believe we are
capable of exceeding that and expect over the course of this year to
raise our forecast. We also look over this year and into next year to
actually start establishing a reputation for regularly issuing equity
dividends. As I mentioned before, we are in the process of our first
transaction where we are spinning out one of our acquired companies
and look to issue a 10 million share equity dividend of a publicly
traded company, Defense Technology Systems, listed on the OTCBB
under the symbol “DFTS.” So that will be 10 million shares that gets
distributed to the shareholders of NewMarket. As we are looking at
it today, that could be what equates to a $5 million equity dividend
for company that has a $50 million market cap.
As we grow over the next few years, we would produce equity
spinoffs three to five times a year. We believe that will get the
market to stand up and notice that there is a new strategy for gaining
access to investment capital on a regular basis for emerging technology
companies.
TWST: You talked about revenues; how about profits?
Mr. Verges: The company was profitable in 2003. We only
did $2.3 million in revenue. We made some substantial investments
in 2004 in order to grow the company. We were profitable in the third
quarter, however, which was ahead of schedule. We anticipated we
would be slightly unprofitable in 2005. It looks like we may be
breakeven or better. We are pulling together our numbers and getting
ready to report our fourth quarter and year-end 2004. We will come
in at roughly $25 million in sales at breakeven or better and we anticipate
being profitable through 2005 and on into 2006.
TWST: What is your year-end?
Mr. Verges: Our year-end is a calendar year-end, December
31.
TWST: Do you have the management team in place that
you need?
Mr. Verges: That’s an excellent question. We have grown
by 1,000% year-to-year 2003 to 2004 and we have what I would refer
to around the office as a “cobbler’s children” syndrome. All the capital
that we’ve raised, we’ve invested in our portfolio subsidiaries
and we’ve invested very little in expanding our own management resources.
With few exceptions, the management team here at the beginning
of 2005 is about the same management team that we had at
year-end 2003. So we are very actively expanding that management
team right now. We are actively interviewing executive-level talent
to help us with the mergers and acquisitions. We’ve already brought
onboard enterprise management people. We’ve just brought onboard
a President to manage our traditional technology services business
and we’ve brought on a number of Vice President-level managers to
co-ordinate the economy of scale opportunities that is created by acquiring
multiple companies.
“We’ve acquired a total of four high-tech subsidiaries since June 2002
and we’ve acquired equity at an affiliate level, 20% or more equity
interest, in an additional four emerging technology companies. We’ve
also expanded our traditional service business into Latin America and
Southeast Asia through acquisition by acquiring traditional service
companies in Venezuela and Singapore.”
C O M P A N Y I N T E R V I E W ——————— N E W M A R K E T T E C H N O L O G Y I N C .
TWST: From a financial point of view, do you have the
resources to do what you want to do?
Mr. Verges: We do have the resources to do what we want
to do in the core business today. The really tremendous part of this
business model is by focusing on the micro cap markets. As one of
our emerging technologies reaches the stage that it requires more
capital than perhaps NewMarket would be able to provide, it’s likely
at a stage where it is able to spin into its own public company and
have its own publicly-listed micro cap structure in order to gain access
to that next level of capital to help it grow to that next level of
revenue. So the business model itself is developed to be able to continuously
satisfy the ongoing and growing financial requirements of
the emerging technology.
TWST: So it kind of becomes self-fulfilling, hopefully?
Mr. Verges: It does.
TWST: Is the market paying any attention yet?
Mr. Verges: The market is paying attention in terms of
being interested in the story. We have a lot of eyes on us and we have
very healthy trading volume. I really believe that the market will
stand up and take notice when we successfully issue one of our first
equity dividends. Again, we should see a dividend in the form of Defense
Technology shares to NewMarket shareholders of record of
July 1 for distribution some time after that date. Once we’ve completed
that first stock dividend distribution, I believe the market will
notice that - a $50 million market cap company just issued a $5 million,
or 10% of our value, in an equity dividend. I particularly think,
as I mentioned earlier, our AMEX applications should also get us to
the next level of attention at the institutional investment level. Many
institutional investors by their own mandates are precluded from investing
on the OTCBB.
So, with such a strategic plan, in order to create multiple
equity dividends per year, we really need to elevate that to the appropriate
audience, the institutional investor audience. To do that we
need to get on an appropriate exchange, and again, AMEX is the direction
that we are headed right now.
TWST: When you talk to investors at this point, what’s
their key question or concern?
Mr. Verges: I think some of the questions that you’ve
asked today. We’ve grown tremendously over the last 12 months, and
one of the first questions that come up, of course, is management. We
have to address that.
Another question that comes up as we sell into the homeland
security, healthcare and telecommunications markets is focus.
There is a perception that we do not have a narrow enough focus and
the challenge that we have there is to demonstrate that we do have
focus on the IP communications software, but what we know is technology
and that IP Internet protocol technology is applicable across
multiple industries.
TWST: When you sit down with investors, what are
the two or three reasons you would give them to take a look at
NewMarket?
Mr. Verges: The three primary reasons we give them to
look at NewMarket are our approach to actually getting additional
sales for early technology by having a traditional service business
that is a Microsoft-certified solution provider. We have certified reseller
relationships with Cisco and Sun Microsystems, to name just a
few, and we have trusted vendor relationships with our customers.
Going into these trusted vendor relationships is the best way to sell
an emerging technology. We know our customers and they know us.
We know how to propose, and how our new technology might create
differentiation for our customers or a new line of business. That
makes our ability to sell an emerging technology much greater than
the traditional startup technology companies that has no customers to
begin with. The second primary reason is our strategy to monetize
with the return on investment in each of the subsidiary emerging
technology companies through issuing equity dividends.
And the third reason is that NewMarket is growing rapidly
through organic growth and acquisitions. We are very proud of our
growth from $2.3 million in 2003 to $25 million in 2004 and our revenue
forecast for 2005 of $75 million.
TWST: Thank you.
PHILIP VERGES
Chairman, CEO & CFO
NewMarket Technology Inc.
14860 Monfort Drive
Suite 210
Dallas, TX 75254
(972) 386-3372
(972) 386-8165 - FAX
www.newmarkettechnology.com
© 2005 The Wall Street Transcript, 67 Wall Street, NYC 10005
Tel: (212) 952-7400 • Fax: (212) 668-9842 • Website: www.twst.com
Hello Pete,
Yes I do see that. It is also in Yahoo.
http://finance.yahoo.com/q/mh?s=NMKT.OB
I cannot wait for it to move to AMEX and from there we can get more exposure to institution investors, mutual funds etc... The news today I think is positive. More exposure for the company the better. I have been telling some of my close friends about the company and they were able to get in last Friday and they were happy as can be :) I hope that we the 4th QTR would pose a profit for the year. This will really rock then. Good luck to you and all. Peace on earth.
Augie
Hey Intercepter, Congrats to you too. Where have you been? Have not heard from you in a while. This board needs your all knowing knowledge about the company. You have great DD's and I miss reading them. Anyway, Good luck to you and all. Peace on earth.
To all, Congrats to all that held on. We will be rewarded soon. Nice run. Looking for a nice run all week this week. Way to go NMKT. Good luck to all and peace on earth.
News TOday FEb 14, 2005
Good luck to all and peace on earth.
http://biz.yahoo.com/bw/050214/145882_1.html
Press Release Source: NewMarket Technology Inc.
NewMarket Technology Inc. Releases Letter to Shareholders on 2005 Plans for $75 Million in Revenue, $10 Million in Dividends and Future Acquisitions
Monday February 14, 11:22 am ET
CEO Details Organic Growth and Impending Defense Technology Systems Transaction; Second Shareholder Letter Tomorrow on More 2005 Plans
DALLAS--(BUSINESS WIRE)--Feb. 14, 2005-- NewMarket Technology Inc. (OTCBB:NMKT - News) today released a letter to shareholders providing detail on the Company's unique business model and plans to grow from $25 million in revenue in 2004 to $75 million in revenue in 2005. The letter also includes detail on the Company's plans to declare an estimated $10 million in dividends in 2005. The CEO explains how the Company's business model and dividend plan stand to establish NewMarket as a recognized leader in the emerging technology market. The letter is included in its entirety in this release.
ADVERTISEMENT
Dear Fellow Shareholders:
We are midway through the first quarter of fiscal 2005. The Company is approaching the first of several significant events scheduled this year that we believe will establish NewMarket as a recognized leader in the emerging technology market. The Company is building a new category of emerging technology business and this letter to shareholders is intended as part of our overall plan to keep shareholders abreast of our efforts to construct a new and as of yet uncategorized business model.
The term "recognized leader" should not be considered lightly. With a market capitalization value of $50 million, NewMarket plans this year to issue an estimated $10 million worth of dividends to shareholders representing 20 percent of the Company's total market capitalization. It is unlikely that any other company currently listed on the Over the Counter Bulletin Board Exchange (OTCBB) will issue any dividends that equal a similar percentage of the issuing company's market capitalization or for that matter, such dividend examples will be far and few between on any exchange. It is NewMarket's unique dividend strategy that management believes will establish the Company as a recognized leader in the emerging technology market.
Again, the first significant event enabling the first of three or more dividends to be issued this year will take place later this week. Defense Technology Systems Inc. (OTCBB:DFTS - News) will meet with NewMarket this week in Dallas to finalize the previously announced transaction between the two companies (more detail included below) This event will be a major benchmark in the history of NewMarket resulting from a plan initiated over three years ago and executed upon vigorously throughout the last three years.
NewMarket has forecasted dramatic revenue growth to $75 million in 2005 from $25 million in 2004. In addition, we are forecasting $10 million in dividends. NewMarket will continue to acquire new companies as it has over the past two years. The Company will also continue to strengthen its foundation through expanding cash reserves and graduating to a more regulated exchange where more institutional investors will discover NewMarket. This letter is to communicate in detail, as it applies to our uncategorized business model, on our organic sales efforts, expected dividends and ongoing acquisition plans. In a second Shareholder Letter to be released tomorrow, Tuesday February 15th, we will address the additional company initiatives that will build our foundation, such as our recent American Stock Exchange (Amex) application.
Business Model
The NewMarket business model is really a simple concept, though much work has gone into establishing the basic core of the business model and bringing the company to the pending dividend benchmark event. NewMarket is a publicly listed Company for two reasons: capital formation and shareholder liquidity. NewMarket acquires entrepreneurial emerging technology companies and makes modest investments in the acquired companies by gaining access to capital through NewMarket's publicly listed security. NewMarket then spins the now more mature emerging technology company into a separate publicly listed micro cap company and distributes equity in the new stand alone company to all of the shareholders of NewMarket by issuing a shareholder dividend.
Over the last two years, NewMarket has acquired equity interests, most as a majority interest, in eight entrepreneurial emerging technology companies. The combination of NewMarket's Homeland Security emerging technology subsidiary with DFTS will be the first spin-off and dividend where shareholders have the opportunity to receive equity in a standalone, independent publicly listed company. NewMarket will continue to acquire, assist in building and then spin-off emerging technology companies.
Organic Growth Forecast
NewMarket succeeds in establishing initial emerging technology sales by introducing emerging technologies through previously established and trusted vendor relationships. In addition, to investing in and grooming promising emerging technology companies, NewMarket maintains a traditional technology services business which provides the company with recurring revenue. NewMarket is a certified partner with Microsoft (Nasdaq:MSFT - News), Cisco Systems (Nasdaq:CSCO - News), and Sun Microsystems (Nasdaq:SUNW - News). With these credentials, NewMarket is expanding its traditional technology service sales to correspondingly expand its ability to introduce more emerging technology products to market.
While the traditional technology service business is becoming more competitive everyday, resulting in increasing pressure on profits, NewMarket's business model actually enables increased profits. By combining the traditional technology service business with the emerging technology value-added, not only are the higher profits from the emerging technology products blended in for improved net profits, an entirely new income line is added to the overall business -- equity income through equity dividend spin-offs.
With each spin-off, NewMarket will declare a shareholder dividend and issue equity in the new publicly listed company to shareholders. Likewise, the Company itself will have the ability to monetize the equity in the spin-offs that is retained on the balance sheet and add equity income to the traditional technology service sales and emerging technology product sales. When practical, NewMarket plans to retain a 51% or greater ownership in the spin-offs in order to be able to consolidate the financials of the new company into NewMarket's financial results.
In 2003 and 2004, NewMarket established a traditional technology service customer base through merger and acquisition. NewMarket will continue to geographically expand its customer base through merger and acquisition, but the vast majority of revenue growth will come from the organic expansion of the acquired customer base and exploiting the cross-selling opportunities identified going forward. NewMarket expects the revenue growth from the $25 million in 2004 to $75 million in 2005 to come largely from an increase in traditional technology service sales as well as an increase in emerging technology product sales.
Equity Dividends to Shareholders in 2005
The first anticipated dividend resulting from the culmination of NewMarket's business model introduced three years ago will come from the previously announced transaction to combine NewMarket's Homeland Security subsidiary with DFTS. NewMarket and DFTS meet this week in Dallas to finalize the transaction which will include the distribution of an estimated 10 million DFTS shares to NewMarket shareholders.
NewMarket is currently in negotiations that will result in similar dividends to NewMarket shareholders both later this year and into 2006. A second spin-off and dividend announcement can be anticipated before the end of the First Quarter 2005. The Company anticipates issuing up to three equity dividends in 2005 totaling an estimated $10 million in dividend value.
Ongoing Acquisitions
Today, NewMarket is concentrating on emerging technologies in three primary industry segments -- Telecommunications, Healthcare and Homeland Security. NewMarket will continue to pursue acquisitions in all three of these segments for the foreseeable future. NewMarket has also recently announced expanding into the Financial Services segment. Shareholders can anticipate a first acquisition in the Financial Services arena prior to the end of the Second Quarter 2005. Furthermore, NewMarket will continue to geographically expand its traditional technology service business through ongoing acquisitions. Shareholders can look for an announcement of an acquisition in South Latin America by the end of First Quarter or early Second Quarter.
NewMarket will continue to form capital through its public security for investment in new acquisitions. As the Company has expanded dramatically over the last year, the quality of capital available to the Company has likewise improved. Shareholders can anticipate a strategic investment announcement within the next few weeks intended to drive the acquisition campaign outlined above. The Company is embarking on developing capital formation directly into NewMarket's portfolio of emerging technology companies. Once NewMarket establishes a spin-off and equity dividend track record, we anticipate improved opportunities to access investment directly into portfolio emerging technology companies intended for eventual spin-off. Such ability to form capital with multiple securities is expected to dramatically accelerate NewMarket's ability to increase revenue growth and dividend issuance.
Management at NewMarket is excited by the planned course of events in 2005 and in particular, the pending DFTS transaction. We believe the closing of the DFTS transaction will gain notable recognition in the emerging technology industry and establish NewMarket as the company to watch as one of the most promising prospects for revitalizing the emerging technology marketplace. With one to two more similar spin-offs and equity dividend transactions, we believe that NewMarket be well on its way to achieving recognized leader status.
Best Regards,
Philip Verges
CEO and Chairman
NewMarket Technology Inc.
About NewMarket Technology, Inc. (www.newmarkettechnology.com)
In 2002, NewMarket launched a business plan to continuously introduce emerging communication technologies to market. The plan included a financing model for early technologies and an approach to creating economies of scale through a specialized service and support organization intended specifically for the emerging technology industry. The Company posted six consecutive profitable quarters through 2003 and established an annualized $15 million in revenue. In 2004, the Company diversified its communications technology offering into the healthcare and homeland security industries with the respective acquisitions of Medical Office Software Inc. and Digital Computer Integration Corp (DCI). The Company has expanded sales into Asia, Latin America and Canada through the acquisitions of Infotel Technologies in Singapore, RKM IT Solutions of Caracas, Venezuela, and Logicorp respectively. The company recently announced its first spin-off with the acquisition by Defense Technology Systems (OTCBB: DFTS - News) of NewMarket's Homeland Security subsidiary, DCI, for stock. NewMarket shareholders will receive a property dividend in the form of DFTS stock at a later date.
This press release contains statements (such as projections regarding future performance) that are forward-looking statements as defined in the Private Securities Litigation Reform Act of 1995. Actual results may differ materially from those projected as a result of certain risks and uncertainties, including but not limited to those detailed from time to time in the Company's filings with the Securities and Exchange Commission.
--------------------------------------------------------------------------------
Contact:
NewMarket Technology, Inc.
Rick Lutz, 404-261-1196
ir@ipvoice.com
www.newmarkettechnology.com
www.ipvoice.com
--------------------------------------------------------------------------------
Source: NewMarket Technology Inc.
FRom IR FEbruary 11, 2005 Number 3
Good luck to all and peace on earth.
-----Original Message-----
From: LCGroup [mailto:lcgroup@mindspring.com]
Sent: Friday, February 11, 2005 1:48 PM
To: LCGroup
Subject: NMKT - DFTS M&A Agreement Update
To NewMarket Technology and Defense Technology Systems shareholders:
Management of NewMarket Technology, Inc. (OTCBB:NMKT) and Defense Technology Systems, Inc. (OTCBB:DFTS) will meet in Dallas on Wednesday, February 16th to finalize the definitive agreement to combine NMKT’s Homeland Security subsidiary with the operations of DFTS.
DFTS Shareholder Structure and Financial Reporting
NMKT will become the majority shareholder of DFTS and accordingly will maintain the revenue and expense from all DFTS operations on the DFTS books as well as the revenue and expense being reported independently in the DFTS financials, yet will retain the ability to report consolidated financials in NMKT. NMKT shareholders will receive a distribution of DFTS shares that will be at a ratio to be finalized in the above referenced meeting. DFTS will include DCI's revenues in the combined company's (DFTS) financials.
DFTS Financial Forecast for 2005
NMKT ‘s Homeland Security subsidiary has a trailing 12 months of $5 million in profitable revenue and a 2005 revenue forecast of a profitable $8 million. The combined operations of DFTS have a $10 million revenue forecast before any consideration of additional acquisitions. DFTS (through DCI) is in current acquisition negotiations with two additional companies with combined sales in excess of $20 million.
Market Strategy
The new DFTS will concentrate on bringing technology solutions to Cities and Developing Economic Allied Countries that enable pre-emptive, early warning and resilient response capabilities against terrorist threats. Attached is an article in Firehouse, a fire fighters trade magazine, featuring a computer produced by DCI , and, therefore, soon by DFTS, that integrates multiple third party technologies to provide fire fighters with pre-fire assistance.
From IR Feb 11, 2005 NUmber 2
Good luck to all and peace on earth.
-----Original Message-----
From: LCGroup [mailto:lcgroup@mindspring.com]
Sent: Friday, February 11, 2005 1:02 PM
To: LCGroup
Subject: NewMarket Technology Inc.(OTCBB:NMKT) Announces 3rd Trade Mission to China in May
NewMarket Technology Inc. Announces 3rd Trade Mission to China in May
NewMarket Launches M&A Strategy in China Benchmarked by JanuaryAcquisition of Gaozhi Communications with $3 Million Revenue and 2005$10 Million ForecastDALLAS, Feb 11, 2005 (BUSINESS WIRE) -- NewMarket Technology Inc. (OTCBB:NMKT) announced plans today for its third Investor Trade Mission to China in May. NewMarket has already established operations in China with the recently announced acquisition of Gaozhi Communications and is in the process of identifying potential partners and clients. The definitive acquisition agreement was executed by NewMarket Technology and the shareholders of Gaozhi Communications on Friday, Jan. 15, 2005. This acquisition is the first step in an overall strategy to extend the NewMarket business model into China. The purpose of the NewMarket business model is to provide early capital formation to fund the rapid growth of emerging technology companies and to accelerate the initial sales by introducing the products and services of an early technology company into an existing complementary customer base with an established sales force. Shareholders are benefited in this business model by receiving equity dividends in each of the acquired companies when the acquired companies are eventually spun-off into stand-alone, independent, publicly-listed companies. The Gaozhi acquisition agreement is currently under a routine review by Chinese authorities and an amended SEC Form 8K will be filed upon the completion of the required review. Gaozhi Communications has operated as a subsidiary of Gaozhi Science and Technology, a prominent communications technology organization in Shanghai, China, with over U.S. $30 million in annual sales. Gaozhi Communications was initially formed in partnership with a business partner in Singapore for the purposes of developing advanced networking hardware. As such, Gaozhi Communications has been reporting as a research and development organization. However, as a result of the acquisition agreement, Gaozhi Communications is launching its first direct sales initiatives utilizing its long term business relationships developed throughout China. Significantly, Gaozhi management has already closed on the initial contracts necessary for the eventual fulfillment of the contractual terms agreed to by Gaozhi Communications for a minimum of $3 million in revenue in the first year of operations. In order to facilitate NewMarket Technology's China strategy, the company has formed a Nevada Corporation subsidiary company, NewMarket Technology China. NewMarket Technology China owns 90 percent of the stock of Gaozhi Communications and NewMarket Technology owns a 51 percent interest in NewMarket China. Shareholders of Gaozhi own 40 percent of the stock of NewMarket China. The remaining nine percent is owned by a third party for the consulting, negotiating and funding of the transaction. In a separate transaction, NewMarket China has closed on $300,000 in debt financing. In 2005, NewMarket Technology plans to register the shares of NewMarket China and close on additional targeted acquisitions in China with the eventual goal to spin-off the acquisitions into additional independent, publicly-listed companies. All shareholders and interested investors are welcome and encouraged to participate in these Trade Missions to facilitate their due diligence regarding the NewMarket strategy in China. The next Trade Mission will be conducted in May. If interested please contact Jessica Burnett at 972-386-3372 ext. 3063 or at jburnett@newmarkettechnology.com.A NewMarket China PowerPoint Presentation is available to interested investors by contacting LCGroup@mindspring.com About NewMarket Technology, Inc. (www.newmarkettechnology.com) In 2002, NewMarket launched a business plan to continuously introduce emerging communication technologies to market. The plan included a financing model for early technologies and an approach to creating economies of scale through a specialized service and support organization intended specifically for the emerging technology industry. The Company posted six consecutive profitable quarters through 2003 and established an annualized $15 million in revenue. In 2004, the Company diversified its communications technology offering into the healthcare and homeland security industries with the respective acquisitions of Medical Office Software Inc. and Digital Computer Integration Corp (DCI). The Company has expanded sales into Asia, Latin America and Canada through the acquisitions of Infotel Technologies in Singapore, RKM IT Solutions of Caracas, Venezuela, and Logicorp respectively. The company recently announced its first spinoff with the acquisition by Defense Technology Systems (OTCBB:DFTS) of NewMarket's Homeland Security subsidiary, DCI, for stock. NewMarket shareholders will receive a property dividend in the form of DFTS stock at a later date. This press release contains statements (such as projections regarding future performance) that are forward-looking statements as defined in the Private Securities Litigation Reform Act of 1995. Actual results may differ materially from those projected as a result of certain risks and uncertainties, including but not limited to those detailed from time to time in the Company's filings with the Securities and Exchange Commission. SOURCE: NewMarket Technology Inc. NewMarket Technology, Inc. Investor Relations Rick Lutz, 404-261-1196 ir@ipvoice.com www.newmarkettechnology.com www.ipvoice.com Copyright (C) 2005 Business Wire. All rights reserved.
From IR Feb 11, 2005
Good luck to all and peace on earth.
-----Original Message-----
From: LCGroup [mailto:lcgroup@mindspring.com]
Sent: Friday, February 11, 2005 10:02 AM
To: LCGroup
Subject: NewMarket Technology Inc. (NMKT) Announces Provisional Patent for Netsco Wireless Value Asset and Shipment Tracking System
NewMarket Technology Inc. Announces Provisional Patent for Netsco Wireless Value Asset and Shipment Tracking System
DALLAS, Feb 11, 2005 (BUSINESS WIRE) -- NewMarket Technology Inc. (OTCBB:NMKT) announced today receiving a Provisional Patent on Netsco's Wireless Value Asset and Shipment Tracking System (VAST). Netsco, a NewMarket subsidiary, is a software product and services company that specializes in mission-critical distributed computing solutions for large scale enterprise applications. Netsco jointly developed the system with Innova, Inc. In addition, Netsco has developed a host of proprietary Radio Frequency Identification (RFID) systems and is currently engaged in a number of RFID pilot projects around the world. The Value Asset and Shipment Tracking System is a wireless monitoring, tracking, evaluating and response system where any product and any system can be monitored and tracked globally using multiple wireless technologies. The VAST has multiple industrial and military applications. Netsco, a Sun Microsystems (Nasdaq:SUNW) Partner, has conducted several international Executive RFID Summits and has won a number of very strategic RFID pilots jointly. To date, Netsco was the key contributor in Sun Executive RFID Summits in Turkey and Israel. A Netsco White Paper on RFID can be accessed on Sun Microsystem's web page by entering "Netsco" in the search field. About NewMarket Technology, Inc. (www.newmarkettechnology.com) In 2002, NewMarket launched a business plan to continuously introduce emerging communication technologies to market. The plan included a financing model for early technologies and an approach to creating economies of scale through a specialized service and support organization intended specifically for the emerging technology industry. The Company posted six consecutive profitable quarters through 2003 and established an annualized $15 million in revenue. In 2004, the Company diversified its communications technology offering into the healthcare and homeland security industries with the respective acquisitions of Medical Office Software Inc. and Digital Computer Integration Corp (DCI). The Company has expanded sales into Asia, Latin America and Canada through the acquisitions of Infotel Technologies in Singapore, RKM IT Solutions of Caracas, Venezuela, and Logicorp respectively. The company recently announced its first spinoff with the acquisition by Defense Technology Systems (OTCBB:DFTS) of NewMarket's Homeland Security subsidiary, DCI, for stock. NewMarket shareholders will receive a property dividend in the form of DFTS stock at a later date. This press release contains statements (such as projections regarding future performance) that are forward-looking statements as defined in the Private Securities Litigation Reform Act of 1995. Actual results may differ materially from those projected as a result of certain risks and uncertainties, including but not limited to those detailed from time to time in the Company's filings with the Securities and Exchange Commission. SOURCE: NewMarket Technology Inc. NewMarket Technology, Inc. Rick Lutz, 404-261-1196 ir@ipvoice.com www.newmarkettechnology.com www.ipvoice.com
From IR yesterday.
-----Original Message-----
From: LCGroup [mailto:lcgroup@mindspring.com]
Sent: Tuesday, February 08, 2005 10:50 AM
To: LCGroup
Subject: NewMarket Technology (OTCBB:NMKT) In Wall Street Reporter Magazine-- Telecommunications Issue
NewMarket Technology, Inc.(OTCBB:NMKT) appeared in the recent Wall Street Reporter Magazine. Click on the link below (PDF required). The NMKT interview is on Page 16.
http://www.wallstreetreporter.com/magazine/05/Telecom/163_Telecom_online.pdf
FAQ's regarding NMKT:
· American Stock Exchange (AMEX) application for listing is in process.
· Fourth Quarter and Annual Report to be filed on or before the due date of 31 March.
· Finalization of the terms of the Digital Computer (DCI) subsidiary spinoff into Defense Technology Systems (OTCBB:DFTS) will be announced shortly. Terms already decided include: NMKT to have a greater than a 51% ownership of DFTS after a equity dividend distribution of DFTS shares to NMKT shareholders of record (record date TBA). Expected ratio is 1 share of DFTS for every 10 shares of NMKT owned.
FYI
LC Group
404-261-1196
New, I believe it is one of the other company that they are trying to spin off. No details so far. On that email I got from IR it looks like it will be one of the Chinese company. Not sure. Just guessing here. Good luck to all and peace on earth.
Highhopes,
What we really need is institutional investors. Retail is not going to cut it. If we want NMKT to take off... Institutional Investor is the answer. To do that... We need to get out of OTCBB. AMEX is the answer and the sooner we get there the better. I believe it will be soon but exactly when, I have no answer to that. I am just waiting patiently and hoping for the best. About the management team you are right. They do have integrity and I hope they do not disappoint us. About the weak hands, I believe they just wanted to lock in their profit and wait. I am sure that is what happened to some. I myself have played the market as well. Good luck to you and all. Peace on earth.
Augie
New and High, I believe they have until end of March to file their Q4 and for the year earnings. With regards to AMEX, that is everyone's guess. Hopefully not too long. The only thing that I have to say with NMKT, you just have to be patient. So far, Phil has not disappointed me yet. He has reached and fulfilled all his projections. I am counting on that. Good luck to all and peace on earth.
News Today
Good luck to all and peace on earth.
Augie
-----Original Message-----
From: LCGroup [mailto:lcgroup@mindspring.com]
Sent: Tuesday, February 01, 2005 12:22 PM
To: LCGroup
Subject: NewMarket Technology (OTCBB:NMKT) Anticipates Multimillion Dollar, Multiple Year Contracts to Lead Revenue Growth in 2005
NewMarket Technology Inc. Reports Over $1 Million in New Strategic Sourcing Contracts in January and 2005 Sales Pipeline Exceeding $100 Million
Company Anticipates Multimillion Dollar, Multiple Year Contracts to Lead Revenue Growth in 2005 to $75 Million in Profitable Booked Revenue
DALLAS--(BUSINESS WIRE)--Feb. 1, 2005-- NewMarket Technology Inc. (OTCBB:NMKT) announced today that the company had signed over $1 Million in new Strategic Sourcing sales in January. NewMarket's business model is centered on providing core information technology services to their clients. Within the core information technology services relationship, NewMarket then introduces emerging technology solutions that can enhance the client's overall business. As part of tits core technology services, NewMarket has established official solution partnerships with Microsoft (Nasdaq:MSFT), Cisco Systems (Nasdaq:CSCO), and Sun Microsystems (Nasdaq:SUNW). In parallel to its core technology services offering, NewMarket has acquired four proprietary emerging technology companies and affiliate equity interests in four additional proprietary technology companies, all of which provide valued-added functionality to the core technology products of Microsoft, Cisco and Sun. NewMarket's core information technology service clients include, for example, Siemens (NYSE:SI), Alcatel (NYSE:ALA), and Bayer (NYSE:BAY). For additional information regarding NewMarket's core information technology services, investors and potential clients are encouraged to visit the Strategic Sourcing web site at www.newmarketsourcing.com.
NewMarket's strategy to aggressively grow a substantial base of recurring revenue is focused on selectively outsource specific core technology functions. Outsourcing contracts include terms to introduce next generation technology solutions from NewMarket's portfolio of emerging proprietary technologies. Outsourcing contracts will be multi-year agreements that include a next generation technology migration schedule. NewMarket has established a sales pipeline in excess of $100 million dollars to date. NewMarket's 2005 revenue forecast is a profitable $75 million.
"The reason NewMarket will succeed as an emerging technology company is that we are also a core technology service company," said Philip Verges, CEO of NewMarket Technology Inc. "It is unrealistic to think to our clients would consider flipping a switch to turn off a legacy technology and overnight turn on one of NewMarket's proprietary emerging technology products. Accordingly, we have approached our technology clients with a competitive core technology service offering augmented with a plan to migrate that core technology onto a next generation platform. Consider Voice over Internet Protocol, or VoIP, as an example. VoIP is a superior communication technology in comparison to the Public Switched Telephony Network or PSTN. However, existing PSTN solutions include equipment investment and multi-year service contracts. No corporation could afford to walk away from equipment investment or endure the financial penalties associated with breaking multi year contracts. NewMarket's approach is to immediately provide operational efficiencies through outsourcing a corporation's telecommunications functions and include a plan to migrate that function onto a next generation VoIP platform as the legacy equipment is depreciated and PSTN contracts expire."
About NewMarket Technology, Inc. (www.newmarkettechnology.com)
In 2002, NewMarket launched a business plan to continuously introduce emerging communication technologies to market. The plan included a financing model for early technologies and an approach to creating economies of scale through a specialized service and support organization intended specifically for the emerging technology industry. The Company posted six consecutive profitable quarters through 2003 and established an annualized $15 million in revenue. In 2004, the Company diversified its communications technology offering into the healthcare and homeland security industries with the respective acquisitions of Medical Office Software Inc. and Digital Computer Integration Corp (DCI). The Company has expanded sales into Asia, Latin America and Canada through the acquisitions of Infotel Technologies in Singapore, RKM IT Solutions of Caracas, Venezuela, and Logicorp respectively. The company recently announced its first spinoff with the acquisition by Defense Technology Systems (OTCBB:DFTS - News) of NewMarket's Homeland Security subsidiary, DCI, for stock. NewMarket shareholders will receive a property dividend in the form of DFTS stock at a later date.
This press release contains statements (such as projections regarding future performance) that are forward-looking statements as defined in the Private Securities Litigation Reform Act of 1995. Actual results may differ materially from those projected as a result of certain risks and uncertainties, including but not limited to those detailed from time to time in the Company's filings with the Securities and Exchange Commission.
Contact:
NewMarket Technology, Inc.
Investor Relations
Rick Lutz, 404-261-1196
ir@ipvoice.com
www.newmarkettechnology.com
www.ipvoice.com