Northstar Electronics Inc (fka NEIK)

[letzgetrich]

NEIK Shareholders (Owners of the Company)

Over a month ago, I posted the following:

http://investorshub.advfn.com/boards/read_msg.aspx?message_id=123059407

And as of last Friday, July 1st, stupidity started to enter the equation. The press release yesterday showed even more stupidity is entering the equation.

Initially there was a shareholder interactive call. Now you can only listen to the CEO talk for 30 minutes, and answer selected "Questions" sent from the shareholders.

How do we know what questions are going to be ignored? How do we know if the questions from the shareholders are not conveniently selected by the CEO?

I have a couple questions.

These questions are from a press release dated February 2, 2016, the CEO states:

"We believe that in 2016 Q1/Q2, NSEL should complete negotiations with an international aerospace company and sign an agreement for the rights to a single engine turboprop commercial aircraft."

What is the backup plan if the negotiations for the international aerospace company fail and no agreement is signed?

You state in this sentence: "This plane has an excellent performance history and new enhancements are now being implemented."

I'm assuming this plane is now in the air. What kind of certification timetables are you expecting with the new enhancements?

In this sentence, "NSEL plans to initiate production and roll out a marketing program aimed at introducing the new version of the plane in the world marketplace."

What is the extent of NSEL's involvement in production? Final assembly? Do they get a 'green' plane delivered from overseas? Is the Canadian operation a completion center? Is NSEL'S manufacturing involvement going to be limited to the enhancements of an existing plane? How can NSEL be involved with the immediate manufacturing and roll out if there are currently no operations? Please explain in detail how NSEL operations are intended, and how this creates value for NEIK shareholders.

This paragraph:

"Northstar has been actively pursuing a capital raise to be utilized for its own public company activities and for NSEL's operational needs. Our goal for 2016 Q1/Q2 is to use these funds to support, amongst other activities, the development of NSEL's corporate Quality Infrastructure."

The management team states the company is pursuing financing, yet the business model for NEIK shareholder value is not clearly outlined. It appears that NEIK will use the U.S. public equity markets as a financing vehicle for other subsidiaries and operations. Please explain how using a U.S. company to raise capital to finance a Canadian entity, that currently has no operations, creates value for the people purchasing stock in NEIK?

Throughout this press release, NSEL is consistently shown to be the primary business operations. NSEL should complete negotiations.......NSEL plans to initiate production.....NSEL goals are to sign joint marketing agreements..........etc.

On a filing dated March 2, 2015 with the SEC on form 8-K, you state: "Northstar Electronics, Inc. (NEIK) owns sixty percent (60%) of the shares in the new company (NSEL) and Sealand Aviation Ltd. owns forty percent (40%) of the shares.

Who owns Sealand Aviation Ltd.? Can the shareholders of NEIK expect to see related party transactions disclaimers in future audited financial reports?

Please explain how NEIK investors will contribute 100% of the financing to NSEL and only receive 60% of the potential earnings, is a good deal for NEIK investors since NSEL was created from scratch, and there was no business "good will" present with NSEL?

What does lack of clarity equal for current owners of NEIK? Expensive (high dilution) Financing.

I won't even start to ask some really difficult questions.