Transcription of Small Cap Voice interview with David Keaveney:
(Please pardon any typos or mistakes.)
SCV: What’s the significance of retiring the OS SB preferred stock?
DK: What it does in a nutshell is it protects our shareholders from dilution. And the important fact is that the preferred shares had a 100:1 What’s called a super voting right to the common stock and the retirement of these preferred shares basically eliminated roughly the equivilant of 300 million shares to the market.
SCV: that’s the kind of dilution the shareholders want to avoid isn’t it? What else has the company been up to and been able to accomplish this year?
DK: Throughout 06 we’ve changed our business model to compliment Quadriga Motorsports. Under Quadriga we’re focusing on Spray'NShine which is our new car care product line and GS610 our high performance brake fluid.
SCV: Let’s talk about Spray'NShine?
DK: Spray'NShine is named for a 2 time Indy 500 winner by the name of Arie Luyendyk, we have a relationship with his son Junior who’s driving in the pro series as well. Spray'NShine is a waterless car wash and wax and its in an aerosol can there’s no water required and you simply spray it on and wipe it off. It doesn’t scratch the car it has foaming action that actually lifts grime up and away from the surface. It leaves a wax protectant and a pretty awesome shine.
SCV: When’s that going to be hitting the market if it hasn’t already done so?
DK: Actually it has it was in mid-June when we released it and so far it’s been a great sensation here in Arizona.
SCV: So you’ve launched it regionally and you plan on getting out Nationally?
DK: We are woking with a group by the name of RJE Associates, they are TV shopping channel experts, these guys introduced a pretty well known product called cold ease its a cough drop that was introduced through QVC, where about 50,000 units per month were sold. Now cold ease is in a national retail chain.
SCV: So you’re hoping for that same kind of success for Spray N Shine?
DK: Well I don’t want to put the cart in front of the horse but kind of put 2 and 2 together RJE does have the relationships with the TV shopping channels, they have great success with QVC and we’re actually knocking on doors right now. But we also brought in a group we refer to as the Steiner Brothers. Eric and Kevin Steiner and they have a tremendous history of placing retail products in name brand stores like Home Depot, Walmart, Target and we feel that both of these organizations, Steiner Bros. and RJE & Assoc. are a huge asset to Spray N Shine and are a very viable resource for market penetration. Right now our marketing efforts are going on a national wide campaign, we’re focused here in Arizona since this is where we’re based and coincidentally so are the Luyendyk’s, but we feel the efforts with RJE and the Steiner Bros. could be extremely, extremely big for us.
SCV: Lets talk about GS610
DK: GS610 is a high performace brake fluid we have a maximum boil point of 626 degrees versus 590 to 600 for most other fluids. And its taken some time but it is becoming recognized as the brake fluid of choice around the race track. Recently we’ve been approached by 2 of Nascars top teams. One being Joe Gibbs racing the second being Evernham Motorsports. Additionally we’re being approached by brake pad manufacturers and friction performance companies that have an interest in strategic alliances with GS610.
SCV: What’s next for MSEP?
DK: Actually what we’re doing is really transitioning ourselves from the single entity that we had which was scalecars, our dicast car subsidiary and we’re exploring some significant opportunities for scalecars that are very unique to MSEP and I can’t get into detail today but I promised to interview so I can explain that, looking to the future we’re continubg to take advantage of opportunities. GS610 and Spray N Shine are 2 huge potentials for us right now. Moving into the future there are several other projects that we’e working on that could also play out to be very big contributors to us down the road. Fundementally we are positioned, in my opinion, extremely well, we continue to increase our profit margins and we’re controlling our costs while were developing new and innovating ideas to support our effort in moving forward. I honestly believe that MSEP is an entirely different company than it was since the last time we talked, and in the next 9 - 10 months I think we’ll be extremely different as well.
Stuart Smith then schmoozes DK and wraps it up.
