Tuesday, October 03, 2000 9:19:19 PM
Struthers CEO sends email to the ShareHolders Base-
From: directors@struthersinc.com (Struthers, Inc.) 9:38 PM
Subject: From the Desk of Douglas W. Beatty, Ph.D., President/CEO, Struthers, Inc.
To: NetShoe22@hotmail.com
October 3rd, 2000
Dear Shareholders,
While we wait for the written response from the SEC, I thought it would be of interest to share some thoughts with you on the industry and what I am able to discuss with you with respect to our achievements over the last few weeks.
Two points I would like to cover real quick before you read such a lengthy letter are the following: If you are having any difficulty whatsoever in deciding whether to attend the shareholders meeting on October 28th, it is my opinion that you may want to consider coming.I'll state this again.in my opinion you will not want to miss this meeting.we have planed a great meeting and realize that this is the first for Struthers, inc., one that you can tell your grand children about.because you were here.now if you can't make it, the whole event will be filmed including the interviews with our staff, folks from the industry and some of our clients who will also be attending and introducing themselves to the shareholders. By the way Charleston is
beautiful this time of year! Secondly, I have written this letter to provide insight and information for potential investors, new investors and our great shareholder base and should be used as a source of information on the industry and some of the areas we are focusing on.
State of the Industry, and why I believe your Company is position to make a difference?
The porcine industry is a $184 billion per year industry! The additional animal reproductive biotechnology area that we are making a major contribution to actually dwarfs this number. For now, allow me to comment on the pork industry and further in my discussions I will comment on our role in other animal husbandry production and why we have chosen to pursue and advance our technology to reach those industries that we are now in a position to capture.
Your Company is privileged to be a member of the National Pork Producers Council. This keeps us well informed to the market potential in the hog producing industry. We are also members of the International Embryo Transfer Society [IETS] and this membership allows us the opportunity of being informed of new developments in bioresearch and embryo transfers. By being members in good standing this allows your Company the opportunity to present research papers and always be on the cutting edge of industry technology. Data currently being compiled on hundreds of inseminations and embryo transfers will be submitted for publication.
A recent report received in our office from the National Pork Producers Council informs us that the U.S. pork industry has
experienced unprecedented growth in the decade of the '90s. More pork will be produced [nearly 19 billion pounds] and more hogs slaughtered [likely more than 99 million-head] in the USA in the last reported year [1998]; more than ever before. That growth resulted in record slaughter of over 101 million-head and record pork production of roughly 19 billion pounds in 1998.
The economic impact of the pork industry on rural America is immense. Farm receipts from hogs placed the industry in the 4th and 5th position [financially] among all farm commodities. Annual farm sales usually exceed $10 billion while the retail value of pork sold to consumers exceeds $30 billion. In fact, farm income from the sale of hogs set a new record of $13.2 billion in 1997.
The pork industry benefits more than just farmers! Pork production means jobs and economic opportunity for thousands of rural communities. The "value-added" nature of pork provides employment well beyond the farm. Based on a 1995 study by researchers at Iowa State University, the U.S. pork industry is responsible for over $64 billion in total domestic economic activity. Through direct, indirect and induced effects, the pork industry supports over 600,000 jobs and adds over $27 billion of value production inputs. The pork industry is a major contributor to local, state and national economies and governments.
Today there are approximately 114,000 pork operations compared to nearly 3 million in the 1950s. Hog farms are grown in size, too, while reducing in numbers. Over 80 percent of the hogs are grown on farms producing 1000 or more hogs per year while over half are growing on farms producing 2000 or more hogs per year. These operations, which are often very technically sophisticated, are still predominantly individual family farms. These farms are our clients.
The geographic location of pork production is shifting as well. While the traditional Corn Belt represents the overwhelming share of production, growth is also occurring in "non-traditional" hog states such as Texas, Colorado, Oklahoma and North Carolina [which ranked 14 in pork production 30 years ago and now ranks 2nd in total hog numbers]. Similarly, the global market offers tremendous growth potential for U.S. pork producers. Pork is the world's "meat of choice" by far, with approximately 43% share of the world's meat protein market. The U.S. pork industry is steadily increasing its share of this vast world market exporting over 6.5% of its production in 1998 after becoming a net exporter in 1995 for the first time since
1952. In 1999 the U.S. pork export market ranked second after Canada, boasting many of the world's most cost-efficient producers. The USA is on the verge to capture even more of the global pork business as trade barriers fall under terms of the NAFTA and GATT. And Struthers, your Company, in my opinion will be there to make this happen!
A short excerpt on my trip to the UK, which I believe should help as an analogy to explain why it is important that we have created a solid foundation for this company.
In 1290 King Edward the first, determined to claim land for the Crown, expelled numerous religious groups and peasants from their homes and seized all of their property. The property was turned over to the monks. The monks leased the properties at a rent of 11 cents per annum. The County Hotel, Canterbury, building under its various titles has always served as one of the principal hubs of the local community. It does indeed stand in the center of the city, since the center point of the half-mile circle form the city walls (60 AD) of Canterbury Falls in Whitehorse Lane, 30 or 40 yards away.
Many of the manuscripts relating to the hotel and barely date are preserved in the cathedral library, Canterbury, while further
information may be drawn from other cathedral documents in the British Museum, which I had the pleasure of viewing.
What is so profound is that if anyone had sat looking out of the front window of the County Hotel through the ages, they would have witnessed a large segment of English history. This hotel is located on the old Roman London-Dover Road, since ancient times an important artery in European communications. Before the coming of Railway's most of the traffic with the continent move backwards and forwards along it. The watcher in the window will see William the Norman, fresh from his
victory at Hastings, leading his army up to capture London. He would see the Archbishop Thomas Beckett entering his Cathedral City for the last time in December, 1170 only to be murdered moments later by King Henry's II guards and little later watch Henry the second, ruler of half Europe, hauling barefoot penance up the High Street to the tomb of his old enemy in the cathedral. The watcher will see Richard I back from the crusades after landing at Sandwich in March 1194, and Henry the third coming to his wedding with Eleanor of Provence. The family of Richard the second pushes its way through the mob, which has seized Canterbury and the peasants' revolt in 1381. Nearly every English monarch passes by. Henry the forth, Henry the fifth, and the sixth ride past on pilgrimage; Edward the fourth comes to execute the Mayor of Canterbury for high treason. Henry the eighth, Elisabeth the first and Charles the first, all come in turn. Charles II, after years of exile, passes through after landing at Dover in 1660, on his way to London, to claim his father's throne.
The rest is really history, you know the part about in 1492 Columbus sailed the ocean blue, in the Pinto, Cordoba, and the Sedan De Ville [for some reason the Pinto blew up] and founded the New World. Well we also know that Columbus was out looking for spice, when the wrong way, which actually turned to be the better way because he found a great profit center. Columbus was also told that the world was flat, I believe he proved that theory wrong. It is also interesting to note, that Columbus used three ships. Why not one big boat? My theory is that he wanted to diversify and not put all of his "eggs" in one basket...good move. We have also used this strategy in developing the business plan for Struthers, Inc. We have diversified, in what I call multiple source income strategies (MSI). We have a number of alliances, and subsidiaries, that individually feed into each other to create a whole strong entity. By somewhat of"cross-pollination" we combine all of our products and services together to become a major force and contributor in the world of animal reproductive biotechnology.
The reason that I use the above analogies is because Struthers, Inc. has taken a much shorter timeline roughly two years, and built upon a foundation which in my opinion will carry this company very solid into the future. The foundations of Canterbury Cathedral and the actual building structure took hundreds of years to build, however, today it stands as a monument to those dedicated to a great cause. It stands, and has stood the test of time because of the craftspeople and
professionals that not only built a strong foundation, but the walls, the roof and the folks inside are dedicated to a belief that no one will be allowed to destroy. For almost 1000 years, people with the same convictions you have with your Company Struthers, have made the pilgrimage to this Cathedral, in fact it is a sobering thought to see the grooves in the marble at the tombs of the martyrs who are buried inside. The grooves in the marble were made by millions of pilgrims who knelt to pray for peace, health and the betterment of mankind. That day my wife and I were also pilgrims and on a personal note it
was a wonderful experience joining my wife and children in lighting candles and pray with the bishop for those who are not as fortunate as all of us and for the shareholders, staff and animals of our company.
I truly believe that what we're building is not just another company, a very unique Corporation. We're changing history and the industry as we know it today, it will no longer be the same. The unveiling of the Gourley Scope has just proved my point. We have built, Struthers, Inc. your Company on the premise that it has to be an industry leader; I personally will not accept less! I believe that we have learned from the past, we did not have access as a young growing Corporation to the expertise we now bring to the industry. We have all heard stories about Thomas Edison, and Andrew Carnegie, however, the one story of success is the adventure of this guy who at the age of 65, living on a Social Security check, driving around in old station wagon, dressed in a crumpled white suit knocking on over a thousand restaurant doors, trying to sell a fried chicken recipe. After being turned down over 1000 times and living off the chicken he fried at the restaurants, he finally came up with an idea that instead of selling recipe, he would license the recipe and receive a royalty for every piece of chicken that was fried and sold. On or about the 1012th sales call someone believed in him and the rest is history. This man was Col. Sanders.
There is now a Kentucky Fried Chicken outlet in every city in North America, which has a population of 100,000 or more. This concept has been duplicated worldwide. What these gentlemen achieved took years to build. What we have achieved has taken a lot less time, because we use history as a tool to exponentially grow this company. We have introduced new ideas, new award winning innovative biotechnology, professionals with the dedication and the interest in mind of the producer, to the Packer, and to the retail market and we will stand the test of time. It may also be an interest to know that Microsoft was a privately held corporation for 12 years prior to going public; Struthers, Inc. went public almost immediately. We have much to be proud of, an excellent selection of products and innovative reproductive techniques, the dedicated staff, and the dedication and conviction of a very unique shareholder base. I believe we have earned the right to be here and be public!
I've had the privilege in my lifetime to work with many individuals, from salespeople, Fortune 500 executives, military leaders, royalty, noted speakers, Nobel prize winners, TV personalities, Olympic athletes and sports stars, however, it truly is amazing that the individuals who we call shareholders, investors or team mates had given me more pleasure than anyone else I've ever had the opportunity to work with or for. It is my hope, that the patience you have had over the last two years will pay dividends in numerous ways, and in the value of what we bring as a whole group to this industry we call reproductive biotechnology.
Just recently, we delivered the first piglets ever conceived by non-surgical embryo transplantation, by using the patented Gourley Scope. This birth was the "shot" that was heard around the world and you the shareholders took the initiative to share this opportunity around the globe. Although, Struthers was sharing this information with the media and incorporations, which need this technology, you our teammates took the time to send this information to anyone who had a fax machine, e-mail or would listen. I know this, because of the calls I received from the media and from biotechnology companies
around the globe. Although, at this time I can't tell you as of yet what has transpired, I can tell you that you should be very proud of what you did, it was something that virtually is unheard of in the public arena. Your efforts are about to change the Company and the industry forever; for this I am truly grateful. I'm also grateful for the phone calls, faxes and e-mails of encouragement, believe it or not together we have already made the difference. And yes, we still have a few hoops to jump through i.e. full registration, but we will do it! That's a given, and I appreciate your patience. We have done everything possible to move in the correct direction. When I get the news, you will get the news. You also named the seven piglets I
initially called "The Magnificent Seven". We received over 850 names of which the following were drawn at the boar stud opening, MinneSTRUta, Zoloft (that's useful), Hammibol, Hamingway, RMG, Babe in the Woods and Ontario School. All of the offspring are doing well and will be registered under their new names. The rest of the names will be kept on file and drawn for the other non-surgical embryo transfers on pigs, sheep and deer that we are continuing to perform.
I have always said, "if you really want know with the future holds, then design it yourself", no one else will. The only caveat is that with all the great suggestions from the shareholders, you are actually helping to develop our future along with us and as you know I appreciate all of your suggestions, they are most welcomed.
I would also like to take the opportunity, to thank everyone, from our staff, shareholders, builders, and the media and especially our new family of piglets who were part of the grand opening of our boar stud facility. This event did not go unnoticed as we were visited not only by current clients, but individuals representing corporations from around the world. I also like to take this opportunity to personally thank Dr. Alan Carlson, Brent Legred and Randy Muller for the excellent job of designing one of the most impressive state-of-the-art boar stud facilities in North America. The timing of the opening of
the boar stud could not happened at a better time. Once the bio-security checks have been made of the unit, 200 boars will enter the facility within the next week to 10 days. Along with other superior boars we have located overseas that contain genetic traits that we feel are necessary to meet the future packer and consumer needs. The interesting aspect of bringing in these additional boars is that we do not need to buy them.we place them in our stud and a portion of the semen profit goes back to the company who sent them to us. Not only do we increase the number of animals in our stud boar operation (to utilize its full capacity), we continue to improve upon the elite genetics available for our clients who would otherwise not have access to the genetic package we have available. As the porcine breeding season is now getting underway I fully expect that the LSG subsidiary will be very busy filling the orders which have increased since the boar stud opening.
With respect to breeding, Dr. Gourley and his team have been extremely busy with semen/embryo collection, inseminations and non-surgical embryo transfers in swine, deer and sheep. Over the past few weeks Dr. Gourley has performed inseminations and non-surgical embryo transfers in hundreds of animals for our new clients.
With respect to the Spencer, Iowa research facility we now have data available on over 500 Gourley Scope inseminations and non-surgical embryo transfers. At present this data is being compiled both for publication and marketing materials. Dr. Gourley is also heavily involved with the USDA "Food for Peace" project that he leads in Mongolia. The notoriety that he brings to Struthers, Inc. in the Asian community has given us a major jump-start in the Pacific Rim countries.
With respect to the Pacific Rim, I am delighted to report that Struthers, Inc. will have a booth (A33) at the Agri-Link 2000 Expo, at the World Trade Center, Manila, Philippines, October 19th to 21st. In attendance at the Expo will be Dr. Dennis Gourley, and our International Genetic Consultant to the Philippines, Mr. Mark Anderson and Mr. Patrick Chua our Asia/Pacific Rim Marketing Consultant. The Gourley Scope will be demonstrated along with our line of artificial insemination supplies and our porcine and sheep genetics. This is the largest agriculture industry show its type in the Pacific Rim and we
believe our presence will jump start our business and office in this extremely important area of the world. After working in the
Philippines on behalf of Struthers, Inc., and working with the swine producers and agriculture department Mark helped develop a business plan which has demonstrated how we can increase the Philippines pork production by 30 to 40 percent without increasing existing herd sizes, reducing disease, improve local meat quality/nutrition, and also assist the countries food security program using our elite genetics and the Gourley Scope. A "cookie cuter" approach we are to employ
worldwide. What we have achieved nationally is ready internationally!
Since interest in our technology within Europe has grown tremendously since the release of the article on the Gourley Scope by Pig International Magazine, we are also in the process of considering displaying at the Hanover, Germany, BIV conference to be held November 28th to December 2nd. This is one of the largest animal reproductive conferences held yearly in Europe. Dr. Gourley and I are working on the data collected so far to be displayed in poster fashion and also
publication for major journals.
I'm also very proud of Ms. Tracy McGraw, General Manager of our Elite Visions team in Waukon, Iowa. Tracy and her team have worked very hard to develop our Tender Prime meat distribution center. Along with the 5000 square foot office and warehouse facility we now have a subzero freezer unit which is capable of holding and sorting 30,000 pounds of meat per week. Although, we are currently shipping product in large quantities, an e-commerce commercial Web site is in production to be able to handle orders via the Internet. We expect that this facility will be fully operational within a month and be able to handle and ship our naturally raised meat products in smaller quantities to meet the individual consumers needs. The products that will be available to our retail market will consist of; our Tender Prime line of USDA certified pork, lamb, venison, beef, and chicken. Peripheral items, which will be available, are at the moment an all-natural USDA certified barbecue sauce, dry spices and a USDA certified all organic breading mixtures. For those of you who have already ordered, you know
that we always add a little something extra. Our goal is to supply our consumers with the best wholesome products available on the market today.
Muller AI, Inc. Open House
We are all very excited about our grand opening of the Muller AI new warehouse and office facility Oct. 5th and 6th. The new facility located in Sioux Falls, South Dakota will support the sales and distribution of all of our artificial insemination products and reproductive training. For the opening we have invited our clients, news media and placed numerous ads in trade journals and local newspapers. As with the opening of the boar stud facility, you the shareholders have an open invitation to also attend this event and enjoy the festivities, which include a luncheon featuring Tender Prime.
Recent Media Articles
*www.waukonstandard.com - article on Elite Visions meat distribution facility
*Pig International - article on Gourley Scope, distributed worldwide
*www.meatingplace.com - article in Meat Marketing Industry, magazine, distributed worldwide
*ABC NEWS - taped segment for local stations and then sent to affiliates
*Local Charleston Post & Courier
*Charleston Symphony Orchestra (CSO)- sponsored opening night, media, paper, ads and opening night recognition, full page ad in the CSO guide throughout 2000-2001
*Bricelyn and local papers
*National Hog farmer - magazine ads for Muller AI
*AgDay TV and radio
*KNAC - radio, 30 and 60-second commercials for the Boar Stud - did full remote reporting from Boar Stud opening all day
*Video interview with Dr. Carlson explaining the role disease has in pork production and why our LSG herds are the hogs of choice for the producer and Packers.
*Contracted videographers - Full video of Struthers and Boar Stud opening for use as a corporate video
*Company updates in the NPPC and Porknet web sites
*Letter from the United States Senate, Sen. Paul D. Wellstone (MN), congratulating Struthers, Inc. for the opening of the boar stud facility. Sen. Wellstone, although, impressed with the fact that we opened our new state-of-the-art boar stud facility, sent his regrets for not being able to attend due to his presence required in Washington at this time.
We have also have had articles written in Germany with respect to our company which I will add along with the newspaper articles and videos to our new Web site.
The recent worldwide media attention has generated a steady stream of requests for our products and services, which has kept us very busy. It is my opinion that we're going to have an excellent fall breeding season.
SEC Update
Although, we are in constant contact with the SEC and expect to hear from them soon, I have no pertinent information that I can share with you at the present time other than we are making excellent progress. However, when news is available, it will be shared with everyone in the investment community at once by newswire. Just a helpful reminder .it does not help us if folks keep calling the SEC to keep checking on our status.
Annual Meeting of Shareholders
To date we have had an excellent response from shareholders to attend our first Annual Meeting. In attendance to make presentations from all of our subsidiaries, will be Dr. Dennis Gourley, Dr. Alan Carlson, Brent Legred, Randy Muller, Tracy McGraw, Frances Kotnik, Rhett Seabrook and myself. Also in attendance will be other members of our staff and the industry to address questions, which are pertinent to our business.
As mentioned previously, we have planned an excellent meeting, and in my opinion if there is any question in your mind on whether you should attend this meeting, I can only say, that I would highly recommend it.
The general meeting will be held between 9 AM and noon, after which the afternoon is free time until the evening festivities, which start at 5 PM to 7 PM for hospitality, dinner and speeches to follow. I would greatly appreciate if you would e-mail Frances Kotnik (investor relations) at fkotnik@struthersinc.com and indicate how many in your party will be attending the dinner so that we may set the room accordingly.
The special room rate that we have for shareholders at the Embassy Suites Hotel expires Oct. 6. If you are planning to stay in this hotel, please reserve your room before the expiration date. Please review our website for further details on the hotel and meeting. Hotel shuttles are available from the Charleston International Airport. As some shareholders are arriving prior to the meeting a dinner/dancing boat cruise has been arranged for Friday night Oct. 27th. Although, this is not a Struthers, Inc. event, my family, and I and other "Struthers Family Companies" staff members will be in attendance to spend time with anyone who would like to share this fun evening with us. The three-hour cruise of the Charleston harbor at night aboard the
SpiritLine ship is spectacular. If anyone is interested in attending this cruise, it boards at 6:30 PM and returns to Patriots Point at 10 PM. The cost of the dinner cruise is approximately $40 and tickets may be obtained by calling 843-722-2628. When booking tickets please mention that you're with the Struthers group and their staff will seat you in our area. They also have a Web site at www.spiritlinecruises.com.
Thank you very much in advance for taking the time to read such an extensive note, however, I hope that you found its contents informative. I look forward to meeting everyone very soon.
As always, warmest regards,
Douglas W. Beatty, Ph.D.
President/CEO
Struthers, Inc.
For further information on Struthers, Inc., visit their web site at www.struthersinc.com.
This is not a solicitation to buy securities and does not purport to be a complete analysis of Struthers, Inc. Investing in securities is highly speculative and carries a degree of risk. Past performance does not guarantee future results.
Contact: Struthers, Inc. Charleston, SC
Ms. Frances Kotnik, Public Relations, 843/763-1755
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October 03, 2000 17:38:45 EST
Cheers
Voluntary Disclosure: Strong Buy : Long and Short Term
From: directors@struthersinc.com (Struthers, Inc.) 9:38 PM
Subject: From the Desk of Douglas W. Beatty, Ph.D., President/CEO, Struthers, Inc.
To: NetShoe22@hotmail.com
October 3rd, 2000
Dear Shareholders,
While we wait for the written response from the SEC, I thought it would be of interest to share some thoughts with you on the industry and what I am able to discuss with you with respect to our achievements over the last few weeks.
Two points I would like to cover real quick before you read such a lengthy letter are the following: If you are having any difficulty whatsoever in deciding whether to attend the shareholders meeting on October 28th, it is my opinion that you may want to consider coming.I'll state this again.in my opinion you will not want to miss this meeting.we have planed a great meeting and realize that this is the first for Struthers, inc., one that you can tell your grand children about.because you were here.now if you can't make it, the whole event will be filmed including the interviews with our staff, folks from the industry and some of our clients who will also be attending and introducing themselves to the shareholders. By the way Charleston is
beautiful this time of year! Secondly, I have written this letter to provide insight and information for potential investors, new investors and our great shareholder base and should be used as a source of information on the industry and some of the areas we are focusing on.
State of the Industry, and why I believe your Company is position to make a difference?
The porcine industry is a $184 billion per year industry! The additional animal reproductive biotechnology area that we are making a major contribution to actually dwarfs this number. For now, allow me to comment on the pork industry and further in my discussions I will comment on our role in other animal husbandry production and why we have chosen to pursue and advance our technology to reach those industries that we are now in a position to capture.
Your Company is privileged to be a member of the National Pork Producers Council. This keeps us well informed to the market potential in the hog producing industry. We are also members of the International Embryo Transfer Society [IETS] and this membership allows us the opportunity of being informed of new developments in bioresearch and embryo transfers. By being members in good standing this allows your Company the opportunity to present research papers and always be on the cutting edge of industry technology. Data currently being compiled on hundreds of inseminations and embryo transfers will be submitted for publication.
A recent report received in our office from the National Pork Producers Council informs us that the U.S. pork industry has
experienced unprecedented growth in the decade of the '90s. More pork will be produced [nearly 19 billion pounds] and more hogs slaughtered [likely more than 99 million-head] in the USA in the last reported year [1998]; more than ever before. That growth resulted in record slaughter of over 101 million-head and record pork production of roughly 19 billion pounds in 1998.
The economic impact of the pork industry on rural America is immense. Farm receipts from hogs placed the industry in the 4th and 5th position [financially] among all farm commodities. Annual farm sales usually exceed $10 billion while the retail value of pork sold to consumers exceeds $30 billion. In fact, farm income from the sale of hogs set a new record of $13.2 billion in 1997.
The pork industry benefits more than just farmers! Pork production means jobs and economic opportunity for thousands of rural communities. The "value-added" nature of pork provides employment well beyond the farm. Based on a 1995 study by researchers at Iowa State University, the U.S. pork industry is responsible for over $64 billion in total domestic economic activity. Through direct, indirect and induced effects, the pork industry supports over 600,000 jobs and adds over $27 billion of value production inputs. The pork industry is a major contributor to local, state and national economies and governments.
Today there are approximately 114,000 pork operations compared to nearly 3 million in the 1950s. Hog farms are grown in size, too, while reducing in numbers. Over 80 percent of the hogs are grown on farms producing 1000 or more hogs per year while over half are growing on farms producing 2000 or more hogs per year. These operations, which are often very technically sophisticated, are still predominantly individual family farms. These farms are our clients.
The geographic location of pork production is shifting as well. While the traditional Corn Belt represents the overwhelming share of production, growth is also occurring in "non-traditional" hog states such as Texas, Colorado, Oklahoma and North Carolina [which ranked 14 in pork production 30 years ago and now ranks 2nd in total hog numbers]. Similarly, the global market offers tremendous growth potential for U.S. pork producers. Pork is the world's "meat of choice" by far, with approximately 43% share of the world's meat protein market. The U.S. pork industry is steadily increasing its share of this vast world market exporting over 6.5% of its production in 1998 after becoming a net exporter in 1995 for the first time since
1952. In 1999 the U.S. pork export market ranked second after Canada, boasting many of the world's most cost-efficient producers. The USA is on the verge to capture even more of the global pork business as trade barriers fall under terms of the NAFTA and GATT. And Struthers, your Company, in my opinion will be there to make this happen!
A short excerpt on my trip to the UK, which I believe should help as an analogy to explain why it is important that we have created a solid foundation for this company.
In 1290 King Edward the first, determined to claim land for the Crown, expelled numerous religious groups and peasants from their homes and seized all of their property. The property was turned over to the monks. The monks leased the properties at a rent of 11 cents per annum. The County Hotel, Canterbury, building under its various titles has always served as one of the principal hubs of the local community. It does indeed stand in the center of the city, since the center point of the half-mile circle form the city walls (60 AD) of Canterbury Falls in Whitehorse Lane, 30 or 40 yards away.
Many of the manuscripts relating to the hotel and barely date are preserved in the cathedral library, Canterbury, while further
information may be drawn from other cathedral documents in the British Museum, which I had the pleasure of viewing.
What is so profound is that if anyone had sat looking out of the front window of the County Hotel through the ages, they would have witnessed a large segment of English history. This hotel is located on the old Roman London-Dover Road, since ancient times an important artery in European communications. Before the coming of Railway's most of the traffic with the continent move backwards and forwards along it. The watcher in the window will see William the Norman, fresh from his
victory at Hastings, leading his army up to capture London. He would see the Archbishop Thomas Beckett entering his Cathedral City for the last time in December, 1170 only to be murdered moments later by King Henry's II guards and little later watch Henry the second, ruler of half Europe, hauling barefoot penance up the High Street to the tomb of his old enemy in the cathedral. The watcher will see Richard I back from the crusades after landing at Sandwich in March 1194, and Henry the third coming to his wedding with Eleanor of Provence. The family of Richard the second pushes its way through the mob, which has seized Canterbury and the peasants' revolt in 1381. Nearly every English monarch passes by. Henry the forth, Henry the fifth, and the sixth ride past on pilgrimage; Edward the fourth comes to execute the Mayor of Canterbury for high treason. Henry the eighth, Elisabeth the first and Charles the first, all come in turn. Charles II, after years of exile, passes through after landing at Dover in 1660, on his way to London, to claim his father's throne.
The rest is really history, you know the part about in 1492 Columbus sailed the ocean blue, in the Pinto, Cordoba, and the Sedan De Ville [for some reason the Pinto blew up] and founded the New World. Well we also know that Columbus was out looking for spice, when the wrong way, which actually turned to be the better way because he found a great profit center. Columbus was also told that the world was flat, I believe he proved that theory wrong. It is also interesting to note, that Columbus used three ships. Why not one big boat? My theory is that he wanted to diversify and not put all of his "eggs" in one basket...good move. We have also used this strategy in developing the business plan for Struthers, Inc. We have diversified, in what I call multiple source income strategies (MSI). We have a number of alliances, and subsidiaries, that individually feed into each other to create a whole strong entity. By somewhat of"cross-pollination" we combine all of our products and services together to become a major force and contributor in the world of animal reproductive biotechnology.
The reason that I use the above analogies is because Struthers, Inc. has taken a much shorter timeline roughly two years, and built upon a foundation which in my opinion will carry this company very solid into the future. The foundations of Canterbury Cathedral and the actual building structure took hundreds of years to build, however, today it stands as a monument to those dedicated to a great cause. It stands, and has stood the test of time because of the craftspeople and
professionals that not only built a strong foundation, but the walls, the roof and the folks inside are dedicated to a belief that no one will be allowed to destroy. For almost 1000 years, people with the same convictions you have with your Company Struthers, have made the pilgrimage to this Cathedral, in fact it is a sobering thought to see the grooves in the marble at the tombs of the martyrs who are buried inside. The grooves in the marble were made by millions of pilgrims who knelt to pray for peace, health and the betterment of mankind. That day my wife and I were also pilgrims and on a personal note it
was a wonderful experience joining my wife and children in lighting candles and pray with the bishop for those who are not as fortunate as all of us and for the shareholders, staff and animals of our company.
I truly believe that what we're building is not just another company, a very unique Corporation. We're changing history and the industry as we know it today, it will no longer be the same. The unveiling of the Gourley Scope has just proved my point. We have built, Struthers, Inc. your Company on the premise that it has to be an industry leader; I personally will not accept less! I believe that we have learned from the past, we did not have access as a young growing Corporation to the expertise we now bring to the industry. We have all heard stories about Thomas Edison, and Andrew Carnegie, however, the one story of success is the adventure of this guy who at the age of 65, living on a Social Security check, driving around in old station wagon, dressed in a crumpled white suit knocking on over a thousand restaurant doors, trying to sell a fried chicken recipe. After being turned down over 1000 times and living off the chicken he fried at the restaurants, he finally came up with an idea that instead of selling recipe, he would license the recipe and receive a royalty for every piece of chicken that was fried and sold. On or about the 1012th sales call someone believed in him and the rest is history. This man was Col. Sanders.
There is now a Kentucky Fried Chicken outlet in every city in North America, which has a population of 100,000 or more. This concept has been duplicated worldwide. What these gentlemen achieved took years to build. What we have achieved has taken a lot less time, because we use history as a tool to exponentially grow this company. We have introduced new ideas, new award winning innovative biotechnology, professionals with the dedication and the interest in mind of the producer, to the Packer, and to the retail market and we will stand the test of time. It may also be an interest to know that Microsoft was a privately held corporation for 12 years prior to going public; Struthers, Inc. went public almost immediately. We have much to be proud of, an excellent selection of products and innovative reproductive techniques, the dedicated staff, and the dedication and conviction of a very unique shareholder base. I believe we have earned the right to be here and be public!
I've had the privilege in my lifetime to work with many individuals, from salespeople, Fortune 500 executives, military leaders, royalty, noted speakers, Nobel prize winners, TV personalities, Olympic athletes and sports stars, however, it truly is amazing that the individuals who we call shareholders, investors or team mates had given me more pleasure than anyone else I've ever had the opportunity to work with or for. It is my hope, that the patience you have had over the last two years will pay dividends in numerous ways, and in the value of what we bring as a whole group to this industry we call reproductive biotechnology.
Just recently, we delivered the first piglets ever conceived by non-surgical embryo transplantation, by using the patented Gourley Scope. This birth was the "shot" that was heard around the world and you the shareholders took the initiative to share this opportunity around the globe. Although, Struthers was sharing this information with the media and incorporations, which need this technology, you our teammates took the time to send this information to anyone who had a fax machine, e-mail or would listen. I know this, because of the calls I received from the media and from biotechnology companies
around the globe. Although, at this time I can't tell you as of yet what has transpired, I can tell you that you should be very proud of what you did, it was something that virtually is unheard of in the public arena. Your efforts are about to change the Company and the industry forever; for this I am truly grateful. I'm also grateful for the phone calls, faxes and e-mails of encouragement, believe it or not together we have already made the difference. And yes, we still have a few hoops to jump through i.e. full registration, but we will do it! That's a given, and I appreciate your patience. We have done everything possible to move in the correct direction. When I get the news, you will get the news. You also named the seven piglets I
initially called "The Magnificent Seven". We received over 850 names of which the following were drawn at the boar stud opening, MinneSTRUta, Zoloft (that's useful), Hammibol, Hamingway, RMG, Babe in the Woods and Ontario School. All of the offspring are doing well and will be registered under their new names. The rest of the names will be kept on file and drawn for the other non-surgical embryo transfers on pigs, sheep and deer that we are continuing to perform.
I have always said, "if you really want know with the future holds, then design it yourself", no one else will. The only caveat is that with all the great suggestions from the shareholders, you are actually helping to develop our future along with us and as you know I appreciate all of your suggestions, they are most welcomed.
I would also like to take the opportunity, to thank everyone, from our staff, shareholders, builders, and the media and especially our new family of piglets who were part of the grand opening of our boar stud facility. This event did not go unnoticed as we were visited not only by current clients, but individuals representing corporations from around the world. I also like to take this opportunity to personally thank Dr. Alan Carlson, Brent Legred and Randy Muller for the excellent job of designing one of the most impressive state-of-the-art boar stud facilities in North America. The timing of the opening of
the boar stud could not happened at a better time. Once the bio-security checks have been made of the unit, 200 boars will enter the facility within the next week to 10 days. Along with other superior boars we have located overseas that contain genetic traits that we feel are necessary to meet the future packer and consumer needs. The interesting aspect of bringing in these additional boars is that we do not need to buy them.we place them in our stud and a portion of the semen profit goes back to the company who sent them to us. Not only do we increase the number of animals in our stud boar operation (to utilize its full capacity), we continue to improve upon the elite genetics available for our clients who would otherwise not have access to the genetic package we have available. As the porcine breeding season is now getting underway I fully expect that the LSG subsidiary will be very busy filling the orders which have increased since the boar stud opening.
With respect to breeding, Dr. Gourley and his team have been extremely busy with semen/embryo collection, inseminations and non-surgical embryo transfers in swine, deer and sheep. Over the past few weeks Dr. Gourley has performed inseminations and non-surgical embryo transfers in hundreds of animals for our new clients.
With respect to the Spencer, Iowa research facility we now have data available on over 500 Gourley Scope inseminations and non-surgical embryo transfers. At present this data is being compiled both for publication and marketing materials. Dr. Gourley is also heavily involved with the USDA "Food for Peace" project that he leads in Mongolia. The notoriety that he brings to Struthers, Inc. in the Asian community has given us a major jump-start in the Pacific Rim countries.
With respect to the Pacific Rim, I am delighted to report that Struthers, Inc. will have a booth (A33) at the Agri-Link 2000 Expo, at the World Trade Center, Manila, Philippines, October 19th to 21st. In attendance at the Expo will be Dr. Dennis Gourley, and our International Genetic Consultant to the Philippines, Mr. Mark Anderson and Mr. Patrick Chua our Asia/Pacific Rim Marketing Consultant. The Gourley Scope will be demonstrated along with our line of artificial insemination supplies and our porcine and sheep genetics. This is the largest agriculture industry show its type in the Pacific Rim and we
believe our presence will jump start our business and office in this extremely important area of the world. After working in the
Philippines on behalf of Struthers, Inc., and working with the swine producers and agriculture department Mark helped develop a business plan which has demonstrated how we can increase the Philippines pork production by 30 to 40 percent without increasing existing herd sizes, reducing disease, improve local meat quality/nutrition, and also assist the countries food security program using our elite genetics and the Gourley Scope. A "cookie cuter" approach we are to employ
worldwide. What we have achieved nationally is ready internationally!
Since interest in our technology within Europe has grown tremendously since the release of the article on the Gourley Scope by Pig International Magazine, we are also in the process of considering displaying at the Hanover, Germany, BIV conference to be held November 28th to December 2nd. This is one of the largest animal reproductive conferences held yearly in Europe. Dr. Gourley and I are working on the data collected so far to be displayed in poster fashion and also
publication for major journals.
I'm also very proud of Ms. Tracy McGraw, General Manager of our Elite Visions team in Waukon, Iowa. Tracy and her team have worked very hard to develop our Tender Prime meat distribution center. Along with the 5000 square foot office and warehouse facility we now have a subzero freezer unit which is capable of holding and sorting 30,000 pounds of meat per week. Although, we are currently shipping product in large quantities, an e-commerce commercial Web site is in production to be able to handle orders via the Internet. We expect that this facility will be fully operational within a month and be able to handle and ship our naturally raised meat products in smaller quantities to meet the individual consumers needs. The products that will be available to our retail market will consist of; our Tender Prime line of USDA certified pork, lamb, venison, beef, and chicken. Peripheral items, which will be available, are at the moment an all-natural USDA certified barbecue sauce, dry spices and a USDA certified all organic breading mixtures. For those of you who have already ordered, you know
that we always add a little something extra. Our goal is to supply our consumers with the best wholesome products available on the market today.
Muller AI, Inc. Open House
We are all very excited about our grand opening of the Muller AI new warehouse and office facility Oct. 5th and 6th. The new facility located in Sioux Falls, South Dakota will support the sales and distribution of all of our artificial insemination products and reproductive training. For the opening we have invited our clients, news media and placed numerous ads in trade journals and local newspapers. As with the opening of the boar stud facility, you the shareholders have an open invitation to also attend this event and enjoy the festivities, which include a luncheon featuring Tender Prime.
Recent Media Articles
*www.waukonstandard.com - article on Elite Visions meat distribution facility
*Pig International - article on Gourley Scope, distributed worldwide
*www.meatingplace.com - article in Meat Marketing Industry, magazine, distributed worldwide
*ABC NEWS - taped segment for local stations and then sent to affiliates
*Local Charleston Post & Courier
*Charleston Symphony Orchestra (CSO)- sponsored opening night, media, paper, ads and opening night recognition, full page ad in the CSO guide throughout 2000-2001
*Bricelyn and local papers
*National Hog farmer - magazine ads for Muller AI
*AgDay TV and radio
*KNAC - radio, 30 and 60-second commercials for the Boar Stud - did full remote reporting from Boar Stud opening all day
*Video interview with Dr. Carlson explaining the role disease has in pork production and why our LSG herds are the hogs of choice for the producer and Packers.
*Contracted videographers - Full video of Struthers and Boar Stud opening for use as a corporate video
*Company updates in the NPPC and Porknet web sites
*Letter from the United States Senate, Sen. Paul D. Wellstone (MN), congratulating Struthers, Inc. for the opening of the boar stud facility. Sen. Wellstone, although, impressed with the fact that we opened our new state-of-the-art boar stud facility, sent his regrets for not being able to attend due to his presence required in Washington at this time.
We have also have had articles written in Germany with respect to our company which I will add along with the newspaper articles and videos to our new Web site.
The recent worldwide media attention has generated a steady stream of requests for our products and services, which has kept us very busy. It is my opinion that we're going to have an excellent fall breeding season.
SEC Update
Although, we are in constant contact with the SEC and expect to hear from them soon, I have no pertinent information that I can share with you at the present time other than we are making excellent progress. However, when news is available, it will be shared with everyone in the investment community at once by newswire. Just a helpful reminder .it does not help us if folks keep calling the SEC to keep checking on our status.
Annual Meeting of Shareholders
To date we have had an excellent response from shareholders to attend our first Annual Meeting. In attendance to make presentations from all of our subsidiaries, will be Dr. Dennis Gourley, Dr. Alan Carlson, Brent Legred, Randy Muller, Tracy McGraw, Frances Kotnik, Rhett Seabrook and myself. Also in attendance will be other members of our staff and the industry to address questions, which are pertinent to our business.
As mentioned previously, we have planned an excellent meeting, and in my opinion if there is any question in your mind on whether you should attend this meeting, I can only say, that I would highly recommend it.
The general meeting will be held between 9 AM and noon, after which the afternoon is free time until the evening festivities, which start at 5 PM to 7 PM for hospitality, dinner and speeches to follow. I would greatly appreciate if you would e-mail Frances Kotnik (investor relations) at fkotnik@struthersinc.com and indicate how many in your party will be attending the dinner so that we may set the room accordingly.
The special room rate that we have for shareholders at the Embassy Suites Hotel expires Oct. 6. If you are planning to stay in this hotel, please reserve your room before the expiration date. Please review our website for further details on the hotel and meeting. Hotel shuttles are available from the Charleston International Airport. As some shareholders are arriving prior to the meeting a dinner/dancing boat cruise has been arranged for Friday night Oct. 27th. Although, this is not a Struthers, Inc. event, my family, and I and other "Struthers Family Companies" staff members will be in attendance to spend time with anyone who would like to share this fun evening with us. The three-hour cruise of the Charleston harbor at night aboard the
SpiritLine ship is spectacular. If anyone is interested in attending this cruise, it boards at 6:30 PM and returns to Patriots Point at 10 PM. The cost of the dinner cruise is approximately $40 and tickets may be obtained by calling 843-722-2628. When booking tickets please mention that you're with the Struthers group and their staff will seat you in our area. They also have a Web site at www.spiritlinecruises.com.
Thank you very much in advance for taking the time to read such an extensive note, however, I hope that you found its contents informative. I look forward to meeting everyone very soon.
As always, warmest regards,
Douglas W. Beatty, Ph.D.
President/CEO
Struthers, Inc.
For further information on Struthers, Inc., visit their web site at www.struthersinc.com.
This is not a solicitation to buy securities and does not purport to be a complete analysis of Struthers, Inc. Investing in securities is highly speculative and carries a degree of risk. Past performance does not guarantee future results.
Contact: Struthers, Inc. Charleston, SC
Ms. Frances Kotnik, Public Relations, 843/763-1755
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October 03, 2000 17:38:45 EST
Cheers
Voluntary Disclosure: Strong Buy : Long and Short Term
Cheers
Voluntary Disclosure: Strong Buy : Long and Short Term
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