NewMarket Technology, Inc. Releases Plan to Incubate Emerging Technologies by Growing $70 Million Operation into Conglomerate of Micro Cap Public Listings
Tuesday November 7, 11:22 am ET
Conglomerate Provides for Reduced Total Expenses, Optimized Market Conditions, Improved Transparency for Shareholders and Enhanced Shareholder Return through Dividends
DALLAS--(BUSINESS WIRE)--NewMarket Technology, Inc. (OTCBB:NMKT - News) releases plan to incubate emerging technologies by expanding its current business now producing $70 million in annualized revenue into a conglomerate of micro cap public listings. The business plan was outlined by Philip Verges, CEO and Chairman of NewMarket Technology, in an interview by Senior Analyst Todd Santorelli of the Wall Street Reporter. To access the free audio interview register online at www.wallstreetreporter.com, then log in and click on NewMarket Technology on the right side of the screen.
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NewMarket Technology recently announced the independent public listing of their consolidated subsidiary, NewMarket China, which is forecasted to recognize approximately $20 million in revenue for fiscal year 2006. NewMarket's operation in China continues to be a consolidated subsidiary of NewMarket Technology, but now with an independent public listing (OTCBB:IICP - News). The subsidiary name will be changed to NewMarket China and the ticker symbol will be changed in the coming weeks.
This initial independent public listing of a consolidated subsidiary is an integral part of NewMarket's business plan to continuously publicly list subsidiary operations and build a conglomerate of micro cap public listings.
"After the end of the technology investment bubble, the incubator business model fell out of favor on Wall Street," said Philip Verges, CEO of NewMarket Technology. "The availability of venture capital for start-ups has also dramatically fallen off since the end of the investment bubble. We recognized a need to build a new approach to accessing capital for emerging technology opportunities. We have been constructing a new business model since 2002 to continuously introduce new technologies to new markets. The micro cap public markets are a good source of investment, but come with expenses outside the mere building of a business, in addition to requiring skills not usually in the expertise portfolio of your typical entrepreneur. NewMarket is building a portfolio of emerging technology companies with the intention of listing each company as it gains early operational traction. The conglomerate of publicly listed micro cap companies will be able to better navigate the markets and optimize shareholder return than each company on its own."
Highlights of a Conglomeration of Micro Cap Publicly-Listed Companies
Reduced Expenses
The expense of maintaining a public listing has increased substantially with the Sarbanes-Oxley laws increasing, which has resulted in micro cap companies seeing a higher percentage of their bottom line being reduced due to the increased expenses. That expense is reduced per company by combining multiple companies into a single conglomerate that can share in the redundant expenses by taking advantage of the economies of scale the combination produces.
Optimized Market Conditions
Managing the public markets is not usually the expertise of an entrepreneurial technology management team. Their focus is, and should continue to be, the management and growth of their company in their field of expertise. The conglomerate can provide the necessary expertise for a publicly listed company on an as needed basis, at reduced costs.
Improved Transparency for Shareholders
NewMarket is working to upgrade its listing to NASDAQ or another more regulated exchange. By having "smaller board" listed companies as consolidated subsidiaries of a "big board" listed company, the subsidiary companies are essentially required to meet the reporting standards of the more regulated "big board" exchange.
Enhanced Shareholder Return through Dividends
An important part of NewMarket's business plan for continued growth, in both revenue and shareholder value, is the periodic distribution of dividends in the form of stock of the subsidiary companies to NewMarket shareholders. Dependent upon the structure of each subsidiary spin-off, shareholders of NewMarket can look forward to stock dividends in each publicly listed subsidiary.
NewMarket Technology, Inc. Town Hall in New Orleans
Shareholders and interested investors are encouraged to attend the NewMarket Annual Town Hall to learn more about the Company's business plan, review 2006 performance and plans to continue rapid growth into next year with a forecasted $120 million in profitable annual revenue for 2007.
The NewMarket Technology Annual Town Hall will be held in New Orleans on December 7, 2006, at 3:30 p.m. CST. The Town Hall meeting will be held at the centrally located Royal Sonesta Hotel (www.royalsonestano.com). American Airlines (NYSE:AMR - News) has offered discounted airfare on all flights to New Orleans from across the country between Dec. 5 - Dec. 10, 2006. To receive the discounted rate, attendees should go to www.aa.com or call American Airlines Group Services at 1-800-433-1790. When making your reservation, please use discount code "A64D6AO."
In addition to discounted rates with American Airlines, Avis Rental Car (NYSE:CAR - News) and the Royal Sonesta Hotel have also offered discounted rates. To book a car with Avis, please go to www.avis.com or call 1-800-331-1600. When making your reservation, please use Avis Worldwide Discount (AWD) number "J995226." To reserve a room at the Royal Sonesta Hotel, please mention "NewMarket" to receive the discounted rate of $149 per night. Reservations at the Royal Sonesta must be made by Nov. 6, 2006, to receive this special group rate.
If you have any further questions, or would like to RSVP to the NewMarket Technology Annual Town Hall please contact Whitney Marks at 214.722.3052 or wmarks@newmarkettechnology.com.
To be added to NewMarket's corporate e-mail list for shareholders and interested investors, please send an e-mail to ir@newmarkettechnology.com.
About NewMarket Technology Inc. (www.newmarkettechnology.com)
NewMarket has combined a traditional systems integration and support services capacity with a specialized asset-based approach to assisting its clients with the delicate balance between maintaining legacy systems and gaining a competitive edge from the latest technology innovations. NewMarket provides certified integration and maintenance services to support the prevailing industry standard solutions to include Microsoft (Nasdaq:MSFT - News), Cisco Systems (Nasdaq:CSCO - News) and Sun Microsystems (Nasdaq:SUNW - News). Concurrently, NewMa
