Exten Industries (fka BB: EXTI)

[Patricia_1]

Jerry Newmin/phone call with poster 3/18/04

Jerry Newmin is Chairman and CEO of EXTI

Thanks to fadein at EXTI thread on RB for taking the time

I did not post this post when I read it as I wanted to see how it played out. Since the date of this post, 3/18/04, a pr was released on 3/24/04 so I became comfortable with posting it here for future reference and credibility concerns which have been satisfied now.

By: fadein
18 Mar 2004, 12:48 PM EST
Msg. 25185 of 25865
(This msg. is a reply to 25173 by jazzbeerman.)
Jump to msg. #
Jazz, Thalio, Alan, dorie, jaws, dcjan, and et.al.,
I just got off the phone with Jerry Newmin. He was very generous with information, and I could only describe the exchange as forthright and very reassuring. At one point he told me, "the (sec) regs make it very tough on what we can say, and I've already told you things I probably shouldn't have..." That said, he didn't ask me NOT to repeat information that he offered, so I will try to give you all an executive summary without leaving anything out.
- Jazz, you are spot on in your speculation. Folks, remember a couple of weeks ago when I started yelling about mm manipulation when we broke through .60. Jerry noted that at that time "the ppps had stabilized very nicely in the .60s." What we didn't know was that over the past few months, management had struck a deal with a company in Atlanta to raise cash to get on the NAZ, and to start promoting proteins and sybiol. Yes, they have money in the bank, but they wanted to leap forward, get off the BB., and secure working capital to promote these other ventures while they're waiting for the contracts to come in from big pharma.
So far so good.
They had negotiated a deal with a group in Atlanta, cash for stock , with a discounted stock price. The strike price was based on a pps in the .60s, and discounted for the deal into the .40s. In other words, the lenders had their profit built in.
THEN, guess what happened?
The timing couldn't have been worse for those of us on this board. The SEC announced its new regs re: off-shore shorting. The company that they struck the deal with saw its profits vanish. They immediately went off shore and sold short to lock in their take, and that was the day the stock broke down through .60 and headed south.
The bottom line here, then, is it was indeed the mm manipulation all along. There was nothing driving the stock down but what Newmin termed "very regretable turn of events with a bad bunch of guys...we lost a lot of sleep over that one. It was very unfortunate."
So, that's that, and it is the cause and effect we were looking for behind this absurd slide. Nothing has changed. In fact, if anything, according to Jerry, the "company has never been in a more exciting place...we know that very big news could come at any time, any day. We just don't know which day that will be, but we know it will be sooner than later."
- One thing they are going to announce over the next week is the merger of the subsidiary and the parent company into one unit...
_ Another: "We have new members joining our board, scientists who are tops in their field, and we are very excited about that."
- "We have a number of very exciting products on the shelf that we are going to begin promoting with any money we raise...the sybiol, proteins, etc..."
- Summary: As far as the business and the science are concerned, they could not be happier or more optimistic. Jerry is committed to securing funding to get EXTI off the BB...asap! It is a top priority.
- I brought up the subject of public relations and press releases. We had a very frank exchange on this subject, and I pressed the point, arguing that there is an important middle ground between fluff pr's that are meaningless, and having to endure long periods of silence between earth shattering news. I urged him to take a long second look at the role of public relations in image building that would benefit both the company and the investment of their shareholders. He was very open on this point, and actually allowed as how: "This is an area we really need to address, to get better at...frankly, we haven't done a very good job (of building the company image) or keeping people informed. Hopefully, the new web site will help some..."but we need to do a better job of that, no question!"
- He said he and Szabo are simply amazed at the quality of their core group of shareholders, the level of loyalty and knowlege. He said that sometimes he'll read things on the board and have to go find out what they mean. He was laughing, and expressed a great deal of appreciation for who we are, for the long-term stalwarts here, and the quality of this community. He knows how important we are to the company, and how we have been tested by these unexplained events.
- Bottom line: we are very close to big things. Newmin: "The minute one of these contracts comes in, we know the price of our stock will be at $2, or $5, overnight...we simply can't say with any degree of certainty when that will be. Our cells represent a big change for big pharma, and it won't happen without a great deal of thought on their part, so we have to wait it out and be patient."
In the meantime, they have a lot of deals in the works to secure the funding to get on the naz, to stabalize their cash flow position, and to get the company in the right position to be able to exploit all their future opportunities.

And there you have it.


ppp

http://ragingbull.lycos.com/mboard/boards.cgi?board=EXTI&read=25185