Understanding NPDI
Anyone who visits the Neptune Industries and Aqua biologics website, or has read anyone of the many articles about the company, or watched them on TV’s Discovery Channel, cannot deny the advancements in technology that this company has brought forth. That being a given, then the next thing one would look at before they invested in a company is their financial position. Neptune Industries not unlike many other micro Cap company’s paints a weak financial picture. It is obvious that the company is in need of capital. That is why it is diligently trying to do a capital raise. Whether or not it will be successful in this tight credit market remains to be seen. Will the company go under? I do not think so, for a few reasons. They have not shown any profitability for years and they are still in business. They still produce income, although not sufficient enough to show profit bottom line, yet they keep going forward and make technological advancements. In addition, there is an unforeseen positive with this company. It is in its actual note holders. This is where, in my opinion, the company will end up getting the capital it needs to become successful. When considering a prudent business decision, it is my feelings that one or several of the note holders will, on an individual or combined basis, make a bid to take over controlling interest when their notes mature or possibly sooner. The group it is believed is made up of very wealthy businessmen who are very capable of financing the company and taking it forward and to a whole new level. A few questions to ponder is, will astute businessmen with a company having huge upside potential, with all of the mechanics in place, just write-off a substantial amount of money while having a primed vehicle in their clutches. ? Not likely. Will they let millions of shares they own of the company become worthless when there is so much potential for huge profits? Not likely. Will the company’s management just throw all of their hard work and investment out the window and not be willing to take a smaller percentage of a bigger pie? Not likely. In my final analysis, I feel the success of the company has far a greater chance, then its demise and the money it needs is already lying within its grasp. It is only my feeling that the reason management has not gone to this readily available source of funds is that they did not want to give up controlling interest, which the note holders would probably require, and is understandable from both points of view. The financial present financial position of the company, unless funded from another outside source, will at some point have management acquiesce. My bet, in the long run, is that the note holders, who put their money into a fledgling company before it had its perfected technology, will step to the plate one more time, especially when the company’s future is so much brighter with U.S. patents and the where-with-all to expand their production already in place. These same note holders, it would seem, realize that:
The already constructed 30,000 square foot Hydroponics crop farm is expected to generate approximately $2,400,000 in crops annually with expansion capacity to $7,200,000. Within one year It’s fish production with an additional 36 aqua cells, already on the farm, will add an additional 3,000,000 pounds plus or approximately $10,500,000 every nine months, The Aqua-Sphere has been perfected to the point, that sales are able to begin. The selling price of each aqua cell will range from $750,000 to $3,000,000 each depending on the size. There is a worldwide market and a dire need for this closed containment fish rearing system. How many can be sold is unknown, but it would seem really conservative to think that they can sell at least two per month given the size of the market place and having no competition. Using an average price of $1,850,000 per unit and assuming an even more conservative sales figure of one per month, it equates to an additional $22,000,000 dollars per year in gross revenues. The Ento-protein and algae to bio-fuel programs are considered future income streams, The Ento-protein feed product which has already received letters of intent to purchase by large US corporations has the greatest income upside potential of all products in the writers opinion as it market capacity will exceed easily over $250,000,000 annually once its manufacturing facilities have been constructed. The bio-fuel is not expected to generate more than a few million annually and not for a few more years.
If you were one of the wealthy note holders, and you invested in a company that only stated its potential, would you not continue in a company that had now proven it? More than Likely.
This is not a recommendation to buy or sell shares in NPDI. It is strictly the writers unbiased opinion
