Part two is not complete but I will post what I have so far.
Suretrace Security Inc.
Part 2
Suretrace Security’s bold and smart decision to go after China market
Before I go into the recent events that lead up to the signing of the service agreement that True Product ID Technology (Beijing) Limited signed with the National Brand Cartel Anti-Counterfeiting Cooperation Network – Brand315 where the contract calls for the joint venture to mark 2 billion labels of the top brands in China, I want to go back for a moment and give a timeline of events leading up to 5/26/2005 when the company’s new President and Vice Chair Mr. Michael Cimino took over.
As I stated in part one, the brief company history from sec filings. Here is the timeline:
1983 – White Cloud Exploration – to seek profitable business opportunities.
1991 – White Cloud merger with ATI was cancelled due to accounting difficulties.
1997 – William C Meier acquired common stock in White Cloud Exploration.
2000 – White Cloud Exploration acquires Cormax Business Solutions LTD.
2002 – Identex files patent in U.S. App# 10/094,297
2003 – White Cloud Exploration acquired all of the issued and outstanding shares
Of Identification Technologies Inc. a private Alberta corporation (“Identex”}
Immediately following the acquisition if Identex , the company changed its name to Sure Trace Security Corporation.
Now what becomes interesting is what happened between the acquisition of Identex in January of 2003 up to May 26th 2005 when Michael Cimino took over as President. Here is the information that I have looked at and my personal opinion of what happened.
After the Identex acquisition, Suretrace decided to go after the existing markets that Identex had been working on. These markets included loss prevention, authentification and anti-counterfeiting products throughout Canada on a direct sale basis. The client list included Bombardier, Ford Canada, GM Canada, Stelco Steel, Irving Oil, Toronto Transit and Atomic Energy of Canada.
Identex manufacturers a chemical formulation known as "taggant", which is forensic fluid often likened to DNA. Once applied to the surface of literally any asset (tools & equipment), it actually sinks beneath the surface and bonds with the asset on a molecular basis. Removal of the mark is extremely difficult without obvious damage to the asset. The taggant can withstand extreme abrasion; extended baths in acids and solvents, and even 3,0000F (2,4000F melts glass). Once applied, ownership can be guaranteed with certainty. For example, two identical assets owned by two different companies can be correctly identified as to which asset belongs to which owner with 100% accuracy, 100% of the time.
Continuing with my thought from the previous paragraph, after the Identex acquisition, Sure Trace decided to go after these existing markets. Then on September 11th 2001 when The United States was attacked by terrorists, the company included in their marketing plan security issues such as passports, immigration documents, currency, personnel id badges, airspace security, authentification of art collections, lottery tickets, casino checks and playing cards. With the use of Identex’s taggant and Niton’s scanner. The company admitted at the time that the Niton scanner was not the ultimate solution.
In my opinion the marketing of loss prevention, authentification and anti-counterfeiting products to Identex’s existing clients mentioned earlier was just not bringing in enough revenue or maybe Sure Trace realized at that time that the biggest market for their product line was in China. I believe the latter is the case. This I believe is when Mr. James Mackay decided his vision for the company would be changed. The new focus would be on the biggest market in the world – China. I do believe that some of Identex’s clients still have the potential of being clients of Sure Trace in the future, however once Sure Trace is recognized as the Chinese Government’s standard solution for anti-counterfeiting efforts, authentification, tracking and many other uses, then and only then will we be able to prove to the rest of the world the unique value and effectiveness of our products and services.
Continuing with the timeline:
5/2003 – Resignation of old Accountant and engagement of new accountant.
4/2004 – Code of ethics for senior financial officers and the principal executive officer of Sure Trace established.
This is the time period when I believe Mr. James Mackay realized he had a big problem on his hands. He had financial officers and executive officers of the company trying to destroy the company and steal the technology and clients.
5/26/2005 Mr. Michael Cimino is retained as the new President and Vice-Chairman. Mr. Cimino, will coordinate and oversee the structure of any resulting relationship between the company and its Chinese partners.
AI
