dytic services a nd products provided by Standard & Poor's are the resu lt of sepa rate acti vities designed to preserve the independence and objectivi ty of each a naly tic process. 1dard & Poor's has established policies a nd procedures to ma intain the confid entiality o f non-publi c info rma ti on rece ived during each analytic process.
ENCHANTING IN THE TRANQUILITY OF ITS SEASIDE SETTING , THE HYATI REGENCY HUNTINGTON BEACH stands sentry over Southern California's romantic Pacific coast. Beneath the gaze of a brilliant sun and the welcome of sea swept breezes , this is a place that both excites the senses and calms the soul. Every comfort is indulged .. . richly appointed guestrooms with hypnotic vistas of tropical landscapes, lagoon pools and the endless horizon of the sea .. . the soothing and tranquil Pacific Waters Spa , reminiscent of a romantic turn of the century Spanish estate ... culinary delights from eclectic surf fare to sophisticated California cuisine . .. refined social and business gatherings amongst dramatic vaulted ceilings , elegant iron works and lush courtyards .
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Communi ue
Your Success is Our Success At the end of the day, ValueRich's success is connected to your success. We want to become a part of your everyday business strategy. Through ValueRich magazine, the ValueRich Small -cap Financial Expos and our upcoming community Web site, we are creating new energy around emerging public and private companies. We are changing the way all industry players interact to find opportunities and share ideas. As a global media-based company, ValueRich is the first to take an industry-wide approach to bringing public companies and Wall Street together. Consequently, we are the only company bringing multiple investment banks under one roof in a Bankers Row at our small-cap financial expos. Soon we' ll be doing the same thing online. It is important for us to stay in touch with the activities of our readers, clients, partners and vendors and become truly integrated in the small-cap world . Some of our new initiatives reflect this desire. • GET PUBLISHED. ValueRich will publish any relevant and interesting news that we receive d irectly from our readers. In upcoming issues, we will be adding news, events and social sections to highlight all of your achievements - so tell us everything. Send us updates on your deals, companies you signed as clients, your newest and most important hires, opening of new offices and expansions, corporate and social gatherings. Allow us to tell the world what's going on with you. For consideration, send highresolution images to editor@valuerichonline.com. • Beginning in 2007, Va/ueRich magazine will increase distribution to six times a year. We believe that Va/ueRich is the only high-quality pure-play financial magazine dedicated to the micro- and small-cap financial community. Expanding the number of issues will allow us to cover more current news, trends and topics, and bring you the most in-depth information about the individuals that make up this space. Public company CEOs, investment bankers, money and fund managers, institutional investors, investor relations pros, research gurus, accountants, lawyers and business consultants are all looking for the same thing -to do deals and make lots of money. Let's work together and get those things done. • We are really excited about having the Wynn Las Vegas as the venue for our October 25-26 ValueRich Small-cap Financial Expo! The new $2.7 billion resort from developer Steve Wynn is one of the world's finest events destinations. The excitement is catching . Some great quality companies and sophisticated financial professionals have signed up early. If you haven't been to a ValueRich Expo, you should make plans to come and check us out in Vegas.
6
VALUERICH MAGAZINE
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New from
EDGAR"
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VALUERICH THINK SMALL-CAP
Joseph C. Visconti
Micro-cap is not a Dirty Word
Preside nt & CEO joseph @vrexpo.net
David A. Willson
"As GM goes, so goes the nation:'
Editor-in-chief dwillson@valuerichonline.com
Remember that one? It used to be considered a clever way of stating the obvious: big industry had its hand on the throttle of our economy and steered government in whatever direction it wanted.
Liza Grant Smith Managing Editor liza@va luerichonline.com
Sure. Big companies and certain industries still exert a lot of influence on government, the markets and our lives. But if the nation went the way of GM, Microsoft and IBM, we would have had a pretty sluggish economy the last few years.
'
J.C. Spradley Art Director jcs@va luerichonline.com
New York Contributing Editor
On the contrary- our economy has kept chugging along. So it begs the question: If big companies have been listless, where is all the economic energy coming from? We think it's pretty obvious -little companies.
Thoma s Werner
Contributing Editors Kayla Willson Rita Samols
Contributors Will Andrews
In this issue we have interviewed a highly successful PIPE investor and four investment bankers who would not only agree, but have some very specific things to say about how and why micro-caps are a great space to be in, provided you are aware of the special circumstances they face.
Advertising & Convention Sales Gregg Lowenstein Vice-President of Sales greggl @valuerichonline.com
Ashley Sosner Director of Corporate Development ashley@valuerichonline.com
Dave Roeder
We've been paying close attention to the companies and professionals we've encountered while publishing Va/ueRich magazine and hosting the ValueRich Small-cap Financial Expos, and we've come to the conclusion that a lot of what passes for conventional wisdom about micro-caps on Wall Street and in the press is not necessarily accurate. But that is understandable, because until ValueRich , there has never been an industry-wide venue connecting the various factions of Wall Street and small-cap America so they could openly share information and ideas. ValueRich has created a fertile ground for new ideas and relationships. We've been taking notes and making plans, and soon we will be unveiling several enhancements to Va/ueRich magazine as well as some new ValueRich products and services in the coming months. One enhancement is already with us in the form of our new Managing Editor, Liza Grant Smith. Longtime readers will recognize Liza as the author of many business and Company Connect articles in past issues of ValueRich . She brings with her a wealth of research experience and a talent for conducting superb in-depth interviews. We are looking forward to the o utstanding contribution her broader editorial involvement will bring . Liza and I welcome your letters, comments and suggestions. You can e-mail us at editor@valuerichonline .com.
David A. Willson Editor, ValueRich magazine
8
VALUERICH MAGAZINE
Director of Business Development droeder@valuerichonline.com
Pabla Ayala Sales/ Marketing Assistant pabla @valuerichonline.com
i I Lance McCoy 1 !
Account Executive lance@valuerichonline.com
Beni Tsurumi Account Executive beni@valuerichonline.com
Brad Reese Account Executive brad @valuerichonline.com
Reed Smith ChiefTechnology Officer reed @valuerichonline.com Copyright 2006 by ValueRich, Inc. All rights reserved. Reproduction without the permission of the publisher is prohibited. The publisher and editors are not responsible for unsolicited material. Return postage must accompany all manuscripts, photographs and drawings. Every effort
has been made to assure that all information presented in this issue is accurate, and neither ValueRich magazi ne or any of its staff is responsible for omissions or information that has been misrepresented to the magazine.
Va/ueRich magazine Issue 8 Summer 2006 is published quarterly by ValueRich, Inc., 1804 N. Di xie Highway, Suite A, West Palm Beach, FL 33407. POSTMASTER: Send address changes to ValueRich, 1804 N. Dixie Highway, Suite A, West Palm Beach, FL 33407. 561-832-8878, Fa x: 561-841-1524 www.valuerichonline.com
WWW. VALUERICHONLINE .COM
Available at
<!tigar
Connq)Sseur
11924 West Forest Hill Boulevard, Wellington FL 33414
T 561 204 2299
F 561 204 2007
E cigarconnoisseur@msn.com
From the outset, the Miami ValueRich Small-cap Financial Expo pulsed with an energetic beat. The Hotel InterContinental, Miami was an outstanding setting, combining plenty of space for the large-scale event with lush hotel amenities that enhanced intimate networking. Sixty-six public companies, investment banks and industry partners attracted 1,200 buyside attendees for two days of non-stop financial presentations and networking that included a new ValueRich innovation on the first day, the Lightning Round -a full schedule of five minute overv iew presentations by the CEOs of every exhibiting company. This created great energy around the company expo suites and at their full financial presentations the next day. Fine Visconti pens were a doo r prize at each presentation, further boosting attendance. On the first day, Amex CEO Neil L. Wolkoff delivered a keynote speech to micro-cap and smallcap public companies, saying that they should consider the Ame x an advocate in their quest for growth . A full luncheon crowd listened as the CEO of The TUBE Music Network, Les Garland, told stories from his days as cofounder of MTV and presented The TUBE's strategy. On the following day, CEO of Dolphins Enterprises, Joseph Bailey, remarked on the similarities between sports franchises and micro-cap public companies. The Expo wasn't all business. ValueRich hosted Caribbean buffet and Mojito happy hours and a Miami Beach Mansion party. Most participants left the Expo saying their expectations were exceeded.
Miami's hot South Beach party scene is legendary, but ValueRich may have set a new bar with its Expo Mansion Party. Guests arrived by luxury coach at a Miami Beach mansion, with multimedia music, dancers, hand rolled Torano Cigars, mojitos and Dolphins Cheerleaders.
12
VALUERICH MAGAZINE
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l.Contents
Summer
2006
VALUE RICH
THINK SMALL- CAP
Cover Imag e by Th o mas We rner Photo graphy
i .Want.l
l8
From stunning LCD TV's to the ultimate objet d'art, this issue's collection of unique
n. Spiration
40
stuff wi ll have you saying, "I want one:'
l &Only
22
Divine Delineator
By David Willson
46
Designed according to the Divine Proportion, this beautiful limited
26
Paper Lions The Personality Portraits of Sebastian Kruger
LivingSculpture Kevin Robb is known for his bronze and stainless steel sculptures that seem to float effortlessly and sweep through the air in a lively dance.
edition Visconti pen is one of a kind .
By David Willson
n.Motion
x. Peditions
Time Traveler: Spyker's new Sci-fi SUV concept for the rich and famous
48
Santa Fe, New Mexico Experience Ten Thousand Waves of Pleasure By Kayla Willson
At first glance, the Spyker Dl2 Peking-toParis looks like something cooked up by Hol lywood for a time travel sci-fi movie. By Will And rews
54
Wynn Las Vegas Splendid to the Smallest Detail By Kay la Wil lson
Cover Story
34
Playing New York Hold' em Adam Benowitz of Vision Capital Advisors Likes Betting on Quality Companies By David Will son
]4
VALUERICH MAGAZINE
WWW. VALUERICHONLINE .COM
Nationally Recognized, Award Winning Wealth Management.
When only the best will do, you deserve the team that won CPA Wealth Provider's Financial Planning Award for leadership and innovation in financial and estate planning.
VITALE, CATURANO
&. CoMPANY
AuomNG AND TAX • BusiNESS ADVISORY • TECHNOLOGY CoNSULTING • WEALTH MANAGEMENT 80 City Square, Boston, Massachusetts 02129 617 • 912 • 9000 www.vitale.com ~
an Independent Member of Baker Tilly International
2.Contents
Summer 2006
VALUE RICH TH IN K SMALL- CAP
n.Business
Inside Micro-cap Finance 60 What most people know about micro-cop
Company >< Connect
68
investment bonking is just the tip of the iceburg
lncrediMaillnc. (MAIL)
By Liza Gra nt Smith
64
VALUERICH Small-cap Financial Expo, Las Vegas It's Time to Shuffle Up and Deal!
'You've Got lncrediMail' lncrediMoil has been downloaded by 70 million people in over 100 countries in nine languages By Liza Grant Smith
72
Mission Possible Eliminating the unacceptable, Biophon gains profitable allies Biophan Technologies, Inc. (BIPH) By Li za Grant Smith
80
The VALUERICH MarketPlace: Where Small-cop Public Companies State Their Financial Objectives
76
All Charged Up Electro Energy's bipolar batteries ... longer, stronger, smaller and less expensive Electro Energy, Inc. (EEEI) By Liza Gra nt Smith
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VALUERICH MAGAZIN E
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Whether you are an emerging firm seeking venture capital, a mid-market company considering a public offering or a group looking for public or project finance, call Cozen O'Connor. We bring our experience to your table and help you take stock of your needs, building value for your company. For more information: Ralph V. De Martino, Vice Chair Securities Offerings and Regulations Cozen O'Connor Washington, DC Office 202.912.4825
0
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~J COZEN O'CONNOR.
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1900 Market Street · Philadelphia, PA 19103 · 215.665.2000 · 800.523.2900 · www.cozen.com
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More Than 500 Attorneys: At lanta ·C harlotte ·Cherry Hill ·Chicago ·Da llas ·Denver . Houston ·London
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i'l
The
Big Bang
If you shun the ordinary- if style is a primary ingredient of everything you do- then this is the 40-inch LCD TV you've been waiting for. It's hard to decide what's more beautiful -the BeoVision 7-40 from Bang & Olufsen or its gorgeous LCD picture, rendered with outstanding texture and color depth, using 800:1 contrast. You can even tilt or swivel the screen using the remote control to eliminate that last little bit of glare. The 7-40 has more in common with contemporary sculpture than a typical high-end HD TV. From its glass-surfaced, highgloss black screen frame to its anodized aluminum trim and floor stand, the fit and finish are superb. The trim and the external speaker bar positioned under the screen can be ordered in black, dark gray, red, blue or even a bespoken color. With the speaker bar configured to three-way stereo, the
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VALUERICH MAGAZIN E
sound quality of the 7-40 goes beyond anything you expect from a TV. But, better yet, you can also configure it as the monaural center speaker in a phenomenal B&O surround-sound package. Run your fingers just underneath that bump at t he base of the screen, and a disc tray whispers out for CDs and DVDs playing DivX files, MP3 files, JPEGs and Video CDs. The 7-40 does not include its own digital tuner, but its HD-ready connections include DVI input and component video jacks, a D-Sub jack for computer use and three SCARTs for legacy RGB equipment. Of course B&O style comes at a high price. Once this baby is available in the States, you can expect to spend at least $14,000 to make it the focus of your living room .
www.bang-olufsen.com
WWW.VALUERICHONLINE .COM
i.Want.l
Wide-eyed Digital The problem with being the first to own new technology is that you can wait months or longer for compatible equipment. If you own a state-of-the-art High-D efinition Multimedia Interface (HDMI) equipped television , you know what we're talking about. Most camera s and camcorders today must be connected to HDMI televisions using the interface's backward compatibility to mpeg data streams.
WWW. VREXPO . NET
Samsung is the first to release a digital camera with an HDMI interface: the 8 Megapixel Digima x L85 . Using an optional HDMI image dock, images from the L85 will appear on your HD TV with all of their full color depth and clarity. You can even choose to shoot in panorama mode, matching the wide- screen format. The L85's classic film -camera styling signals that it is geared toward advanced photo enthusiasts. It sports a 7.8-23.44mm lens with 5x optical zoom manufactured by the world -renowned Schneider Kreuznach Company. You can shoot in aperture and shutter priority modes as well as an "old-school " manual setting. If you'd rather just point and shoot , the L85 offers 11 ~ c e n e modes including a te xt recognition mode to shoot documents and extract text files using the bundled software. Though not compact, the classically designed black and silver body offers a comfortable grip and simple ergonomic design featuring a vivid 2.5-inch (230K pi xel) LCD display with a wide viewing angle, as well as an elegant user interface. With the L85 's speedy boot time and quicker shot-to -shot respon se, you can take pictures immediately after powering up, and ju st keep snapping . Digimax L85 camera's street price is about $350 .
www.samsungcamerausa.com SUMMER 2006
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Pieper Glass, Tall Form, glass, by Kenny Pieper (top), $1,850
Nail Rings, iron, 18k gold and stones, by Rob Jackson, $500-$1,000
American Dreams Not every unique and stylish objet d'art comes from an ultra-hip design studio in Milan. If your summer vacation takes you down the Blue Ridge Parkway near Asheville, North Carolina, you could easily drive right by one of the best places in America to discover the next centerpiece for your home, yacht or penthouse apartment- the Penland School of Crafts. Penland grew out of a local weavers' cooperative founded in 1923. Today, over 1,200 people each year seek instruction in studios for Books & Paper, Clay, Drawing and Painting, Glass,
WWW.VREXPO. N ET
Contrition Second Study, 2003, cast opal glass, acid finished, by Mark Peiser (above), $7,500
Iron, Metals, Photography, Print, Te xti les and Wood. The faculty list reads like a compendium of America's finest crafts artists. Located on campus, the Penland Gallery holds special exhibitions and offers faculty artists' work for sale . The 2006 exhibition schedule includes Ethos: Craft and Social Conscience, June 13-July 30, and Gathering : A Survey of Contemporary Glass, August 8-0ctober 1. www.penland.org
SUMMER 2006
21
J.&.Only
Divine De ineotor Visconti Pens are known for reintroducing the lost art and beauty of celluloid pens to contemporary customers. True to its heritage of reviving the best traditions in materials and design, Visconti recently released its newest limited edition pen, "The Divine Proportion:' The Company was founded in 1988 by two "Old World " artisans, Dante Del Vecchio and Luigi Poli. Upon reading Dan Brown's TheDa Vinci Code, Del Vecchio, who had already been strongly influenced by Da Vinci's Vitruvian Man while researching and designing Visconti's iconic "Squaring the Circle" pens, became intrigued with the idea of a perfect pen celebrating the ancient concept of the Divine Proportion .
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VALUERICH MAGAZIN E
The Divine Proportion is based on the golden number 1.618, also called phi, which defines the "ideal relation :' Al so called the "golden mean proportion" or "golden section;' phi is used to trace circles divided by decagons or pentagons. Euclid was the first to theorize these calculations. Before him, Pythagoras and his disciples believed the golden number was sacred, particularly the pentangle, which they adopted as their symbol. Visconti 's Divine Proportion pen is constructed to include the concepts of the golden number, the pentag ram and the nautilus. The golden number is used to measure the ratio of the length of the cap to the length of the pen . The pentagram, adapted to the
~P.I~
Visconti founder, Dante DelVecchio demonstrates "The Divine Proportion" pen to Nick Nolte at the 2006 Cannes Film Festival.
ergonomic necessities of a writing instrument, is the shape of th e pen itself. And the nautilus, or "golden spiral " defined by the Fibonacci sequence, is traced on its barrel. What would a divine pen be without a mystery? The Divine Proportion pen has five hidden numbers built into it that, when added together, equal the number phi. The first 100 customers to register on the Visconti Web site and solve the Visconti Cryptex will receive a golden inkwel l. "The Divine Proportion" pen was produced in a limited edition of 1,618 sterling silver ($1 ,618) and 618 18k solid gold pens (sold out). www.viscontiusa.com
WWW.VALUERICHONLINE .COM
I
I
I
YOU'VE EARNED YOUR PLACE IN THE SOUTH FLORIDA SUN .. .AND ITS CALLED TRUMP LAS OLAS BEACH RESORT. Redefining the personal luxury beach destination , these ultra-luxurious new hotel condominium residences are locate d directly on beautiful Fort Lauderdale Beach . It 's a setting so perfectly suited to complete relaxation and self-indulgence that nothing less than a Trump property would do. And what a property it is. A collection of just 95 sublime beachfront condominiums just steps away from the upscale boutiques , galleries and restaurants of Las Olas Boulevard, Trump Las Olas
Yet this setting of incredible natural
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is just the beginning. Located directly
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on the beach, these stunning studio,
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one- and two-bedroom residences offer
and vistas of the calm South Atlantic,
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experienced from an entirely new per-
ings and all the amenities you'd expect
spective on the resort's fabulous pool
WITH AN URBAN BEAT
of a five-star hotel bearing the interna-
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tionally-acclaimed Trump name. Private
One measure of a worldly city is its
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exercise in the Fitness Center, poolside
bath appointments and personalized
Lauderdale is 5 minutes from its
food and beverage service , an in - room
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international airport and less than 40
or poolside massage, the attentive pam-
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minutes from those in nearby Miami
pering of a superlative service staff.
with a beautiful beach as your front yard,
and West Palm Beach. Trump La Olas
Beach Resort is close to Fort Lauderdale ' s Convention Center. Miami 's world-famous South Beach is just a short drive of less than an hour away . We are truly at the center of all that one could want to see and do in South Florida.
TRUMP LAS OLAS BEACH RESORT: PROUD TO CARRY ON lN THE TRUMP TRADITION OF EXCELLENCE The Trump signature is known and trusted
Their well-honed professionalism and
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exciting hotel condominium to rise on
The Trump La s Olas Beach Resort.
glorious Fort Lauderdale Beach. For this
Owners and guests will be extremely
project, Trump has partnered with 550
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Seabreeze Development, LLC.
luxury to be found here. &
T RU
P
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WWW.VREXPO .NET
SUMMER 2006
27
The Spyker 012 Peking -to-Paris so t horoughly combine s 19th century coachwork sensibilities with early 20th century aircraft styling and 21st century supercar technology that it looks like some cross-dimensional visitor from a parallel universe. But it is not a time traveler 's daydream . Netherlands-based Spyker cars sees the 012 Peking -to-Paris as a direct connection to their hi storical roots . In 1898- about the same time that H.G. Wells published The War of the Worlds- two Amsterdam coach builder b rothers Jacobus and Hendrik-Jan Sp ijker built the first Spyker motorcar. They went on to introduce the first car in t he world featuring permanent four-
wheel drive and four-wheel brakes. It also was the first to be powered by a larger six- cylinder engine. Spyker cars became famous for their lu xurious quality and ruggedness, but their reputation reached further heights in 1907 when a standard model Spyker 14/ 18HP Tourer participated in the historic Pekingto-Paris Raid, taking second place in the grueling cross-continental race. During Wo rld War I Spyker ceased automobile production and built airplanes, but resumed building cars when the conflict ended. The 1919 Spyker Aerocoque was stylistically way ahead of its time with an aircraft influenced body sporting a tailfin . Their cars continued to
break endurance and speed records until the company eventually folded in 1925. The new Spyker cars, founded on the first day of the new millennium in the Netherlands, is understandably proud of the history behind the Spyker name. They show their pride by incorporating turn-of-the -century coach building and aeronautic design themes to their cars. The resulting mi x of design metaphors has given birth to some cars that are stylistically among the most distinctive on the planet. The Spyker 012 Peking-to-Paris SSUV not only references the Company's past with design, it refers directly back to the very technology Spyker first introduced to motoring, and a
In 1907, a Spyker 14/ 18HP Tourer (left) took second place in the Peking-to-Paris Raid cross-continental race. The Spyker 60/80 HP (center) was the first car wit h a six-cylinder engine, four-wheel drive and four-wheel brakes. The 1919 Spyker Aerocoque (right) had an aircraft influenced aerodynamic body.
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VALUERICH MAGAZIN E
WWW.VALUERICHONLINE .COM
n.Motion
history of go anywhere ruggedness . Hollywood Ingenue Spyker may be a Dutch company steeped in history, but their present day culture is pure Hollywood excess. When the C8 Laviolette (ValueRich, winter 200S ) was launched in the American market at the Los Angeles Auto Show in January 2006, Spyker CEO Victor Muller alluded that several celebrities had already put in early orders for the car. Actress Sharon Stone drove the C8 Laviolette in the recent film Basic Instinct 2.1n the opening minutes of the film , her risk addicted character, erotic novelist Catherine Tramell, careens the C8 Laviolette wildly through the pre-dawn streets of London at 110 mph while in the throws of screaming, head -tossing sexual ecstasy until ultimately she loses control of the car and plunges the C8 into the Thames river. As film imagery goes, the over-t he-top scene is somewhat ludicrous, but it 's right on message for the Spyker brand, and practically a commercial for Spyker's well-cultivated image of sex, power and thrills. Spyker recently announced that two more of their cars, a C8 Spyder WWW.VREXPO .NET
and a C12 LaTurbie will appear in the Lionsgate action film Rogue, starring Jet Li and Jason Statham. This BMW-like product placement strategy shows just how serious Spyker is about selling in world markets. So far, the C8 Laviolette has garnered a great deal of attention for a boutique hand-built supercar. And they are very optimistic about the 012 Pekingto-Paris SSUV, which is scheduled to go into production in 2007. Spyker has introduced four different supercar models in less than six years, but the D12 Peking-to-Pari s SSUV represents an entire new product line. Spyker has quickly grown from a small twopartner business to a public company with over 100 employees, attracting major shareholders such as Mubadala Spyker CB Laviolette
Development Company from Abu Dhabi and MerchantBridge from London . In fact, His Excellency Khaldoon Khalifa AI Mubarak, CEO Mubadala Development Company and Victor Muller, CEO Spyker Cars, were coannouncers of the D12 Peking-to-Paris at the 76th Salon International de !'Auto in Geneva. The Spyker D12 Peking-toParis SSUV has oil-rich sheik written all over i t - which is just as well, because you'll need a producing oil well to afford the unique high-performance veh icle. The price is expected to come in at just under $300,000. But for that, you get a lot of power, decadent comfort and eye popping style in a relative ly lightweight, spaciou s, four-wheel drive, four-door, four-seat lu xury SSUV. In Spyker-speak, SSUV ~
SUMMER 2006
29
The Spyker D 72 's canopy covered interior (top) is accessed through front and rear hinged doors (above).
st ands for Super Sports Utility Vehicle. This is actually a bit of a misnomer. With very little cargo space there's not much Utility to thi s vehicle. It's really more of a Super All Terrain Sports Limo -a terrain crunching ultra-blinged road racer for the rich and famous. 30
VALUERICH MAGAZ IN E
Spyker and their partners have put together a great platform and engine combination to reprise the car's rugged Peking-to -Paris race heritage. The D12 features a 500 horsepower W12 engine from Volkswagen AG that puts out 450 foot-pounds of landscape altering torque.
SUV? W12 engine? Does this ring a bell? That's because at the very heart of the Spyker, there's a lot of shared technology with the limited edition Volkswagen Touareg W12 Sport that debuted last year. Along with the 6.0-liter Volkswagen AG W12 engine, the Spyker D12 Peking-to-Paris' four-wheel drive system comes from Volkswagen Touareg . The Touareg 's drive system has proven to be one of the best. It has placed well in the rugged Dakar rally since its first run in 2004, taking second place this year. The final Teutonic touch is a lightweight aluminum body made by Karmann in Germany. The aluminum body and chassis weigh barely over 4,000 pounds. As a result, the 6.0-liter, 500 horsepower W12 engine accelerates the SSUV from 0-60 mph in 5.0 seconds . Top speed is 185 mph. In true supercar fashion, the D12 will come standard with state-of-the-art AP Racing carbon ceramic matrix brakes on its 24" wh eels WWW. VALUERICHONLINE .COM
and Koni FSD shock absorbers. But with a fuel tank capacity of 22 gallons it 's designed for distance as well as speed .
Spyker Style You gotta love Spyker. In a world w here new Ferrari models are looking more like Fords, Spyker has put the capital C back in the term concept car. The Peking-to-Pari s' Karmann body looks like a C8 Laviolette that has been stretched vertically and bulked out. The overall sens e is of a bea utiful, bej eweled, high-powered mon ster. Spyker's trademark gla ss ro of, lavishly chrom ed body accents and AerobladeTM wheels are all th ere. But it is their interiors that really set Spyker cars apart, and this one is no exception . This is an interior that should be showcased in dramatic fashion, which is artfully done when you open the front and re ar-hinged re ar coach doors - like 32
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curtain s parting on a lavish stage set. Details run rampant. Diamond-stitched glove leather upholstery- alluding to Spyker's royal coach building heritage - covers every surface, trimmed and accented by copious amounts of polished brushed aluminum. One gets the impression of a bespoke leather airplane cockpit for Howard Hughes rather than an automobile interior. Aircraft references abound, including a triple dashboard, toggle controls, propeller accents and some wing strut-shaped chromed stanchions supporting the center beam of the glass canopy style roof. There is still pl enty of automoti ve gear in plain view to remind you that you're on the ground. Spyker has installed three sets of gauges for the driver, front and rear passengers alike. And it wouldn't be a Spyker without the exposed, polished chrome shifter mechanism on
the center console. The D12's six- speed automatic transmission also features Fl type shift paddles on the multifunctional racing style steering wheel. By upping the comfort level, Spyker is betting on strong interest among aging supercar enthusiasts in the U.S., China and the Middle East. The Company has recently revamped their Web sites to accommodate Chinese and Arabic language versions, and announced new dealerships in Detroit, Pompano Beach and Beverly Hills. Their Middle Eastern dealer network includes Jeddah, Saudi Arabia and Kuwait City as well as Dubai and Abu Dhabi in the UAE. Yes, if Spyker ha s their w ay, sometime in the near future, their powerful , jewel -like custom -built cars won't just be wowing peopl e at auto shows and in the movies. They 're coming soon to a st reet near you . V R
www.spykercars.com WWW. VALUERICHONLINE .COM
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Playing New York Hold 'em By David Willson Adam Benowitz of Vision Capital Advisors LLC likes betting on quality companies. Vision is located in a low-key office on the 12th floor at 317 Madison Avenue in New York City. Benowitz and his team of 12 staff members plus some contract analyst s specialize in helping micro-cap and small-cap public companies raise capital through PIPE investments. Benowitz started Vision Capital Advisors, LLC with his childhood friend Randolph Cohen as an advisor. Despite their early friendship, Benowitz and Cohen took very different paths to Wall Street. After receiving his degree at the University of California at Berkeley, Benowitz wa sn't quite sure what he wanted to do, so he focused on something he was very good at and became a professional poker player. Eventually, someone he met playing poker offered him a job at Susquehanna Investment Group, one of the largest specialist firms in the country, as a derivatives and bonds trader on the floor of the Philadelphia Stock Exchange. He later moved on to the American Stock Exchange, as a special ist in biotech and other equity stock options for Susqu ehanna . More recently, he has been a head trad er for three major investors, including Rose Glen Capital , one of the world 's largest Regulation D (PIPE) investment companies, which at its height controlled over $600 million in capital. Cohen, on the other hand, took the academic route, first earning his Ph .D. in finance from the University of Chicago and then landing a job teaching at Harvard Business School, where he teaches the Investment Management course in the Elective Curriculum of the MBA program . Professor Cohen is an expert in the investment management industry, especially eq uity markets and PIPEs in particular.
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The two came together to run Vision Capital Advisors, specializing in PIPEs, because they realized in 2003 that this niche in the market lacked long -term and, more importantly, long -only investors willing to take companies under their wing and help them succeed with financing. The childhood friends function as left and right sides of the brain at th e firm, holding separate roles and responsibilities. Benowitz is responsible for the day-to-day operations overseeing the deal team , while Cohen tends toward long-term thinking -that is, strategic planning, valuation and risk management.
'Randy and I named the company Vision Capital because I'm blind in one eye and he's got the world's worst eyesight/ he laughs. Cohen is known for his academic rigor, turbo-fast talking and dedication to strong analytics and research . He brings a note of conservatism to the company, although appearancewise, he's lucky if he chooses a jacket and pants from the same suit. Sporting jeans and T-shirts more often than pinstripes, the affable and boisterous Benowitz seems to thrive on chaos, dealing with a dozen things at once. Staff members pop in and out of his office nonstop. He'll interrupt his own sentence to take a phone call, answer a question, render judgment on an issue, and then finish the sentence. He inhabits the room completely. He is doing difficult work, where a lapse in judgment could cost millions, and he clearly enjoys every minute of it. And then there is his right eye. Benowitz lost the use of it in a camp accident as a kid. It's a bit disconcerting
when you first meet him because the eye looks off in another direction . With only one good eye to see through, he makes broad head motions and has to peer closely at his cell phone to read the display. He doesn't seem selfconscious, however. In fact, he even jokes about it. "Randy and I named the company Vision Capital because I'm blind in one eye and he's got the world 's worst eyesight," he laughs. And there it is. Two sight-challenged but insightful friends from the suburbs of Philly united by a common belief that small companies are where the real opportunities lie. Vision Cap ital specializes in micro-cap and small-cap strategies. These strateg ies span a range of options: common stock or a derivative security convertible into common stock, or even a combination of equity and debt. Because companies receive money prior to filing a registration statement with regulators, PIPEs can be a more efficient way to raise money. In a PIPE transaction, companies can bank the proceeds within a matter of weeks, as opposed to months or years in a public offering. This prompt funding is probably the main reason why, in 2005, the PIPEs market grew to $25.8 billion, up from $18.7 billion a year earlier (PrivateRaise.com).
Knowing When to Hold Them Vision Capital Advisors differs radically from other PIPE investors, which have been known to bet against a company and make money on "shorting;' or wagering that the company's stock price goes down. "We earn more by betting on the upside, and eve ryone wins, not just the investor. If the stock doubles, we can make, for instance, 10 times our money, and the CEO and other shareholders might make multiples of that. Even retail investors win ;' Benowitz says. "That makes us different from everyone WWW. VALUERICHONLINE .COM
Cover Story
else, because we're helping companies navigate Wall Street, providing market support and helping the company find additional business and investors." Micro-cap and small-cap companies fascinate Benowitz because on Wall Street they are the classic underdogs. "If the company is IBM, everyone on Wall Street is on the company's side," he says. "A big investment bank can make $500 million on a $10 billion IBM bond offering. Those bankers won't be bothering with this niche. So, what we do is help small companies by allying ourselves with them ." What's the potential downside? Vision bets with the company, and because they do not short, "We could lose all our money alongside of the company, so we're very motivated for them to succeed. We're revolutionizing the space by not being predators." Vision Capital also boasts a longer holding period than most investors in PIPEs. Vision generally holds its companies for one to two years, and often will re-up for additional financings.
Shuffle Up and Deal Due to the length of time it takes to file a public offering through the SEC, PIPEs have become the preferred popular source of funding for small public companies. There were a total of 1,657 PIPEs deals in 2005. These transactions have changed the industry. David Skriloff, one of Vision's team leaders, explains, "There used to be this road show circuit, a multi -city tour that public companies would take to fund a public offering. Today, everyone comes to New York and ha s meeting s with one PIPE investor after another." The process may be quicker through a PIPE, but that doesn't mean that it is less intensive. Companies that show up on Vision Capital Advisors' horizon are thoroughly vetted by Vision's crack analyst teams. All applicant companies go through initial pre-qualifying research . Vision takes a pass on most of them . However, companies that are presented by certain known sources, WWW.VREXPO .NET
SUMMER 2006
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'We're old-fashioned investors. We hedge the market, but we don't hedge any stocks.' who have earned a reputation for doing a thorough job packaging the company 's data and information, will frequently be moved to the head of th e line for a more serious look. Next, Vision analysts, and sometimes Benowitz himself, will visit the company at its location . Benowitz feels that this is a very important step that allows Vi sion to get a true sense of the culture and potential of a company. If they still like what they see, Vision then asks the company to come to New York for a substantive meeting
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with an analyst team . The teams are mixed and matched for each deal, based on the individual team members' specialties and talents. The company officers will run a gauntlet of questions on virtually every subject the team brings to the table. The team then produces a report recommending the terms of the deal, which is determined by a number of factors but is a direct reflection of how the team has assessed the company. At this point Benowitz and the team members debate the deal as recommended. "I believe you surround yourself with the very best and most talented people," says Benowitz. "And then you create an environment where everyone is encouraged to speak up. Our meetings are often very dramatic. Everyone says their piece." Benowitz will then set the terms of the deal that is offered to the company. "It's not always the same as my team's report recommended," says Benowitz. "I'm the negotiator here:' Companies are thrilled, because in the process Vision has identified all of the strengths and weaknesses and usually suggested or even provided the means for businesses to improve. "We take care of a company;' says Benowitz. "The stock goes up because we take care of their capital needs. We breed champions." Benowitz has a healthy distrust for technology companies, feeling that what is in today will be out tomorrow, a passing phase. "Maybe my attitude is because, with my eye, I don't really use the computer at all," he quips. Instead, he likes established companies that make an actual product or that offer unique content. One such company is Edgewater,
Inc. The Company farms, processes and markets high-quality, high-value marine species, primarily scallops, with a small sablefish (black cod) hatchery still in its infancy. Edgewater has successfully operated the scallop farming and marine hatchery business for 15 years. Its scallop farms are situated on Vancouver Island, and it is the largest private marine research hatchery as well as the first fully integrated shellfish producer in Canada . Benowitz is also very interested, although extremely cautious, in China and the rest of Asia . "In China, practically every company is a growth company;' he says. "Their infrastructure has been neglected for so long, and now the whole country is exploding with growth . Just about any company- even one that makes water purifiers- is a value stock that can be too attractive to ignore." Vision invested early in China . One of its most successful investments was American Oriental Bioengineering Inc. (AOB), a leading Chinese manufacturer of products in the fields of nutraceuticals and pharmaceuticals. AOB uses proprietary processes to produce soybean protein peptide more efficiently than with traditional extracting techniques. Soybean peptides are used widely in general foods, health foods and medicines, among other applications. Vision recently sent a deal team leader, John Finley, and analysts on yet another of several weeks-long due diligence trips to China to examine companies . "The way we invest, the downside is somewhat mitigated;' Benowitz says. "I mean, if a company earns a certain amount of money, the stock can only go down so much. We're not hedging. That's not what we do. We're old-fashioned investors. That really is what we are. We hedge the market, but we don't hedge any stocks:' That doesn't mean the Vision overpays for growth. Benowitz and Cohen strive to emulate Warren Buffett's investment philosophy. Although the billionaire investor is famous for value investing, less well known is the fact that some of his best investments have been made through PIPE deals. While Buffett plays in mega-giants like Gillette, Vision Capital is focusing on
Vision Capital continued on page 38 WWW. VALUERICHONLINE .COM
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Vision Capital continued from page 36 t he micro-cap and small-cap arenas. Playing Position It's 5 o'clock p.m. and we're walking down Madison Avenue to The Core Club, a very chi-chi new club that has a reputation of inviting the most influential members from a wide variety of backgrounds - especially entertainment movers and shakers. Benowitz, a member, has reserved a spot in a Texas Hold 'em tournament being held in the club's library. "I haven't the slightest idea how I came to be invited to join this club," says Benowitz with a slight smile. My guess is that was just a bit of self-deprecating humor. He probably knows exactly how his name was proposed, because networking is everything in the fund business. Meetings begin with a round of the "I know So-and-so- Hey, so do I" game- a little something like Si x Degrees of Kevin Bacon . Accompanying us is Vision analyst Christopher Wall, who has thrown on a jacket and
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brought plenty of business cards. As we walk into The Core Club, it's obvious that Benowitz is w ell known. The club is very hip and sophisticated. Its !an Schrager-like interior design features a well-curated collection of contemporary art. I could spend several days just perusing the artsy coffee table books lining the library, where the tournament is being held. Benowitz finds his table and is seated across from the dealer before most of the other participants have finished socializing. The tournament begins. There are five elimination tables. The winner of each will progress to the final table. I watch enough poker on TV to know that Benowitz is not getting very many good hands, but he is patiently playing his position very well against the rest of the table. He emerges the victor at his table and progresses to the final table, despite the fact that I've seen him draw only one really good hand. At the final table, he's once again getting poor cards, but he manages to make it to the final two players before his opponent wins the tournament.
Still, he really seemed to enjoy himself. I commiserate with him on the loss and comm ent about his luck. "I guess you noticed I only got one good hand," he says. When I said I thought it was remarkable that he made it to number two considering, Benowitz says, "The tournament ended right . The guy who beat me was the best player here tonigh t." Maybe. The other guy seemed to get plenty of strong hands. I got the impression that all Benowitz would have needed was one more good hand to take the tournament. Which gets me to thinking about comparisons between playing poker and what Benowitz does for emerging companies as a registered investment advisor. You are rarely ever dealt strong hole cards in the micro-cap arena . You'd really have to know the strategy of the game extremely well , know when to fold, play aggressively when your position allows for it, and hold the cards long enough to see them play out. You'd have to stick to your game. If you can do all that consi stently, you'll be at the final table a lot. V R
WWW. VALUERICHONLINE .COM
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Paper Lions The Personality Portraits of Sebastian Kruger By David Willson I am face to face with Fidel Castro. His oily countenance is at once repellant and grandfatherly. His features are too imposing to take in all at once, so my eye forages its way through the jungle of his bea rd to the tangle of his eyebrows- only to be captured by his intense gaze. The black pupil of his eye seductively tries to bend me to its dark will. I struggle to break its hold, only to be recapt ured by an imposing nose. My gaze slides down its monumental, pore-pocked slope to the glistening cave of his mouth . The oracle speaks. Fetid air flows in and out. One step closer and I will smell cigars and rum- in fact, I think I already do. And yet, for all his potency, I am aware that his time is nearly done. His influence is fading into the two-dimensional realm of history- where his actions will be dispassionately analyzed once his physical memory slips away. I feel I know this man more intimately after this brief meeting- a meeting on paper, in an illustration by Sebastian Kruger. Such is the power of Sebastian Kruger's work- to bring personalities alive on paper. The 43-year-old German illustrator has had a career of superlatives, illustrating for many of the high circulation magazines of the world -Rolling Stone, USA Today, Playboy, L'Espresso, Der Spiegel, Stern and others. He has a cult following of artists, writers, musicians and publishers. His, rather expensive, limited edition WWW. VREXPO.NET
annual calendars sell out to devoted fans in advance. His original paintings and limited edition prints are owned by a Who's Who list of rock musicians, movie stars and serious art collectors.
Obsessive Technique Kruger fanatically buries himself into the life's work and ephemera of each subject so that he might channel their essence into the heady mixture of wash, pencil and impasto that are his illustrations. He leaves no stone unturned. For an illustration about Steve McQueen, Kruger referred to his own personal McQueen library. "I have a DVD collection of almost his whole works- movie books and everything," says Kruger. "So I was on the same wavelength with Steve McQueen when I painted him as Carter 'Doc' McCoy in Sam Pekinpah's The Getaway:' Kruger takes all of that background information and uses his prodigious imagination to lose himself in the alternative universe of his subject. " I feel sometimes like an actor," he says. After a day of work in his studio, his wife Andrea will often ask him, "How was your day today?" And he will say something like, "today I was Jimi Hendrix 's shirt." Perhaps it is this obsessive process that enables him to paint his subjects with such honest clarity and vision . Take, for instance, his painting of Laurel and Hardy. What other illustrator would show only the back of their heads? But
as soon as you see it, you know that it is the perfect statement. There they sit - mute and monumental -facing the grey past, an imposing bridge between the theatrical beginnings of the silent film era and modern cinema . Using only their iconographic silhouettes, Kruger takes us tantalizingly close to their bygone era and leaves the rest to our imagination- leading us to supply our own emotional input as to how significant their influence still is today.
Marilyn, Acrylic On Art Board, 39 '12" x 59" SUMMER 2006
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Laurel & Hardy,
Gich~e
On Canvas, 35" x 28"
From Bogart to Branda, John Wayne to Jimi Hendrix, Stallone to Schwarzenegger -each Kruger caricatu re exists on multiple levels; as an illustration, as a visually explosive portrait and as a visual tone poem . This is what makes him more than just a talented caricaturist with great technique- and one of the world's most sought after illustrators. Many of Kruger's caricatures have been recognized as classics in their own right. Kruger has been illustrating professionally for twenty years. He lives and works in a forest near Hanover, Germany, with Andrea, two cats and two Rhodesian Ridgeback dogs. His home is t he oldest forest ranger 's house in Lower Sa xony. "It's a good quiet place to work and be a strange artist;' he chuckles.
if there is a dark half. I like painting people like Vincent Van Gogh, William S. Burroughs, Keith Richards or even Marilyn Monroe. These people are very special to me. I feel very close to them . I'm very bored with all these entertainers with white teeth -where everybody is in good health and is so
nice- I kind of don't like it! " he laughs. "Every now and then I see a movie or a photo that stops me and I say, ' Yeah, this is what I have to do next ' ... Willie Nelson, Chris Kristopherson , Burton and Taylor together maybe. This is what I am interested in." And then there are the Rolling Stones. Kruger has made a personal project out of the Rolling Stones. Entire books, calendars and fine art print editions have been published on Kruger's Rolling Stones work alone. He has traveled with the band and become close friends with Keith Richards and Ronnie Wood, who is an accomplished artist in his own right. "I always liked the idea of being a musician, but there is just space for one big thing in my brain," says Kruger. "So I had to make that decision. I am a painter. When I hang out with Keith or Ronnie, I sometimes feel like I am a musician, too- but without an instrument:' Once when Kruger visited Wood at his home and art studio, they got to playing with some sunglasses and put them on Wood 's dog Chanel. They thought Chanel probably would shake them off right away. Instead the dog got into it, kept the glasses on and even wouldn't let them take them off later. The episode turned into a late night photo session and eventually ended up
Intense Insight
When he calls himself a "strange artist," he is quite possibly referring to the disturbing elements that appear in his work- jarring distortions, dark or kinky humor and a frequent single eye that seems to exist in another dimension. The single eye often glows with primitive hunger, rage and sex- an id eye. "I like the dark side of people's character," Kruger says in English that, while halting, is easier on the ears than Schwarzenegger's. "Or I like to find out 42
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Keith Pointing,
Gich~e
on Canvas, 39" x 29" WWW. VALUERICHONLINE .COM
40 x 40 Suite, Giclee On Canvas, 16" x 41" each
as a Kruger painting entitled Chane/. Kruger also has a special affinity for Richards . They get together on an annual basis. "Every time I see him I think he has grown a new wrinkle," he laughs.
"Whenever I do a painting of Keith, the more I go realistic with it, the closer I come to his real character," muses Kruger. "Jagger is very easy to draw or paint as a caricature, or a little more exaggerated. It doesn't matter. It won't bring me away from his character. But in the case of Keith , I have found that there is a problem unless I do it realistically:'
Success in America
Chane/, Giclee On Canvas, 29" x 39"
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Sebastian Kruger's limited edition prints and originals have only been offered in American galleries for about si x months, but with phenomenal success. Danny Stern of the Limelight Agency, Kruger's American representatives, says he's never seen anything like it. "His editions sell very quickly. They outstrip even Warhol and Haring;' Stern says. Dewey Graff of Dewey Graff Fine Arts, Inc., further attests to the popularity of Kruger's work and the quality of the Giclee editions. "I ran an ad for the Rolling Stones 40 X 40 suite by Kruger in the Robb Report," says Graff. "Ninety percent of the people that called in from the ad
actually ended up purchasing the suiteand almost all of my customers who have purchased it have called me again to say, ' I can't believe how good they look."' According to Stern at Limelight, half of the four-paneled 40 X 40 edition sold out within the first two months of its release. The price for the remaining copies quickly jumped from $6,500 to $9,500. When original paintings are available, they can bring si x figure prices. Kruger's painting of Keith Richards entitled Captain Keith recently sold for $125 ,000. Limelight is currently planning an American tour for Kruger that will take place sometime in the fall of 2006. The tour will include galleries in New York, Los Angeles and San Francisco, with possible appearances in Maui, Scottsdale and other locations. Kruger's limited edition prints are selected and reproduced from popular commissioned work, and the 40 X 40 suite was no exception. "A client asked me to do a group portrait of the Rolling Stones. And he said make it big and kind of realistic, maybe exaggerated WWW. VALUERICHONLINE .COM
but in a realistic style," explains Kruger. "I looked for group photos, where all four were together in one picture, and started an ordinary group portrait. "But then I became bored with it, because it was simply too ordinary. Whatever I do when painting the Stones must be a challenge . So I broke it up and started over as a montage, with every single Stone in a different atmosphere: Charlie is somewhere on the road, Mick is in the photo studio, Keith is on stage and Ronnie is in his garden. They all have different characters, so every Stone got their own space. I thought it was a good idea. People think of it as four paintings, but it's really one complete work:' The Luxury of Fame When asked how he feels about the incredible early acceptance of his work in America, Kruger says, " It makes me very happy. But all I do is try to be as honest as possible with my paintings. I don't have to change my way of working just for success. I wouldn't like that. "I am in a posit ion now where I can do what I call 'my real work' and be successful with i t - and this is great," he says. "I quit doing commissions in Germany, caricatures and illustrations, because I did it for a very long time and it made me very unhappy to discuss details with so-called art directors who were even younger than me and thought they knew a lot about my work, and faces and stuff. "I want to depart sometimes from just doing portraits of celebrities," continues Kruger. "I found some old photos of me when I was a little boy playing with my toys while I was being watched by my father. I found these pictures very interesting. I got some ideas to work with them immediately. It's not necessary that people know the little boy in the painting is me:' He laughs, "It will be fun to paint a little boy and know that it's myself." When we spoke with him, Kruger was putting the finishing touches on the cover painting for a book of poetry by British publishing mega-mogul Felix Dennis. The commission originally was for doing the interior illustrations for the book, but evolved into the cover art as well. A commissioned painting of Slash, the guitarist from Guns N' Roses- another musician fr iend WWW VREXPO .NET
Sebastian Kruger working on Captain Keith in his studio.
-was slated to go on his easel next. Though the focus of his career may be shifting away from mundane commercial illustration to a more sophisticated art customer, Kruger remains booked well in advance. It
appears that there will be plenty of new work coming to satisfy his many fans in Europe, and now America. VR www.limelightagency.com www.deweygfa.com SUMMER 2006
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n.Spiration
LivingScu pture By David Willson As a boy, sculptor Kevin Robb spent his summers on his grandfather's rural Colorado farm. One day his grandfather handed him an acetylene torch and said, "Try this. This is welding:' Kevin saw wonderful shapes in the metal scraps around the farm and beg an welding what he would later call "found object art." Today, the 52-year-old artist is known for hi s ability to translate bronze and stainless steel into shapes that seem
Cuadras Locas, Stainless Steel, height: 8' 8" WWW.VREXPO .NET
to float effortlessly and sweep through the air in a lively dance. Larger than life, these arabesques range in height from 8 to 20 feet and are usually commissioned by people in their mid50s for second homes that are typically worth more than a million dollars. Ironically, when Robb's studio initially focused on corporate art, they found that executives were buying the work for themselves rather than their corporations. Today, however, Robb's sculptures can be found in both public and corporate venues. Robb never sketches a design . Instead, he works directly with the metal, placing pieces in shapes and relationships that evolve. As a result, the technology behind Robb's sophisticated metalworking never takes precedence. His unfettered imagination, tempered with nearly 30 years of hands-on experience, brings a unique liveliness to the monumental forms. In January 2004, Robb suffered a stroke that left him on life support for 13 days and in rehabilit ation hospitals for seven weeks. Immobility for a sculptor, especially one with such a direct method of working metal, was like a singer losing his voice or a photographer losing his sight. But Robb has made a miraculous recovery. Speech-impaired and without the use of his right arm, he is in the studio every day with a team of welders, communicating with gestures and facial expressions on every cut, twist
and weld of the metal. Despite the physical obstacles, Robb directs and inspects every aspect of each sculpture and if something is not right, it is done and redone until it is unmistakably a "Kevin Robb piece." A commissioned sculpture from Kevin Robb Studios ranges from $15,000 to $125,000 and takes roughly ten weeks to complete.
www.kevinrobb.com
Bella Danza, Stainless Steel, height: 17' 6" SUMMER 2006
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In the tradition of the Japanese ryokan, Ten Thousand Waves' guests are able to stay overnight in the Houses of the Moon, just a short walk from the spa.
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x.Peditions
Santa Fe, New Mexico Experience Ten Thousand Waves of Pleasure By Kayla Willson
Ascending the landscaped paths and undulating wood staircase up the mountainside on the way to Ten Thousand Waves, you are surrounded by windswept pines and flowering bushes that give the New Mexican environment a Japanese aura. You are gently filled with a calming spirit. At the top of the stairs, you enter the building and are greeted by waterfalls, hanging orchids and large koi swimming in the indoor ponds. Your senses are awakened by natural wood surroundings, Japanese-style gardens bathed in filtered sunlight, herbal scents and the soothing sounds of water. Set in the mountains less than 10 minutes from the historic plaza in Santa Fe, New Mexico, and bordering the national forest, Ten Thousand Waves has created an atmosphere of tranquility, relaxation and authenticity in the tradition of Japanese baths and spas for locals and tourists for over 25 years. When the spa opened in 1981, it offered eight outdoor hot tubs, one small massage room and a lobby with a changing room . Today, you can choose from nine communal and private bath/ sauna combinations, 20 tables for massage, spa treatments and facials, and even stay overnight in one of the Japanese-style lodgings. The small lobby area, where spa guests check in and receive their robes and slippers, features a gift shop stocked with carefully selected lotions and hair and skin products, including Ten Thousand Waves' own line of spa products. WWW. VREXPO .N ET
Adding to the Japanese ambience is an eclectic assortment of unique Japanese gifts, toys and knickknacks along with authentic teapots, sake cups, bowls and chopsticks. Books and videotapes
include everything from coffee table books on Japanese culture to Japanese manga, and even include a couple of waterproof "Aqua" erotica anthologies perfect for reading at the baths.
Authentic landscaping and architecture give a true Japanese experience. SUMM ER 2006
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Guests choose from ten communal and private hot baths, such as the Kojiro tub (top left) and the Imperial Ofuro tub (above).
While you wait for your treatment or massage, you may sip complimentary tea or water freshened with slices of cucumbers, oranges or lemons. The more t han 125 certified therapists on staff at Ten Thousand Waves are carefully selected from one of t he largest communities of massage therapists and alternative healers in the world . Recently singled o ut by Conde Nast Traveler readers as one of their top four destination spa choices, the Waves scored particularly high marks for its specialized treatments and exotic setting s. The Pagodas are the most lu xurious treatment environments in the spa. You may also choose a private, double or th e t reetop grou p room, a large, airy semiprivate room divided by screens for visual privacy. The Waves is equally renowned for it s hot w ater environments. Guests may re nt a private tub set on a pinon-juniper hillside with views of the high mountain s, o r choose a communal tub for mi xed bathing or a communal women -only tub. Both of the communal tubs have a large 50
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tub, cold plunge, sauna and sunning deck. Bathing is clothing optional, except after 8:15 p.m. in the mixed-bathing tub. All tubs are open to the sky except Imperial Ofuro, a premium private bathing suite that can accommodate 10. High Desert Oasis In our recent ValueRich interview at the Waves, Duke Klauck, founder and president, captivated me with his passion for Japanese culture and hot springs as I sat entranced by the gardens and waterfall in the serene courtyard where we spoke. Klauck visits Japan six to seven weeks a year and continues to bring back new ideas for creating a unique mi x of Japanese bathing and hydrotherapy, and specialized massage and body treatments . Today, Ten Thousand Waves is a Santa Fe institution known the world over. But that hasn't always been the case, according to Klauck. When the Japanese bathhouse opened in 1981, the local residents gave him a lot of funny looks
and worse. One of his neighbors didn't like the idea of a "hippie bathhouse" nearby, so he built a pigpen si x feet away from one of the private tubs and stocked it with 12 pigs. News of the feud soon hit the media and photos appeared in the local papers, giving rise to editorial cartoons and letters. As a result, the Waves inadvertently received a great deal of publicity. In fact, Klauck says, people still ask, "Where are the pigs?" Klauck's original idea was to build a Japanese bathhouse to create an authentic Japanese experience, rarely found in the U.S., focusing on the benefits of hot water and its permutations. One of the carpenters, however, offered to convert an empty basement room into a massage room and offered Klauck a proposition that he couldn't turn down . He would convert the room into a massage room at no charge, under two conditions: (1) If massage became popular, he would be paid for his work, and (2) he would be hired as the Waves' first massage therapist. WWW. VALUERICHONLINE .COM
The Waterfall tub is the closest thing to bathing in a wild hot spring in the woods.
The deal worked . The carpenter was an extremely skilled masseur and the massage program took off. In fact, massage and spa treatments are now 60 percent of the company 's business. Specialized massage treatments that the Waves is renowned for include "Four Hands, One Heart;' where two therapists work in unison on one person for the ultimate massage experience, and the " Flowing River Stone Massage," a fullbody massage using over 50 hot river and cold marble stones positioned to increase circulation, augm ented by a hot
oil stone massage for deep rela xation . Philosophy of Fun
According to Klauck, Americans have always treated spas as places to get something done, such as to lose weight or stop smoking . "If you go to Canyon Ranch, you'll see hundreds of Type A movers and shakers walking around ticking off their li st of activities on a schedule," says Klauck with an amused look on his face. "They try to pack all their healthy living into one week. After a few days of non stop hiking,
yoga and exercise, you see these guys walking around like this [he does an imitation of a penguin walk with his arms held akimbo], they 're so sore. "Europeans believe spas are places to go if you 're sick. You often need a prescription . The Scandinavians go to spas to get warm," Klauck adds. "The Japanese, however, go to their traditional spas - onsen and sento- to have a good time in a beautiful place. While they use hot water to achieve the same goals as Americans and Europeans, bathing is mo stly about winding dow n from the day, meeting friends, tak ing time off with the family, and rela xing . The health benefits are bonuses." Houses of the Moon
The Four Hands, One Heart Massage is a Ten Thousand Waves signature treatment. WWW. VREXPO .NET
After a day of treating your body and mind to a sensuous reawakeni ng of health and vitality, you have the option of staying in one of the Hou ses of the Moon, 12 unique Japanese style rooms and, believe it or not, an Airstream trailer. Most rooms combine SUMMER 2006
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Each of the Houses of the Moon offer unique amenities with a blend of Japanese and New Mexican sensibilities for a comfortable and relaxing stay.
traditional Japanese style with Santa Fe adobe "ca sita" architecture. However, you may also choose the Sailor Moon room- trendy, modern Tokyo-style digs flush with multimedia gadgets and prop s such as remote co ntrol-operated star field lighting ove r a built-i n tokonom a lounging area - not to ment ion a Japanese toilet with an electrically heated seat! Nam ed after a po pul ar Jap anese ma nga character, the Sa ilor Moon is a prototype fo r upcoming Wave s lodg ing and housing expansion using modern construct ion techniques imported from Japan. Even as the spa has g rown and continues to expand, Klauck is adamant about maintaining his vision and strong commitment to keeping the Waves a 52
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"real " place where people can socialize while enjoying health benefits, vitality, energy and serenity to body and soul. Klauck is careful to distinguish the Waves from other American spas. "We were an early proponent of hydrotherapy- way ahead of our time," says Klauck. "The spa industry in the U.S. has experienced rapid growth in the last five years, but that is now leveling off- except for hydrotherapy fac ilities. More and more spas are moving to water therapy, something the Waves has done since its inception:' Klauck has exciting plans and visions for the spa in the next few years, including renovating and expanding several bathing tubs and constructing additional hotel rooms, a 2,000-squarefoot meeting space and a restaurant. But
he is quick to add that these will all be built with g reat attention to authentic Japanese culture . The restaurant will not be a typical Japanese restaurant as most of us know it. It will be an izakaya, a Japanese neighborhood pub, with indigenous dishes rarely seen in America and a variety of fine sakes served cold . Klauck laughingly says that the only sake that should be served hot is really bad sake, to deaden the taste. For a truly memorable Japanese spa experience without going to Japan, visit Ten Thousand Waves in Santa Fe. Since the Waves is on the road to the Santa Fe ski mountain, you may just have to combine it with a skiing trip this winter. VR
www.tenthousandwaves.com WWW.VALUERICHONLINE .COM
"Pieces of Sushi" Stainless Steel 76" x 27" x 22" on 6" base
â&#x20AC;˘ kevinrobb.com
The Wynn's luxurious poolside cabanas offer the ambience of the Italian Riviera as a respite from the Las Vegas Strip.
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YNN
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Splendid to the Smallest Detail By Kayla Willson
Close your eyes and imagine waterfalls, sparkling lagoons, flowering topiary globes gently pierced with beams of natural sunlight. Envision lush pine forest carpeting on an undulating mountain landscape. You are surrounded by beauty and experience a sense of lu xurious tranquility. You have discovered an oasis from the frenetic outside world . You have found the Wynn Las Vegas. Steve Wynn , the man who brought Las Vegas back from the brink of seediness with one lu xurious resort after another (Bellagio, Mirage, Treasure Island), now offers a different kind of Vegas experience for guests: a 217-acre paradise that melds nature and lu xury. The $2.7 billion Wynn Las Vegas, open since April 2005, is located on the Las Vegas Strip, just like his previous grand hotels. But this one separates itself phys ically and philosophically from the others. Wynn's previous extravaganzas were designed to impress pedestrians along the Strip with dramatic erupting volcanoes and mystical dancing fountains. Though no less spectacular, the Wynn Las Vegas caters more to its guests. True to Steve Wynn's well-established reputation, it provides a luxurious "wow " factor, with touches beyond any other Vegas hotel to date. But it also offers a secluded, tranquil environment of WWW. VREXPO .NET
solace, subtly oozing with sophistication and style down to the last detail. The boldest statement of this hotel 's difference is the 140-foot-high mountain covered with a landscape of trees,
plants and waterfalls that separates and buffers the resort from the gaudy lights and noise of the Strip. Huge imported trees weighing a total of nearly 400,000 pounds made the mountain as heavy as
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Colorful hanging lanterns dominate the Wynn's sunlit entrance drawing guests into the shopping and restaurant areas.
a 90-story building. But no matter what engineering challenges Wynn faced, he was determined to merge nature w ith opulence and treat his guests to a truly extraordinary Vega s experience. Walk into most Vegas hotels along the Strip and before you find anything resembling a hotel lobby or elevators to guest rooms, you must traverse a maze of slot machines and gambling t ables for such a distance that you'll wish you were wearing your hiking shoes . Not at the Wynn, where you are greeted by a conservatory filled with colorful flowering topiary globes hanging from trees th at rea ch nearly to the ceiling . Check-in takes place just inside the doors. Elevators to the guest rooms are just a few feet away. The usual "day is no different from night" feel of many Vegas hotels is absent in the Wynn, where sunlight beams through skylights throughout and alfresco seating is available at nea rly all of its restaurants. No place is 56
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this more evident than in the Parasol Lounges (Parasol Up and Parasol Down), located in the hotel's lobby. Walk anywhere in this resort, and you are surrounded by plants and flowers, even when " Wynn-dow " shopping in its 30 exclusive international boutiques. Architecturally, the Wynn Las Vegas is a composition of undulating shapes, curves and colors. Curving architecture happens to be the most expensive to build, one reason for the hotel's astronomical price tag. But curves, Wynn believes, convey motion, movement and excitement. So at his new hotel, you will ride up and down huge curved escalators and feast your eyes on fluid design throughout the resort. The Wynn Las Vegas is not about gambling. Its well-appointed casino, unique to Vegas in that the smell of fresh flowers surrounds you , is actually just another hotel amenity. If anything, the Wynn is about the great outdoors. The enormous pool complex, located directly
behind the hotel, is where much of the action is. The bar adjacent to the pool is complete with blackjack tables, so you can still try your luck while enjoying the sun and water. Cabanas, reminiscent of romantic Venetian porticos, overlook the pools and their connecting canal. Nearby, you' ll find a spa with 45 treatment rooms and an exclusive clublike atmosphere that extends even into locker rooms. A typical day at the Wynn might include a round of golf with a pro on the 18-hole Wynn Golf Course -the only course on the Strip attached to a hotel - and rela xing by the pool or pampering yourself in the spa . It's a far cry from the cabin fever-inducing experience of the other Vegas hotels. Okay, all this talk about serenity and calm might sound a bit too rela xing and peaceful ; after all. this is Vegas! It's all about excitement, mystery, fantasy and dreams, right? Well, you don't have to go far to enter the fantasy world of Le Reve: A Small Collection of Imperfect WWW. VALUERICHONLINE .COM
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The pool and Cabana bar are the main gathering places for guests at the Wynn.
Curvilinear forms, an exquisite outdoor experience and an 18-hole signature golf course set the Wynn Las Vegas apart from other hotels on the Strip.
Dreams at the Wynn's theater, another one-of-a-kind Wynn creation. He built the only theater in the round on the Strip as the home for this Franco Dragone (formerly of Cirque du Solei I) creation . Le Reve will transport you into an unprecedented world of imagination, played out in, and over, a spectacular fountain of water instead of a stage. For sports gamblers, excitement takes the form of the Wynn Sports Book. The large high-tech facility WWW. VREXPO .N ET
looks like a combination of an upscale gentlemen's club, the floor of the New York Stock Exchange and the NORAD command center. And high-performance car buffs will find the Wynn-Penski FerrariMaserati dealership, showcasing some of the hottest vehicles of the world, pretty exciting. True to his reputation, Steve Wynn recruited world-renowned chefs for each Wynn Las Vegas dining establishment.
Unlike many other Vegas marquee name restaurants, Wynn insisted that all chefs relocate to Vegas and personally run their operations. The only chef exempted from this requirement is Daniel Boulud of Daniel Boulud Brasserie. You can top dinner off at Chocolat with a handmade European chocolate truffle or petits gateaux. Then dance it off at Trysts nightclub, a celebrity magnet that moves to the sensuous rhythm of light and sound . Ultimately, SUMMER 2006
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Franco Dragone's Le Reve, in its specially built theater at the Wynn, is the hottest ticket in Vegas.
you will wind up, or wind down, in f ine European linens and bedding -watching or not watching the highdefinition flat-screen TV, a standard amenity in every Wynn room. Wynn Las Vegas suites reset the bar for lu xury
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in Las Vegas. The larger ones include private massage rooms for those who require that extra dose of pampering . A classy adult playground away from the hectic pace of the Strip, the Wynn offers a serene getaway filled
with the ultimate in luxury and plenty of excitement. The resort is a personal statement by Steve Wynn and his wife and collaborator, Elaine. Gaze up at the awesome 50-story curved megahotel and you will see the 60-foot-long Wynn signature scrawled across the top, punctuated with a period . With the Wynn Macao and Encore, a $1.74 billion, 2,054-room full-scale resort next door already under construction, the punctuation is obviously not a symbol of finality for his creations. Think of it merely as a bold statement: "This place is something else- period!" VR
www.wynnlasvegas.com
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Inside Micro-cap Finance
On their best day, investment banks that focus on the micro-cap segment are revered. Given the right opportunity, they can generate extremely lucrative returns and endear themselves to clients by playing a pivotal role in a company's success. On their worst day, however, these same banks face an uphill battle to locate attractive prospects, negotiate the industry's competitive environment and overcome a list of challenges plaguing the micro-cap segment. We see the end result in the form of tombstone ads and press releases, but rarely consider the behind-the-scenes
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work it takes to post even one check in the win column. For an insider's perspective, four successful firms discuss their thoughts on the industry pros and cons and what they would change if they ruled the investment world . Opportunity Knocks "Bigger is better" seems to be an underlying theme in a variety of industries. Investment banking is no exception . Firms are hot to hook the big fish. After all, the big fish should translate into a heartier meal. The problem? Everyone is wise to the proposition. As a result, the waters
are overcrowded with those fishing for the biggest deals from the biggest companies. This overpopulation in one pond sets the stage for a strategic opportunity in another. "Everybody wants to move up the food chain. What that always does is create a void;' says Bruce Jordan, president of Midtown Partners & Co., LLC. "It creates a need to be served in the micro-cap space for those looking to fund deals that are below $25 million and even more of a void for those who focus on deals under $10 million." Midtown is one of the boutique firms poised to capitalize on this WWW. VALUERICHONLINE .COM
micro-cap void. With offices in New York and Florida, the Firm specializes in private transactions, the majority of which are PIPE (private investment in public equity) deals. The Firm's business has been aided by the difficulties small companies currently face in the traditionaiiPO market. By privately negotiating sales of its securities to individual accredited investors or institutional funds, micro-caps can obtain capital from a PIPE transaction faster and cheaper than in a public offering. Midtown has borne witness to the product's popularity. With a team of only 12, the Firm has completed 25 PIPEs in the past 18 months. In addition to being neglected, microcaps are also inherently needy. While it doesn't sound like a selling feature, some firms are drawn to the challenge of digging in and getting their hands dirty. "We like the challenge;' says Vicki Barone, a senior managing partner at Bathgate Capital Partners LLC. "We like seeing a company go from its infancy trading on the OTC Bulletin Board to trading on NASDAQ and sometimes on to bigger exchanges. It's rewarding to see these companies succeed and to be a part of their success." With 20 of its 65 registered professionals focusing on investment banking and corporate finance, Bathgate targets high-growth microcap companies. The Firm specializes in providing early capital to public companies or those they feel they can help get public. Bathgate's people have professional backgrounds in a variety of fields, allowing the firm to avoid industry specificity and post deals in a multitude of industries, including everything from oil / gas to high tech to biomed . At the end of the day, however, capitalizing on opportunity and becoming involved would be pointless without profits. Despite the smaller market capitalization, deals involving micro-cap companies have the potential for substantial returns. Successfully realizing the profit potential is where the skill comes in. "The fun part about dealing with micro-cap companies is that the upside is so great. If you catch the right WWW. VREXPO .NET
deal at the right time, your investors -and, in turn, your client- can do really well," says Steven Pollan, CEO of Atlas Capital Services, LLC. This win -win proposition is fundamental to Atlas, which prides itself on being a relationship -oriented boutique investment bank. The Firm focuses on a maximum of four to six companies a year, doing roughly 15 transactions with them over the 12-month period. Capabilities range from capital raising and M&A to a full range of advisory services .
If It Were Easy, Everybody Would Do It Despite the upside, investment banking for micro-caps is not without its share of challenges . Some might say it has more than most. While the neediness of microcaps is a selling point, it is also a hindrance. Sophistication typically comes with size. Micro-caps are often like a promising pitcher not quite ready for the major leagues. "There's always some element to a micro-cap company which isn't quite where you need it to be to move it to the next level," says Barone. This limitation, anything from management to product development, necessitates additional work and time commitment on the part of investment partners. Barone claims that a common problem for micro-caps is the inability of a company's founder to recognize his or her limitations. Their emotional investment makes it difficult for them to accept changes despite the potential for financial return. After a lot of discussion and hand -holding, it is often the reality of public market valuation that sells the idea. "If they would really stop and think about the prospect of the business growing, then suddenly their piece of the pie, despite it being a smaller piece of the pie, can be worth ten times as much," she says. "If you take two companies, one public and one private, and compare them side by side, the public company has a higher valuation. This means its owners and shareholders have more value, and it's liquid." On the opposite side of the coin,
some micro-caps are too eager to make a move, causing a wealth of problems from a structural point of view. "Many small companies rush to go public in order to raise financing without focusing on structure and having the right people in place to worry about what's important in terms of structuring a company that's right for public markets;' says Pollan . According to Glen Torregiani, a vice president at Atlas, this desire for funding can result in another misstep by micro-caps. "One of the challenges we face is when a small cap company thinks their best avenue to funding is to try and get as many banks on board as possible and get the word out to as many people as possible;'Torregiani says. "As a result, you have banks tripping over each other and the wrong bank contacting too many funds. When the right bank comes in, who has the relationship and knows how to structure the deal, they find that it's already been put in front of too many players and hasn't been presented well." Banks aren't the only ones microcaps need to impress. Losing sight of investor needs can be detrimental. Years ago, investors could be sold on big ideas from micro-caps. However, as the segment became known for its failures rather than its successes, investors became more discerning. They began to look at the essence of a company and its ability to build assets rather than being enamored with its story. "Investors are becoming more fundamentally oriented, which means the entrepreneurs of the companies have to think that way," claims Jordan. This issue is complicated by the limited pool of investors available. "You don't have as many investors out there that are willing to take a chance on a $50 million market cap company as you do on a $500 million market cap company, so your universe of potential investors is a little bit smaller," says Mike McCrory, CEO of 1-Bankers Securities Inc. "They tend to be less liquid, so you have to work really hard at making sure you provide liquidity with proper exposure:' With offices in Switzerland, London and Milan, as well as New York and Dallas, SUMMER 2006
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!-Bankers brings a focus on institutional distribution in Europe to U.S. small-cap deals. This differentiating factor has led to the Firm being on the cover of over 50 transactions since it was founded in 1996. A Competitive Minefield
The investment banking world is full of stories, some of which aren't pretty. Intense competition among the larger firms has been known to result in intense battles and occasional bloodshed . The micro-cap segment, however, seems awash with more cooperation . "I know that some of our bankers who have worked in the bigger-tier firms are amazed when they start working with micro-cap companies and see how we work together with other banking firms to make the transaction happen," says Barone. Before you envision an industry permeated with group hugs and the strains of"Kumbaya," it's important to note that micro-cap investment banking is not always a rose-colored world. "To be very matter-of-fact about it, everybody wants to do all the deals all by themselves. That's everybody 's goal. What drives our business is fear and g reed and greed and greed. Everybody wants to make as much money as they can, so they have the tendency to want to monopolize deals," says Jordan. He points out, however, that g reed is ultimately ineffective. "What's important is getting the engagement done rather than doing the whole thing yourself:' It's not clear if everyone subscribes to the necessity for cooperation . Seasoned players understand the importance of maintaining a realistic and cautious perspective of the industry. "Some of the friends that we have on the street we consider true and close fr iends and some of them you keep a little more at arm's length;' says McCrory. If I Ruled the World
Given the opportunity to change the world they're working in, micro-cap investment banks have more than a few suggestions. "Taking advantage of unsophisticated companies that need help in certain 62
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areas and not really listening to their needs is a big issue," says Pollan . "A lot of deals that I see get done are at the expense of the company rather than to the benefit of the company in terms of pricing, structure and many other things. "It's like any other business. Some people have a long-term approach and some have a short-term approach. Usually those with a long-term approach make less money in the short term but stay around in the long term ." Barone's wish centers on the perfect micro-cap team . "If I could come in and have a solid management team right from the start, it would make the transaction a lot smoother;' she says. "Also, having a strong SEC counsel and a strong auditor are absolutely imperative in this marketplace with Sarbanes-Oxley:' For Jordan, it's the generalizations about micro-caps that he'd most like to get rid of. "For every success story, there are more failure stories;' he says. "So it gets looked at by some people with a
bad eye because this is where all the people who can't really do anything are involved . That 's not really the case. "There's a lack of understanding about what's happening here, and in my opinion some of the great companies of the next one or two decades are going to emerge from this space:' With all the inherent challenges and no guarantee of rewards, microcap investment banking isn't always a glorious business. For those involved, however, the success stories make it worthwhile. I guess it all depends on whether you're a glass-half-empty or a glass-half-full kind of person and how hard you're willing to work. VR Atlas Capital Services, LLC www.atlascs.com Bathgate Capital Partners LLC www.bathgatepartners.com 1-Bankers Securities Inc. www.i-bankers.net Midtown Partners & Co., LLC www.midtownpartners.com
The four firms speak to the value they believe VALUE RICH brings to the micro-cap market. "I think that ValueRich brings a new dimension that was lacking to the intermediation between the different aspects that surround the small-cap world . It's a good forum, and we see exposure through ValueRich to issuers, to other banks and to vendors that service both sides of the business:' - Mike McCrory, CEO, /-Bankers Securities Inc. "This is a face-to-face business. As sophisticated as we all are with technology, as much as we all use our e-mails and our phones, I can tell you that once you meet people face-to-face, transactions become easier." -
Vicki Barone, Senior Managing Partner, Bathgate Capital Partners LLC
"It creates more awareness, and that 's what we're always seeking . The more people who know about us, know about you, know about the activity that is occurring , hopefully it leads to more business for everyone." - Bruce Jordan, President, Midtown Partners & Co., LLC "Anything that's done for these companies to get better exposure and have the market understand who they are and what they do is a very positive thing if it 's done right:'- Steven Pollan, CEO, Atlas Capital Services, LLC
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The best Las Vegas has to offer
We selected the
Wynn Las Vegas Resort for the ValueRich Small-cap Financial Expo after a great deal of consideration. We looked at all the
best meeting hotels on the Strip and none of them came close to comparing to the Wynn. It is simply the most elegant and meeting-friendly resort in Las Vegas. The Wynn's attention to detail is astounding. The staff is the best on the Strip. It has the best of everything, restaurants, lounges, shows and shopping. Our Las Vegas Expo has a great convention rate at the Wynn, and will bring a thousand Wall Street financial professionals and 50 emerging companies- what else could you ask for?
Where money and ideas connect we believe making friends is the most important ingredient for creating a good deal. It's one reason why we have large lounge areas at the expo and throw exciting parties at night. Call or e-mai l to find out about our social plans for Vegas. 64
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'As a Platinum Sponsor, the recent ValueRich Miami Expo was a huge success for us. Candidly, the first day of the conference was the best new relationship-building day we've ever had as a company.
Exhibiting companies get*: • 10' X 10' hard wall executive style Expo suite with conference table, chairs and signage • One 5-minute Lightning Round presentation in front of the General Assembly with audio webcast • One 25-minute breakout financial presentation including audio visual services and audio/powerpoint Web cast • Full-page company financial profile in the Expo Guide by Harbinger Research, distributed to thousands of financial professionals • The ability to showcase and demonstrate company products and services in an expo format for
We made over 30 new 'real' business contacts in just seven hourssome of which have already yielded new partnerships and clients."
Brian R. Connell, CFA Chief Executive Officer, Harbinger Research, LLC
"It was a "professional life-altering" experience. I made more key business contacts in two days than I made in the last five years ..."
Hank Gracin, Partner Lehman & Eilen LLP
"The greatest compliment that I can give you is to bring more business your way. My Boutique Consulting firm presented one of my client companies during the Miami Expo. My Firm has already committed three companies for the Las Vegas ValueRich Expo and may bring a fourth client as well."
James M . Farinella Integrated Capital Systems
two days • Four full-access conference registrations • Company description and financial goals in the ValueRich Marketplace online and in front of 58,000 readers in ValueRich magazine • Unrestricted 828 networking for two days *Standard Exhibiting Company Package : $9,000. High visi bility sponso rships are available, includin g direct mai l and periodical brand ing in our pu blicat ions.
Call or e-mail for information:
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SMALL-CAP FINANCIAL EXPO
"Onstream Media has had the honor and privilege to sponsor, webcast and present at the past three ValueRich events ... The quantity of leads for both our services as well as our stock has been very impressive. Any small cap company would be remiss if they did not exhibit and present at the ValueRich conferences."
Randy Selman CEO, Onstream Media (ONSM)
"My compliments to you and your staff for a job well done ... The attention to detail, the courteousness of the ValueRich staff, and the overall positive atmosphere of the conference made it a most enjoyable experience for the Maxim Group team."
John Garrity Director Sales & Marketing, Maxim Group
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lncrediMail Inc. {MAIL:NasdaqSC) Biophan Technologies, Inc. (BIPH: OTCBB) Ele ro Energy, Inc. (EEEI:NasdaqSC)
Ca ll Va lu eR ich at 561-832-8878 to in qu ire abo ut havin g a sm all -ca p pub li c co m pa ny fea t ured in Company Con nect.
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Today's consumers have utilitarian demands, but never let it be said that they've forgotten how to have fun. Just ask anyone who is alerted to incoming cell phone calls by 50 Cent's "Candy Shop:' With $1 .9 million sales, Fiddy's tune was the most downloaded ringtone of 2005, helping fuel a $600 million market. Offering little beyond entertainment value, ringtones are evidence that fun still has a place in our hearts and securely in our wallets. Software provider lncrediMail Ltd . (NASDAQ: MAIL) is capitalizing on this fun-loving side of consumers with an integrated suite of customized and entertaining software targeting another modern-day addiction : e-mail. With an estimated 1.1 billion e-mail users worldwide, the Company has discovered its own candy shop, one full of endless opportunities and potential for growth . Without Hollywood director Brian De Palma, there is a chance that lncrediMail wou ldn't be in existence today. In an interesting case of life imitating art, the idea for the Company was born in a darkened theater as Isra eli stockbroker Ofer Adler watched the 1996 blockbuster "Mission Impossible," directed by De Palma. In order to intensify the excitement in a scene where two characters are exchanging e-mail, the director added futuristic elements and graphics, with messages folding up into envelopes and unique notification other than the standard "You've got mail " robotic voice. Intrigued by the concept and an xious to employ some of the techniques in his own correspondence, Adler scoured the Internet for products that would give him these capabilities. He was surprised to discover that there was nothing like it on the market, so he decided to take matters into his own hands and create the necessary software. Founded in 1999 by Ofer and his cousin Varon Adler, lncrediMail is now offering its thirdgeneration product that has been downloaded by 70 million people in
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VALUERICH MAGAZIN E
lncrediMail has been downloaded by 70 million people in over 100 countries •1n n1ne • languages
over 100 countries in nine language s. lncrediMail 's software offers users an interactive and highly personalized e-mail experience in stark co ntrast with traditional email. The product 's goal is to create a uniquely entertaining multimedia experience. With lncrediMail Xe, the Company 's flagship product, users can personalize their messages by applying creative features in cluding letter backgrounds, e-mail notifiers (animated indications that mail has been received), 3-D effects, emoticons, sound effects and handwritten signatures. An an imated butler politely announces the receipt of mail. Users can choose from animated emoticons depicting every possible emotion to include within their message. The message changes into a 3-D helicopter or sailboat when it is sent. lncrediMail's approach- offering WWW. VALUERICHONLINE .COM
user-friendly, innovative and fun software- is what differentiates us from our competition," says Varon Adler, lncrediMail's CEO. "Our software doesn't just offer a service, it makes computer use enjoyable." Jeff Holzmann, executive vice president, echoes that sentiment. " We're uniquely focused on entertainment;' he says. "We're about making e-mail a fun, interesting, enticing experience:' While the number of options available is significant, a particularly attractive feature for potential users is what they won't find in lncrediMail products. Since its inception, the Company has been focused on maintaining user friendliness with an absence of adware, spyware or pop-ups. These intrusive elements serve as the bread and butter for the revenue models of many competitors in the software field . In lncrediMail's case, they are unwelcome product features that Management feels will lower customer satisfaction and discourage users from utilizing and ultimately purchasing the Company's products. lncrediMail has opted to generate its advertising revenue by selling paid advertising and sponsored links on its Web site and e-mail client. In an attempt to grow its registered user base, lncrediMail Xe is available as a free download over the Internet. However, those wishing to access the enhanced product, lncrediMail Premium, must subscribe. The conversion of registered users to purchasing customers represents one of the largest challenges the Company faces, but also one of the biggest revenue opportunities. Management feels that allowing users to have a taste of the lncrediMail product will whet their appetite enough to ultimately encourage subscription . For that reason, the free version is feature limited, not time limited . Free users can acquaint themselves with the basics of lncrediMail for as long as they like, but paying for lncrediMail Premium will enable them to access additional features and capabilities including advanced account access, voice message recorder, skins WWW. VREXPO .NET
. . CONNECT
fncrt=ciiM if Email has Finally Evolved MAIL:NasdaqSC lncrediMaillnc. 211 East 43rd St. Suite #2300 New York, NY 10017 www.incredimail-corp.com
(the colors and graphics that surround the application when you open it). smart notifiers and VIP support. Additionally, lncrediMail Premium does not display advertising banners or promotional links. Those wanting ultimate access, however, must pay to see what's behind the gold door. The "Gold Gallery " provides members entry to an exclusive database
'We're about making e-mail a fun, interesting, enticing experience.' populated with thousands of options, for the best content that can be applied to e-mail messages generated by Xe and Premium. A supplementary product, Letter Creator, is geared toward individuals who want more control over the look of their e-mail background. Users can create e-mail backgrounds with family photos or design their own letterheads. To date, 1.5 percent of the 66 million
CONNECT James Carbonara; The Investor Relations Group (IRG) 11 Stone St., 3rd Fl. New York, NY 10004 (212) 82S-321 0 Office
people who have downloaded or installed the product have become paid customers. This may be in line with the industry standard, but lncredimail plans to double the figure to 3 percent in the next few years, primarily through increased marketing efforts. The dependence on subscriptionbased revenue is a shift from lncrediMail 's previous business model, which relied largely on upfront license fees. While there may be some near-term disruption due to delayed revenue recognition, this change in strategy should provide lncrediMail with greater long -term stability and a lucrative revenue stream. A 131 percent year-to-year increase in deferred revenue in 2005 speaks to the potential of this new direction. lncrediMail has historically driven revenue through a viral marketing campaign and word of mouth . E-mail sent using lncrediMail feature a link at the bottom that recipients can click on to download the free product. This low-cost, loweffort strategy has been a solid means of attracting customers, but it does not represent the most effective long-term marketing strategy. Using proceeds from its recent IPO and the resources developed through the establishment of a New York office, the Company plans to shift to a more traditional sales strategy that includes advertisements, media buying and public relations activities to encourage brand awareness. Increasing paid advertising and sponsored links will allow lncrediMail SUMMER 2006
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to monetize visitor traffic to its Web site, with potential advertisers enticed by the Company's immense user base. "We believe we could tap into the 98 percent of lncrediMail users worldwide that are not paying customers by nonintrusive revenue-gen erating advertising and thus, without ta xing our loyal, huge user base, flip the switch that will triple our annual revenues;' asserts Holzmann. Management anticipates its newly established U.S. presence will also serve as an impetus for developing strategic pa rtnerships. By partnering with leading service providers, I ncrediMail offers user products under co-branded collaborations. The Company has al ready established licensing and promotional arrangements with thirdparty Web site operato rs PointMatch USA and Oberon Media for use of t he "lncredi" brand to create the URLs lncrediDate.com and lncrediGames.com . Prior to the opening of the New York office, all of the Company 's operations w ere based in Tel-Aviv. lncrediMail management maintain s that, despite its status as an Israeli-based company, it is not affected by geopolitical events in the Middle East. Volatility might impact labor-intensive industries o r those with factories located near borders, but lncrediMail 's business is IP intensive, with all data backed up in t he U.S., and Tel -Aviv is a coastal city. The Company's financial performance bears this out. lncrediMail has been profitable since 2002 and posted a t op-line average growth of 22 percent between 2002 and 2005 . According to Management, the January 2006 IPO brought about changes that extend past the additional financi al resources it provided . "We have grown from being a co uple of people providing a fun download to becoming a p rofitable international softwa re company providing a platform for our users to send over 350 million e-mails a month," says Holzmann . A recent creative e-mail patent aw arded to the Company serves as an additional indication that it s efforts have been worthwhile. 70
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"lncrediMail relies on the quality and creativeness of its products, and this patent further advances and validates our unique approach and technology;â&#x20AC;˘ Adler was quoted as saying in a press release announcing the Company 's receipt of the award. Distribution agreements with original equipment manufacturers (OEMs) represent another untapped market for lncrediMail. By bundling its software with an OEM 's hardware products when sold , the Company is positioned to heighten brand recognition, increase the number of user registrations and generate high-margin license revenues.
lncrediMail has been profitable since 2002 and posted a top-line average growth of 22 percent between 2002 and2005
Constantly pursuing innovation, lncrediMail 's CTO and his R&D staff of more than 30 remain focused on product development. In addition to lncrediMail Xe and lncrediMail Premium and their associated products, the Company launched JunkFilter Plus, an enhanced anti-spam product, in 2005 . It also recently released a beta version of Magentic, a stand-alone product that gives users desktop-enhancing capabilities . Similar to lncrediMail Xe, the product will initially be available for free in order to reach users and develop a following. In addition to offering a huge selection of wallpapers and screen savers, Magentic can transform personal digital photos into wallpapers and screensavers. Perhaps more importantly, it extends the Company's reach from traditional e-mail into the PC market. The immensely popular digital photography arena is a focus of product development going forward . In addition to Magentic, which incorporates digital photos, the Company is in the process of developing lncrediPhoto, with an expected launch date of 2007. lncrediPhoto will allow users to create attractive, enhanced and personalized photo albums and share pictures via e-mail , create their own prints, upload Web galleries to the Internet and slide shows for display on personal computers . The development of these new products will offer significant crossselling opportunities within the Company's existing user base and stimulate sales going forward. Unlike many of its competitors, whose upgrades depend on software development, enhancement of lncrediMail 's existing products involves primarily developing new graphics. The process is therefore easier and more prolific, enabling the R&D team to develop new features on a daily basis and give users even more to enjoy. Focusing on having fun and looking good is generating such immense market opportun ities and revenue potential that it almost seems too easy, but you sure won't hear lncrediMail or its millions of worldwide customers complaining. VR
WWW.VALUERICHONLINE .COM
~~~~
rt~.~ TRACEGUARD
Better Explosive Detection Losing the war on terror is not an option. But as a recent GAO sting operation showed, luggage screeners do not have adequate solutions to prevent explosives being smuggled onto aircraft.
Which is why TraceGuard Technologies Inc. (TCGD.OB) is making such big waves with its patent-pending automatic trace explosive extraction and collection solutions. Our CarrySafe screening system for carry-on luggage, currently at an advanced stage of development, is designed to help dramatically improve explosive detection levels while shortening passenger lines.
The market is demanding better explosive detection.
TraceGuard is dedicated to meeting this demand.
www.traceguard.com
Mission Possible Eliminating the unacceptable, Biophan gains profitable allies
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"' E In the early 1980s, the hottest craze with children across America was confronting the seemingly insurmountable challenge of solving the Rubik's Cube. Schoolyards became testing grounds, with competitors toiling to achieve results . While getting one or two sides to match was impressive, the ultimate victor was the one who could conquer the entire cube. That student was considered a genius and usually milked his or her status as master of the impossible for all it was worth. Now imagin e that the schoolyard is today's biomedical industry and its companies are th e ones striving to solve the greatest challenges facing the medical community. What does an industry player do when it has accomplished the unthinkable and made a medical breakthrough? For many it 's the chance to bask in some glory and start monetizing their innovation . For Biophan Technologies, Inc. (OTCBB: BIPH), however, there has been little complacency or self-congratulation. True to its innovative nature, the medical technology development co mpany has done only one thing upon accomplishing a groundbreaking scientific achievement- immediately started working on another one. 72
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During the five years of its existence, Biophan has solved the puzzle for two of the most challenging problems facing medical devices. When you couple these remarkable achievements with a third achievement- exclusive marketing distribution rights for the novel cardiac assist device MYO-VADTM -you might say that Biophan has secured a spot at the "cool kids' table" in the biomedical community. Now this lineup of new technologies is on the cusp of commercialization, and the resulting revenue potential may soon gain recognition with investors as well.
Feeling the Heat Since its introduction in 1980, magnetic resonance imaging (MRI) has become an increasingly important medical diagnostic tool. Rather than radiation, MRI uses magnetic fields and computer technology to produce high-resolution images of organs and structures within the body. MRI is used to examine the heart, brain , liver, pancreas, reproductive organs and other soft tissue in an attempt to assess blood flow, detect tumors, diagnose many forms of cancer, evaluate infections and assess injuries to bones and joints. Unfortunately, a large segment of the population is unable to benefit from this
powerful and widely used technology. Recipients of pacemakers and other implanted devices are currently denied access to MRI. Estimates are that over half of the three million people who currently have pacemakers have needed an MRI but were unable to receive one. MRI 's electromagnetic forces can cause these devices to heat up dangerously or can create induced voltages or malfunctions, in the most extreme cases causing serious harm or even death to patients. A total of $12 billion worth of medical devices shipped annually are not safe or clearly imageable using MRI. Enter Biophan, which has developed proprietary solutions to address all of these issues. In November of 2002, the Company successfully tested a method for shielding implantable and interoperative medical devices from MRI interference. The new technology uses novel shielding designs on the device's electrical connecting "leads" to solve the safety problems of both heating and induced electrical voltages caused by the electromagnetic fields used by all MRI machines. An added selling feature is that manufacturers of pacemakers and other devices can apply Biophan's technologies with minimal disruption to existing products or manufacturing processes. Biophan's multiple solutions to these WWW. VALUERICHONLINE .COM
problems include methods for reducing the antenna effect of the metal wire leads that connect pacemakers to the muscular tissue of the heart. Using anti-antenna geometries to make slight changes to the wire, Biophan has been able to eliminate most of the causes of heating and induced voltages responsible for safety problems wi t h MRI. In addition, the Company has proven the effectiveness of radio frequency (RF) filter technology, based on a patented solution developed at Johns Hopkins University and licensed exclusively to Biophan for implantable devices. These RF filters, placed near the tip of the device, have been shown to significantly reduce or eliminate the heating effect. While these discoveries have had a profound impact on pacemaker incompatibility issues, they have also expanded Biophan's potential market, allowing the Company to develop a broad range of interventional surgical products for use with MRI. This inc ludes guide wires, catheters and biopsy probes, as well as inter-operative imaging products that previously could not be safely used with MRI machines due to the heating effect.
A Prestigious Partner Biophan's next-generation technology solutions captured the attention of Boston Scientific (NYSE: BSX), a major medical device manufacturer. In 2005, the two companies entered a licensing agreement in which Biophan would provide Boston Scientific with the rights to use its MRI safety and image compatibility technologies in a broad range of exclusive and non-exclusive product areas in exchange for royalty rates ranging from 3 percent to 5 percent. In addition to an upfront license fee of $750,000 specified in the agreement, Boston Scientific also invested $5 million in the Company through the purchase of Biophan common stock . When the agreement was announced, Biophan CEO Michael Weiner said, "We are particularly excited and gratified to see Biophan's solutions validated, and look forward to their implementation by one of the world 's most innovative medical device manufacturers:' Biophan made another splash in the scientific community when it announced WWW. VREXPO .N ET
. . CONNECT
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TECHNOLOGIES, INC. BIPH :OTCBB Biophan Technologies, Inc. 150 Lucius Gordon Drive, Ste 215 West Henrietta, NY 14586 www.biophan .com
the development of technologies for imaging the inside of implanted vascular stents. In a balloon angioplasty, a tube called a stent is inserted into narrowed coronary arteries to keep them open. These small metallic devices allow the normal flow of blood and oxygen to the heart. Restenosis, or there-narrowing of coronary arteries, can be a problem following a stent replacement. Due to image limitations with MRI and X-rays, individuals with stents have historically had to undergo invasive diagnostic procedures to assess restenosis (blockage), limiting the usefulness
CONNECT Carolyn Hotchkiss CHotchkiss@biophan.com 585-214-2441
in MRI safety, the Company recently entered into a cooperative research and development agreement (CRADA) wi t h the U.S. Food and Drug Administration (FDA) to help improve safety testing in MRI environments. Under this CRADA, Biophan will collaborate with the FDA's Science and Engineering Laboratories in the Center for Devices and Radiological Health to help develop guidelines for assessing the safety of cardiac pacemakers and neurostimulation leads used in the MRI environment. These guidelines will be provided to the various standards setting organizations.
Saving Lives
A metal stent visible under MRI
of these diagnostic procedures. In early 2005, Biophan acquired a majority interest in biotech innovator aMRis GmbH and gained a suite of technology patents including those for covering a stent with a fine wire mesh, creating a resonant circuit. This process can make stents of certain metals visible under MRI, eliminating the need for invasive diagnostic procedures . Biophan now has control of three preferred solutions to stent visibility : aMRis's technology, Biophan's coating solution and a third technology licensed exclusively from Drs. Buecker and Ruebben in Germany. To maintain its front-runner status
Biophan's newest product does more than eliminate medical complications. It can potentially save hundreds of thousands of lives. The Company has secured the rights to acquire a majority position in MYOTECH, LLC, a company developing the MYOVAD TM, a novel cardiac assist device. The MYO-VAD consists of a flexible polymer "cup" that can be installed around the heart in approximately three minutes. The device compresses and expands bi-directionally, providing the energy to restore blood flow to normal life-sustaining levels. Virtually all currently existing cardiac assist devices utilize mechanical pumps that contact circulating blood. Resultant complications can include clotting and stroke, bleeding and infection. Since the MYO-VAD does not contact circulating blood, those risks are significantly reduced. "The minimally invasive MYO-VAD promises to be safer, more effective, less SUMMER 2006
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expensive, available at virtually every hospital and, therefore, a very exciting
Weiner. "It could save hundreds of thousands of lives and help reduce the suffering of potentially millions of people who experience heart failure." In June, Biophan announced the allocation of $1 million in development funding from the U.S. government, validating the importance of the Comany's R&D in the MYO-VAD. The Company anticipates that the
alternative to the more than $7 billion market opportunity for VADs;' says Weiner. When a person's heart stops beating, there are limited options. CPR and defibrillators can get a heart beating, but sustaining that beat can be a problem. These methods fail approximately 80% of the time within the hospital and death ultimately results. The MYO-VAD provides a new option for quickly restoring cardiac output in patients who don't respond to standard resuscitation measures. The device is inserted through a small incision between the ribs and does not require opening the chest, giving the physician time to properly treat the patient while preventing serious damage to the brain and other vital organs. Conventional VADs can take 45 minutes to two hours to install, while the MYO-VAD MYO-VAD supports both right and left ventricles. can be in place within three minutes. The MYO-VAD's competitive MYO-VAD will be on the market in three years, but in a year or less it advantages don't end there. Existing ventricular assist devices (VADs) usually expects to announce a deal with a address only one aspect of heart failure, major medical device company as the t ypically by assisting the emptying of exclusive distribution partner. According t he left ventricle only. The MYO-VAD to Management, that deal will take provides active filling and emptying Biophan to a positive cash-flow position support to both the right and left and should begin generating $100 ventricles. This makes it possible to million or more for the Company within treat many types of heart failure. It five years. With the addition of this is also projected to be a lower-cost technology, total licensing and product device. With cardiovascular disease sales for Biophan are expected to reach accounting for more than 40 percent $200 million annually in five years. of all deaths in the United States and Verging on Growth representing as the largest single cost in health care, there is intense competition The MYO-VAD investment helped to find cost-effective solutions. Biophan significantly improve its A previous version of the technology balance sheet by adding nearly $12 has been installed in over 700 animals million of assets. It also enabled and has saved human lives in emergencythe Company to meet an important use situations. In a video presentation qualifier for listing on a major stock available on Biophan's Web site, Dr. James exchange- one of Biophan's key goals E. Lowe, a Duke University Medical Center for the upcoming year. According to surgeon and professor, discusses how Management, the Company currently his team used the technology to save meets most of the qualifications and the life of a young woman rushed to has an attractively priced $30 million the hospital with heart failure resulting financing facility in place to take from a viral infection . They were able to it through the next two years. This restore the woman's blood flow in three initiative may have had some impact to four minutes, which kept her alive for on Biophan's stock. Weiner believes seven days and ultimately saved her life. the stock is currently undervalued by "We think it's potentially one of the market due in part to the extended t he most, if not the most, significant quiet period the Company was in. medical devices in development;' says One of the consistencies of Biophan's 74
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major breakthroughs is the fact that they are marketed by strategic partners. The Company develops the product, creates strong intellectual property positions and then makes a deal with a partner to distribute the product or incorporate the technology into that company 's product line. While the Company remains primarily focused on its MRI compatibility and the MYO-VAD technology, it continues to develop a portfolio of other innovative products, including those in the biothermal power and drug delivery areas. However, Management feels the asset value of these technologies would be fairly significant if they were to exist outside Biophan. In the future, the Company may reorganize divisions into stand alone units allowing them to expand their sales and marketing, technical capabilities and brand awareness. Or, in some cases, the divisions may be sold or spun out into stand-alone entities. At the heart of every solid biotech company are talented people. Biophan is no exception. The credentials of the Company's Board of Directors and Scientific Advisory Board are superb. Members include a Nobel Prize winner, a world-renowned mathematician, a winner of the National Medal ofTechnology, inventors and distinguished professors. Weiner says this level of genius is due to the Company 's reputation, not any aggressive recruiting on his part. " We attract them because we're doing some of the most exciting and important work in innovative medical device technology. We have broad intellectual property protection for the innovations we create, and we have the teams which can take these innovations to market:' Given the Company's focus on constant innovation and the impressive portfolio of technologies amassed during its short existence, Biophan has gained a reputation as a "Rubik's Cube" genius of the biomedical industry - a company that can completely solve seemingly impossible puzzles. "There are a lot of exciting innovations, several of which have made fundamental shifts in the knowledge and capability of the medical device community," says Weiner. "We're now known as an accomplished innovator:' V R WWW. VALUERICHONLINE .COM
All Cltargecl Up Eletlro Energy's bipolar batteries ... longer, stronger, smaller and less expensive By Liza Grant Smith Everyone is familiar with the Energizer manufacturing, which gives us an edge to foot much of the bill. By focusing Bunny, whose main job is to illustrate on ultimate applications rather than in just about any battery application." the importance of battery endurance The Company is focusing on the merely the technology, the Company as a selling feature. When it comes higher-performance chemistries of has sought out strategic partners who to batteries, however, lasting longer is nickel-metal hydride and lithium-ion, would benefit from the development only one aspect of product demand . developing batteries and battery systems of its products. Since its inception, As is the case with many technologies, that use this technology. The wafer Electro Energy has received over $30 battery innovators are also constantly design provides these products with million in government funding from the striving to make products smaller, U.S. Air Force, Department of Energy, the inherent advantage of scalability. U.S. Army, and NASA, among others. stronger and less expensive. ConnecticutCells can be made into any shape and The Company secures the funding to based Electro Energy Inc. (NASDAQ: stacked on top of each other as needed EEEI) is poised to address all of these to create multi -cell batteries with the support development of its battery concerns with its proprietary bipolar required energy capacity and voltage for concepts with the intent of ultimately battery design applicable to everything using technological development as a any given application . The individually f rom power tools to F-16 fighter aircraft. springboard into commercialization . sealed cells also eliminate the need for While applications for Electro Energy's Considering their numerous advantages, interconnectivity, saving weight and cost. products are seemingly Electro Energy 's products endless, the Company sees its make a drumming bunny seem greatest growth opportunities a bit like a one-trick pony. in the military, transportation, Some of the greatest utility infrastructure and innovations come when power-tool markets. individuals strip an idea down With funding from the to its roots and determine a Air Force, Electro Energy better way to rebuild it. Such has become an established was the case with Marty player in the military market, Klein, a seasoned engineer/ developing fighter aircraft entrepreneur, who founded power systems. Once Electro Energy in 1992 to development of its battery for develop and commercialize the F-16 and F-18 is complete, the concept of bipolar nickelthe Company expects to metal hydride batteries. expand coverage into the Traditional batteries are latest-model aircraft, such as constructed with separate the joint-strike fighter, and positive and negative plates. hopes to eventually extend In contrast, bipolar batteries its reach into commercial use single plates that serve aviation. Electro Energy 's as both simultaneously, work with the military also with the opposite sides includes advanced chemistry being either positive or products. On June 14,2006, negative. Electro Energy Electro Energy has become an established player in the military market. the Company announced CEO Michael Reed note s the an $850,000 contract with the U.S. advantages of the Company's unique Technological development doesn't Army Communications and Electronics come cheap and is often accompanied and patented flat-wafer cell design. Command to apply its bipolar "Our bipolar battery design provides by a hefty price tag in the form of R&D technologies in lithium-ion chemistry to a much more efficient packaging of expenses. Prior to commercialization, some of the Army's battery needs. This battery chemistry than conventional these cash drains can have a negative funding complements a direct equity battery design," says Reed. " For a similar impact on a company's financial position , investment made in 2005 by ln-Q-Tel, a battery chemistry, it is smaller, lighter digging a hole that makes long-term not-for-profit venture group established and more powerful, and we expect viability challenging. Electro Energy, by the CIA, which was also aimed at it to be lower cost in high-volume however, has secured partners wil ling 76
VALUE RICH MAGAZINE
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developing the lithium-ion bipolar . . CONNECT technology for military applications. Electro Energy's involvement in the hybrid electric vehicle market comes at an opportune time, with hybrids garnering more headlines than ever. The Company has capitalized on the success of the Toyota Prius by demonstrating EEEI:NasdaqSC its technology in the vehicle both as a normal hybrid battery and also as a Electro Energy, Inc. CONNECT plug-in hybrid, which allows vehicles 30 Shelter Rock Road Fatima Almeida to be driven 20 to 40 miles solely on Danbury, CT 06810 Tel: (203) 797-2699, ext. 10 electric power. Management plans www.electroenergyinc.com Fax: (203-797-2697 to use the Prius as a demonstration Email: falmeida @electroenergyinc.com vehicle and means to establish business relationships with OEM manufacturers. According to a recent J.D. Power & steeped with competitive pressure. As sociates report, sa les of hybrid -e lectric Along wit h the potential for Rather than being discouraged by vehicles are expected to grow by 268 financial gains, El ectro Energy 's this competition, Electro Energy is percent- from 1.3 percent to 4.2 impending shift from development to thriving off the industry's vitality, percent of total vehicles sold- between commercialization comes with the need and Reed believes the Company is 2005 and 2012. While these figures for manufacturing capability. To me et well positioned for the future. represent a significant opportunity that need, the Company recently closed "Much of the development is in for growth, cars represent only one on the purchase of significant battery segment of the transportation manufacturing assets in Gainesville, Florida. The facility offered highmarket. Due to the product's volume modern equipment at scalability, it is applicable across what Management felt were very a wide range of transportation favorable terms, but the acquisition options, from scooters to was not uncomplicated. Because buses and commuter trains. A more distant focus centers of the complexity of the deal and on the utility infrastructure. In some related issues, purchasing the facility and completing the distributed generation of alternative associated financing took an fuels such as solar, wind and a extended period oftime. Acco rding variety of other technologies, power to Reed, the protracted time frame generation in not necessarily synced concerned investors and EEEI 's with demand, creating the need stock price suffered as a result. for an energy storage solution. Despite the bumps, Management In addition to working with the is more sure than ever that this utility companies on this initiative, was the right deal to accelerate in November 2005 the Company the Company 's commercialization announced that it will receive plan and establish Electro Energy $1 .5 million from the 2006 budget soundly with a foundation for of the Department of Energy to growth. For the Company and its develop the concept and hardware investors, it represents a turning to offer significant improvements point in Electro Energy 's history. in bipolar-battery energy storage. "We are in transition," says Reed. While the products may be "We are currently in the heavy smaller in size, the power-tool and lawn-and -garden consumer It's an opportune time for Electro Energy's hybrid electric vehicle. application development and business development mode and markets represent a significant chemistry as opposed to battery design;' expect to see announcements that wi ll opportunity. The Company plans to he says. "We believe our battery design lead to significant revenue beginning and focus on the high-value premiumcan adopt any of these advanced growing very rapidly in 2007 and beyond." tool segment and hopes to partner chemistries that are being developed for Based on Reed's comments, Electro with OEMs that would build Electro a very successful and superior battery Energy's revenue levels, much like Energy's batteries into their products. using both the advanced chemistry its products, are likely to keep going, The battery industry is fueled by and advanced bipolar design." and going, and going . .. V R constant innovation and therefore WWW.VREXPO .N ET
SUMM ER 2006
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The VALUERICH Market lace
atmospheric glow technologies
Atmospheric Glow Technologies, Inc.
AGWT.OB : OTC BB
COMPANY OBJECTIVE: Raising Capital Seeking equity funding to finance the manufacturing, sales, and marketing of PlasmaAire'M family of air purification products. Proceeds will be directed towards market rollout of a portable commercial air purifier and in-duct system and continued development and product rollout of a room-size standalone residential air purifier.
COMPANY DESCRIPTION AGT is a growth-stage technology company dedicated to delivering products based upon its patented One Atmosphere Uniform Glow Discharge Plasma (OAUGDP®) technology. AGT's current product offerings are in air purification and biotechnology. Future development activity is anticipated to provide products in areas such as medical technology, decontamination, manufacturing and aerodynamics.
COMPANY ADDRESS 924 Corridor Park Blvd. Knoxville, TN 37932-3723 865.777.3776 F: 865.777.3767 www.atmosphericglow.com
EnXnet Inc.
CONTACT INFO Scott McDonald, CEO 865-777- 776 x223 smcdonald@atmosphericglow.com
• COMPANY OBJECTIVE: Raising Capital EEEI plans to enter military and commercial markets, such as hybrid • electric vehicles and plug-in hybrids with products utilizing its proprietary technology. $11 million was raised in April 2006 to upgrade acquired manufacturing assets. Additional capital would enable • acceleration of its business plan.
COMPANY DESCRIPTION EnXnet is an emerging developer and licensee of leading edge technologies in the areas of interactive and dual sided digital media, security/anti theft products and medical technologies. EnXnet has assembled one of the most impressive portfolios consisting of more than ten products and t echnologies, together with over ten patents which have been applied for and are currently pending. EnXnet's products and technologies address $3 trillion in combined global markets. COMPANY ADDRESS 11333 E Pine Street Tulsa, OK. 74116 918-592-0015 www.enxnet.com
COMPANY CONTACT Ryan Corley, President & CEO 918-592-0015 F: 918-592-0016 investor@en xnet.com www.en xnet.com
VALUERICH MAGAZINE
IRCONTACT Integrated Capital Partners, Inc 908-204-0004
D
i
COMPANY DESCRIPTION EEEI was founded in 1992 in Danbury, Conn. to develop, manufacture and commercialize high-powered, rechargeable bipolar nickel-metal hydride batteries. Its Colorado Springs operation supplies aerospacegrade nickel cadmium batteries and components for satellites, aircraft and military applications. EEEI is also developing high power lithium rechargeable batteries utilizing its proprietary bi-polar design. In April 2006, EEEI acquired significant manufacturing assets near Gainesville, Fla ., to accelerate commercialization. COMPANY ADDRESS 30 Shelter Rock Road Danbury, CT 06810 203-797-2699 www.electroenergyinc.com
CONTACT INFO Fatima Almeida ELECTRO ENERGY, INC. 30 Shelter Rock Road Danbury, CT 06810 203-797-2699, ext. 10 Email: falmeida @electroenergyinc.com
GNOLF.OB : OTC BB
EXNT.OB: OTC BB- Frankfurt Stock Exchange: AOHMDW
COMPANY OBJECTIVE: Develop New Business Quickly expand revenue through the introduction of products and technologies into the marketplace, focusing on: • Thin Disc © - Transform "stagnant" gih and stored value cards into multimedia marketing tools. • OneDiscTM_ Dual sided CD/DVD. • Medicai-D-Teet-OR- Save billions by reducing hospitalization, operating room and other costs.
80
EEEI : Nasdaq
ELECTRO ENERGY, INC.
COMPANY OBJECTIVE: Increase Market Awareness
COMPANY DESCRIPTION GenOil's primary technology is the Hydroconversion Upgrader (GHUTM), a proprietary upgrading process that converts low margin heavy crude oil into lighter low sulfur crude oil that can be sold as gasoline and jet fuel. The company's process can dramatically reduce sulfur and other contaminants of the crude oil, thereby helping refiners meet worldwide government mandates for low sulfur and ultra-low sulfur diesel fuels .
COMPANY ADDRESS 510,703- 6th Avenue SW Calgary, AB T2P OT9 CANADA www.genoil.net
CONTACT INFO David K. Lifschultz Chairman and Chief Executive Officer 510, 703- 6th Avenue SW Calgary, AB T2P OT9 CANADA 403-750-3450 F: 403-290-0592 sales@genoil.net IRe-mail: ir@genoil.net
WWW. VALUERICHONLINE .COM
The VALUERICH Market lace AIRCRAF T SOLUT I ONS
H ea lth B e nefits Direct GACF.OB : OTC BB
Global Aircraft Solutions, Inc.
COMPANY OBJECTIVE: Develop New Business Corporate Goals • Maximize the profitability of the Company by identifying and developing those business opportunities that offer the highest return on investment • Optimize the Company's capital structure • Cautiously build Company value through the strategic exploitation of synergistic arbitrage and acquisition opportunities COMPANY DESCRIPTION Global Aircraft Solutions, Inc. (GACF) engages in trading and arbitrage activities involving the sale of commercial jet aircraft and also provides scheduled maintenance, repair and overhaul (MRO) services for passenger and cargo transport category commercial jet aircraft through its Hamilton Aerospace subsidiary; and aircraft parts sales, support and brokerage services through its World Jet subsidiary. COMPANY ADDRESS
CONTACT INFO
6901 S. Park Ave., Tucson, AZ 85706 www.globalaircraftsolutions.com
IR Company Alliance Advisors Alan Sheinwald 914-244-0062
Health Benefits Direct Corporation
HBDT.OB: OTC BB
COMPANY OBJECTIVE: Attract Market Supply & Exposure • Health Benefits Direct Corporation Announces Opening of Atlanta Office • Health Benefits Direct Corporation Announces Acquisition of Insurance Specialist Group
·'
COMPANY DESCRIPTION
Health Benefits Direct Corporation operates an online insurance marketplace that enables consumers to shop online for individual health and life insurance and obtain insurance company-sponsored quotes for such coverage from licensed agents/ employees.
COMPANY ADDRESS
CONTACT INFO Health Benefits Direct Corporation IR Company Alliance Advisors 2200 S.W. 1Oth Street Alan Sheinwald Deerfield Beach, FL 33442 914-244-0062 www.hbdc.com
HVa~IO
TECHNOLOG I ES NRSi:J
HBSC.OB: OTC BB
Human BioSystems
COMPANY OBJECTIVE: Develop New Business Human BioSystems, a developer of preservation platforms for biological material, is seeking to license the Company's blood platelet and organ preservation technologies to qualified company(s) that have existing channels of distribution and solution manufacturing capabilities needed to service those identified markets. COMPANY DESCRIPTION
Human BioSystems is a developer of preservation platforms for extending the shelf life of blood platelets, donor organs, tissue, cell s and other biomaterials for much longer periods of time than is currently possible. HBS has been successful in preserving animal organs for extended periods of time over a wide range of temperatures from refrigeration to freezing in liquid nitrogen, and platelets at near freezing temperatures. COMPANY ADDRESS
IRCONTACT
1127 Harker Ave Palo Alto, CA 94301
Rich Kaiser YES International 800-631-8127 757-306-6090 rich @yesinternational.com
COMPANY CONTACT
Harry Masuda, CEO 650-323-0943 direct line 650-207-6888 cell hmasuda@humanbiosystems.com WWW. VREXPO .NET
Hybrid Technologies, Inc.
OTCBS :
HYBT
HYBT.OB : OTC BB
COMPANY OBJECTIVE: Raising Capital and Develop New Business COMPANY DESCRIPTION
Hybrid Technologies, Inc., (HYBT) is a development stage technology company that is focusing its resources and efforts on the development and marketing of lithium powered vehicles, products, commercial and residential properties. Hybrid Technologies, Inc. holds the licensing agreements for development of all four-wheeled, three wheeled and two wheeled vehicles and lithium/ solar power system technology for residential and commercial properties. Everything from scooters, bicycles, mopeds, motorcycles, watercraft, lawn and garden equipment, cars and homes are successfully being converted to zero emission, lithium powered vehicles and facilities.
CONTACT INFO 5001 E. Bonanza Road, Suites 138-145 Melissa Carroll Las Vegas, NV 89110 702-300-1725 www.hybridtechnologies.com Investor Relations Office 888-669-1 808
COMPANY ADDRESS
SUMMER 2006 I 8 1
The VALUERICH Market lace
IFSA Strongman, Inc.
ISMN.OB :OTCBB
IKMA.PK : OTC BB
iKarma Inc.
COMPANY OBJECTIVE: Develop new business Company Objective: Attract Market Supply and Exposure iKarma is currently seeking synergistic relationships with reputable VC's, The Company is launching its planned growth initiatives, expected investment bankers and potential business partners. to grow revenues multi-fold in the coming years. A billion people worldwide have seen the strongman sport, and the Company has an estimated market share of over 77 percent. IFSA Strongman is currently : COMPANY DESCRIPTION leveraging this exposure and brand recognition through its strategy. • iKarma.com turns happy customers into a free sales force by capturing ' - - - - - - - - - - -- - - - - - - - -- - - - - - - - - ' • their reviews and comments and turning them into a powerful sales . tool. The success of services like eBay and Amazon have shown that Company Description online reputation management has the power to boost profits and IF SA Strongman -the principal owner of the Strongman brand, sport move product for sellers of hard goods. iKarma has taken the process and entertainment -is an integrated media, entertainment, and athlete of reputation management out from the limited confines of the online/ representation company principally engaged in the development, auction marketplace and adds features that enable businesses in the production, and marketing of television programming, pay-per-view service sector to harness the power of their reputations. programming, live events, and the licensing and sale of branded consumer products featuring both the Company's brand and the brands of the over 80 athletes from over 30 countries it represents. COMPANY ADDRESS
IFSA St rongman Inc 28-32 Wellington Road London NW8 9SP, England T: +44 20 7060- IFSA www.ifsastrongman.com
CONTACT INFO Jussi Laurimaa Phone: +44 20 7060 IFSA Direct (UK) : +44 77 9862 5329 Direct (USA): + 1 (786) 301-8819 jussi.laurimaa@ifsastrongman.com
COMPANY ADDRESS
CONTACT INFO
1203 Town Center Drive Suite 212 Jupiter, Florida 33458-5210 www.iKarma.com
Paul Williams- CEO 561 -427-7285 Paul@iKarma.com
IRCONTACT
Michael Morfit
212-277-8137
iner~tifiVialf Email has Finally Evolved Immersion Corporation
IMMR : Nasdaq
COMPANY OBJECTIVE: Attract Market Supply & Exposure To proliferate its technologies across markets, platforms, and applications so touch and feel become as common as color, graphics, and sound in user interfaces. Short-term focus on achieving sustained profitability by executing sales/ marketing plans, controlling expenses, selective investment, and defense of patents. COMPANY DESCRIPTION Immersion develops, manufactures licenses and supports a wide range of hardware and software technologies that let users interact with digital devices using their sense of touch. Immersion focuses on six application areas: medical, gaming, mobility, automotive, touchscreens, and industrial. Immersion has more than 600 patents issued or pending. COMPANY ADDRESS 801 Fox Lane, San Jose, CA 95131 www.immersion.com CONTACT INFO Stephen Ambler Chief Financial Officer 408 467 1900 sambler@immersion.com
82
VALUERICH MAGAZINE
IR CONTACT INFO Stephen Ambler Chief Financial Officer Phone: 408 467 1900 sambler@immersion.com
MAIL : NasdaqSC
lncrediMail lnc.
· COMPANY OBJECTIVE: Attract Market Supply & Exposure lncrediMail's goal is to become the market leader in entertaining and creative email systems for the consumer market. MAIL seeks to generate increased brand awareness by extending beyond viral marketing into more traditional sales and marketing strategies including • advertising and distribution relationships. COMPANY DESCRIPTION
lncrediMail designs and markets an integrated suite of customized and entertaining email software products for the consumer market. Its software enables users to design and personalize e-mail with a large collection of multimedia content. With 65+ million registered downloads, the Company generates revenues through licensing, cobranding, advertising and sponsored links. lncrediMail differentiates itself by not using adware, pop ups or any type of intrusive ads.
COMPANY ADDRESS
lncrediMaillnc. 211 East 43rd St. Suite #2300 New York, NY 10017 incred i ma il-corp.com
IR CONTACT INFO Jeff Holzmann James Carbonara Executive V.P. The Investor Relations Group 212-682-1995 Office 11 Stone St., 3rd fl 646-354-9797 Mobile New York, NY 10004 Jeff@i ncred i ma i l.com 212-825-3210 Office CONTACT INFO
WWW. VALUERICHONLINE .COM
The VALUERICH Market lace
--?Pre
Inc. G lobal Solutions , Inc.
Sage Global Solutions, Inc.
PME: Am ex; PMD :TSX
PreMO Inc.
SGGL.PK : OTC BB
COMPANY OBJECTIVE: Mergers & Acquisitions Sage Global's objective is to extend its reach within the mortgage services and insurance industries through acquisition . Having successfully completed three acquisitions, Sage is uniquely positioned to present a full range of online financial and insurance services for small businesses and the individual retail customer
COMPANY OBJECTIVE: Develop New Business, Mergers & Acquisitions PreMO plans to in-license or acquire new technologies that align with the company 's predictive medicine focus and to seek a commercial partner for its cancer portfolio. PreMO is also interested in exploring opportunities for acquisitions. COMPANY DESCRIPTION
COMPANY DESCRIPTION
PREVU* Skin Sterol Test assesses a patient's risk of heart disease on the palm of the hand by non-invasively measuring the amount of cholesterol in the skin tissues. PREVU* is licensed worldwide to McNeil Consumer Health care for marketing and distribution. PreMO's non- or minimally-invasive tests for early-stage colorectal, lung and breast cancers are currently in clinical development.
COMPANY ADDRESS
CONTACT INFO
4211 Yonge Street Suite615 Toronto, Ontario M2P 2A9 www.premdinc.com
Sarah Borg-Oiivier Director, Communications 41 6-222-3449 ext . 27 F: 416-222-4533 sbolivier@premdinc.com
Sage Global's mission is to present a full spectrum of online fin ancial and insurance services and products for small businesses and the individual retail cu stomer. Having completed three strategic acquisitions during the past year, Sage has taken significant steps toward its goal of becoming a complete financial services institution positioning itself as a COMPANY ADDRESS
CONTACT INFO
Sage Global Solution s, Inc. 217 Technology Drive, Suite 250 Irvine, CA 92618 www.sage-global.com
Henry D. Davidson, President henry@sage-global.com Andrew Kondo, CEO andy@expnotary.com Doug Coulter, CTO doug@onlinemortgageinc.com Phone: 949-885-9359 Fa x: 949-861-9760
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SANZ.OB : OTC BB
SANZ Inc.
Signalife, Inc.
SGN : AMEX
r------------------------------------------, . COMPANY OBJECTIVE: Investor Awareness/Capital Formation SANZ offers investors a low-risk, high-potential opportunity to engage with two exciting inter-related technologies: • Dynamic storage solutions market driven by the explosive growth in data management ~ • Rapidly developing market for geospatial imagery software used to provide users with data quickly and easily COMPANY DESCRIPTION
Working with such brands as EMC, NetApp and Symantec, SANZ delivers sophisticated data storage/ management solutions to clients in the commercial and federal markets from several locations across the U.S. In 2004 SANZ introduced its proprietary software product, EarthWhere'M that provides geospatial imagery users dramatic improvements in speed and processing power. The company already counts many large federal agencies as clients and expects further dramatic growth. COMPANY ADDRESS SANZ Inc. 9800 Pyramid Court, Suite 130 Englewood, CO 80112 303-495-6300 Fax: 303-814-0693 www.sanz.com
WWW. VREXPO .NET
CONTACT INFO
Robert Ogden, CFO SANZ Ron Both, IR, Liolios Group Email : rogden @sanz.com Email: ron @liolios.com 303-495-6321 949-574-3860
• C~M~ANY_ OBJE~TIVE: Develop New Business . . ! S1gnahfe Will contmue to develop and commerc1ahze medical device · products. The company plans to initially focus on the cardiovascular market, and then move to other areas of concern such as neurological • disorders. Signa life recently announced it's partnership with : Rubbermaid, Inc. to distribute its product globally. COMPANY DESCRIPTION Signa life, Inc. is a medical device company focu sed on the detection of cardiovascular disease through continuous ECG signal monitoring. Signa life is positioned to become the global premier provider of health monitoring products. Using its patented signal processing technology, Signa life designs and develops medical devices that improve the efficacy and reduce the costs of diagnostic testing and monitoring of ambulatory patients. Signalife's revolutionary, FDA approved 12-lead electrocardiograph ECG monitoring system, Fidelity1 00, records high quality ECG signals from ambulatory cardiac patients. The Fidelity1 00 addresses a critical need in the $400 billion cardiova scular market . COMPANY ADDRESS
531 South Main Street Suite 301 Greenville, SC 29601 www.signalife.com SUMMER 2006
83
The VALUERICH Market lace SILVERSTAR H
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Silverstar Holdings, Ltd.
SSTR : NasdaqSC
SMART
ENERGY
SOLUTIONS
SMGY.OB: OTCBB
Smart Energy Solutions, Inc.
• Company Objective: Attract Market Supply & Exposure. COMPANY OBJECTIVE: Mergers & Aquisitions ! SMGY is building market awareness for our company and our products. Key Growth Components: • Fantasy Sports Subsidiary was sold for $3 .85 million in cash, a gain of ' We are expanding our product marketing and availability within $2 million several major market segments in North America and Globally. Our products address two critical needs on every vehicle and boat, "energy • SSTR has $12M in cash and is focused on acquisitions suited for management and theft" and we are agressivly introducing ourselves to overall growth strategy ! this enormous market. ·Strategy First, Inc. a leading developer and worldwide publisher of entertainment software for the Personal Computer : Company Description Company Description • Smart Energy Solutions, Inc. manufactures, markets and sells the Battery ! Brain TM . Silverstar Holdings, Ltd. (NASDAQ: SSTR) is a Company focusing on ! The Battery Brain"' attaches to the Battery of any vehicle and protects acquiring controlling positions in high growth fee-based electronic . the vehicle from battery failure and vehicle theft. It is an innovative game businesses that stand to benefit from the economies of scale [ electronic accessory, which easily attaches to the battery of any of a generated by Internet and other technology related platforms. The · wide range of vehicles, and uses patented technology to ensure the Company currently owns Strategy First Inc., a leading developer and worldwide publisher of entertainment software for the PC, and a stake in owner always retains enough charge to start the engine. Magnolia Broadband, a fab-less Semiconductor Company and innovator of radio frequency (RF) solution s for the cellular industry. The Company recently sold off their Fantasy Sports subsid iary for $3.85 million in cash. COMPANY ADDRESS Silverstar Holdings, Ltd. 1900 Glades Rd., Suite 435, Boca Raton, FL 33431 www.silverstarholdings.com
COMPANY ADDRESS Smart Energy Solutions Inc. 207 Piaget Ave. Clifton NJ 07011 www.SMGY.net
IRCONTACT Alliance Advisors Alan Sheinwald 914-244-0062
·~~~ rt~ .~ TRACEGUARD
CONTACT INFORMATION Ed Braniff, CFO ed.braniff@batterybrain.com 973-394-6000
THE TUBE MED I A
TraceGuard Technologies Inc.
TCGD.OB : OTC BB
THE TUBE Media Corp.
C
ORP
TUBM.OB :OTCBB
Company Objective: Raising Capital TraceGuard seeks to raise capital in order to materialize and commercialize its innovative technology. TG plans to become a leading supplier to the transportation security industry, and to expand its focus to other sensitive areas including transportation terminals, border crossings, mail services and food/pharmaceutical plants.
COMPANY OBJECTIVE: Develop new business THE TUBE Media Corp. is a media holding company whose core operating business is its wholly owned subsidiary, THE TUBE Music Network, the primary revenue driver for TUBE Media. The network will generate revenue from advertising and the sale of music and merchandise.
COMPANY DESCRIPTION TraceGuard develops innovative security technologies and solutions for the expanding market of explosive detection. The Company's initial systems are targeted at the airport security market. TG's solutions are based on patent-pending automated non-invasive trace extraction and collection technologies designed to help detect explosives in suspect luggage. The TG management team has broad experience and expertise in the homeland security sector, product engineering, and business development.
COMPANY DESCRIPTION THE TUBE is utilizing digital multicasting to deliver 24-hour, pure music programming to viewers in Raycom Media, Tribune Broadcasting and Sinclair Broadcast Group markets nationwide. Les Garland, CEO ofTHE TUBE, was one of the originators of the concept of music on television as co-founder of MTV, VH1 and MTV2.
COMPANY ADDRESS TraceGuard Technologies Inc. 330 Madison Avenue, 9th Floor New York, NY 10017 www.traceguard.com
84
VALUERICH MAGAZI N E
CONTACT INFO David Ben Yair, CFO 866-401-5969 david.ben-yair@traceguard.com
COMPANY ADDRESS THE TUBE Media Corp. Business Development 1451 W. Cypress Creek Rd Fort Lauderdale, FL 33309 www.tubemediacorp.com
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CONTACT INFO Judy Crowhurst Business Development 1451 W. Cypress Creek Rd Fort Lauderdale, FL 33309 954-714-8100 office 954-714-8500 fax
WWW. VALUERICHONLINE .COM
Innovative e-mail solutions that enhance traditional email communication.
It's
INCREDIMAIL!
Over 70 million registered downloads from over 100 countries Over 1 million registered downloads per month Over 10 million active users Over 300 million lncrediMail emails sent monthly Over 1 million products and subscriptions sold
Midtown Partners™ Member NASD & SIPC
Helping co111.panies gro"W, one transaction at a time. PIPES
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NY Offices: The Chrysler Building, 405 Lexington Ave., 26th Fl 257 Park Ave. South, 12th Fl
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646.230.1001
www.midtownpartners.com
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To learn why so many small-cap companies are becoming Harbinger Research clients, visit us online at www.harbingerresearch.com or call us at 212.612.3000.
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BEACH RESORT
525Ft. Lauderdale Beach Blvd . Ft. Lauderdale , FL 33316 www . trun1plasolas . con1 ....__~-.:---~_ 87_7. TRUMP. 01 @ ·we are pledged to th e letter a ~d .spiri t o f U.S. p olicy for th e achievemen t of equal h ou1 ing o ppo r tunity th rough o u t th e Natio n . We encour age and supp ort an affirmative advertising and =-=: m arketing program in--which the re are n o-b aiTiers to ob taining h ousing because of race, color, religion,
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