Sure Trace Updates Shareholders and Announces Share Buy-Back.
CALGARY, Alberta--(BUSINESS WIRE)--Oct. 2, 2003
Peter Leeuwerke, Chief Executive Officer of Sure Trace Security Corporation (OTCBB: SSTY) issues the following corporate update.
Over the past nine months, our senior management team and I have been working diligently to set a new course for Sure Trace Security Corp. I am very pleased to report that we have made very good progress on our set goals, are looking forward to completing some planned events over the final quarter and anticipate exciting news over the next 12-18 months.
Sure Trace and its wholly-owned subsidiary, I.D.OLOGY Laboratories Inc. (I.D.OLOGY), has been busy ramping up its sales programs combining the latest advancements in covert identification and analysis technologies into pro-active systems to meet our clients' needs for Asset and Intellectual Property protection.
Sure Trace plans to fully exploit I.D.OLOGY's dominant position as the only "Coded Fluid" producer (the industry term for I.D.OLOGY's synthetic DNA) to offer a portable scanner that can detect the presence of its coded fluid instantly, anywhere, anytime. I am pleased to report that of the six known sellers of Coded Fluids only one has its own scanning capability, that its scanner is not portable and comes at a cost of more than ten times that of I.D.OLOGY's portable scanner. Of the remaining five, I.D.OLOGY successfully hired 100% of the operational staff of one of its competitors, while two others have signed non-disclosure agreements with I.D.OLOGY in an attempt to license our technologies to authenticate their own.
In order to maximize our current opportunities, the corporate plan that we had implemented is now starting to formulize. We continue to further develop effective strategies to get our various technologies to market.
In September 2003, Sure Trace completed a $25 million private placement at an average equity investment of $0.63 per share with Can-West Venture Capital Limited ("Can-West").
To ensure business focus, the Company repositioned its executive management team and brought on a new CFO, Ms. Caroline Banks. Mr. Grahame Entwistle, former VP of I.D.OLOGY has been named President of Sure Trace, Mr. Phil Viggiani has been named President of I.D.OLOGY, and Mr. Larry Talarico has been named Vice President Sales and Marketing of I.D.OLOGY. Mr. Bob Jennens will continue with I.D.OLOGY in the position of Director Special Projects.
We centralized Sure Trace's operations in Calgary, Alberta with a new 7,500 square foot office, laboratory, and manufacturing facility. The lease contains expansion rights for an additional 15,000 square feet. This laboratory facility is currently undergoing an upgrade to ensure that it meets government security specifications. When completed in late October 2003, it will be rated as a class "B" laboratory.
With our infrastructure in place, we are now positioned to aggressively expand our distribution channels.
In September 2003, Sure Trace signed a distribution agreement with AMCO Plastics of Farmingdale, NY, a key supplier of custom specialty polymers, color compounds, color concentrates and additives, with sales in the US and NAFTA region, Europe, and the Far East. AMCO's clients produce billions of units of entertainment CDs and DVDs annually, and we expect this to translate into a major source of revenue for Sure Trace.
In July 2003, Sure Trace signed a channel partner agreement with Applied Quality Communications Inc. (AQC) of Oxon Hill, MD, a major provider of communications equipment that secure communications consulting throughout the United States and other countries and is committed to the highest level of reliability and efficiency attainable for its customers which include: Department of Justice (FBI); Department of Defense (Army, Navy, Air Force); General Services Administration (GSA); Office of Naval Research (ONR); Department of Agriculture; Federal Communication Commission (FCC); Equal Employment Opportunity Commission (EEOC); NASA; City of Virginia Beach, Virginia; Orange County, Florida and many large corporations.
In April 2003, Sure Trace signed a channel partner agreement with Tool Watch Corporation of Denver, CO, a major software developer offering asset management and tracking tools which is now actively selling I.D.OLOGY products and services to its client base of 6,000 +.
These programs are designed to allow professional sales organizations that already service our targeted clients to take advantage of I.D.OLOGY's complimentary products as their clients seek to protect against the counterfeiting and outright theft of their products.
I.D.OLOGY has also commenced execution of its direct sales plan targeted to specific industry verticals more likely to need Brand and Industrial Authentication such as sporting goods and memorabilia, casinos and lotteries, designer fashion, pharmaceuticals, automotive, music, movie, and software content producers.
I.D.OLOGY has hired its first group of sales professionals to service these markets and is aggressively seeking to hire more.
Over the next 12 months, we are also planning for strategic acquisitions to increase sales. I.D.OLOGY has launched industrial and brand authentication products and has closed on several major loss prevention accounts that will generate revenue in the upcoming months. We will also continue to develop our North American channel partner network to increase our loss prevention sales and will, within the next 12 months, expand this program to Europe.
On our investor relations and public relations front, we have retained the services of a team of professionals at The Investor Relations Group, based in New York City, to personally introduce Sure Trace to pre-qualified analysts, fund managers, and other members of the financial community. When appropriate, management meets face-to-face or via conference calls with these financial professionals to further detail the Sure Trace story. The team also serves as a contact for existing shareholders.
With all of the above accomplishments in mind, the management of Sure Trace believes that its shares are undervalued and intends to commence a share buy-back program. Under this program, Sure Trace will acquire and cancel up to 4.8 million shares over the next three months.
In summary, Sure Trace now has a well-defined and aggressive strategy in place to implement our business plan. We have been able to demonstrate our technology to numerous Fortune 100 companies and Sure Trace is confident that these companies will become customers in the near future. The team at Sure Trace is very excited to take on the challenges that face us. We appreciate your support in our ongoing developments.
Chief Executive Officer
This press release contains forward-looking information within the meaning of section 27A of the Securities Act of 1933 and section 21E of the Securities Exchange Act of 1934 and is subject to the Safe Harbor created by those sections. This material contains statements about expected future events and/or financial results that are forward-looking in nature and subject to risks and uncertainties. Such forward-looking statements by definition involve risks, uncertainties and other factors, which may cause the actual results, performance or achievements of Sure Trace to be materially different from the statements made herein.