For Thursday, August 12th
TADF, ELRA, BMGP, SMNG, DNDT
HYPF, NSEH, MOPN, NXXI, XYNH, LBSR
Our Stocks to Watch today include Tactical Air Defense Services Inc. (OTCBB: TADF), Elray Resources Inc. (OTCBB: ELRA), Biomagnetics Diagnostics Corp. (OTC: BMGP), Strategic Mining Corp. (OTC: SMNG), DND Technologies Inc. (OTC: DNDT), HyPower Fuel Inc. (OTC: HYPF), NuState Energy Holdings Inc. (OTC: NSEH), MOP Environmental Solutions Inc. (OTC: MOPN), Nutrition 21 Inc. (NASD: NXXI), Xynergy Holdings Inc. (OTC: XYNH) and Liberty Star Uranium & Metals Corp. (OTCBB: LBSR).
FEATURED COMPANY
TACTICAL AIR DEFENSE SERVICES INCORPORATED (OTCBB: TADF)
Detailed Quote: http://www.otcpicks.com/quotes/TADF.php
Company Profile: http://www.otcpicks.com/Tactical-Air-Defense.htm
Tac-Air is a privately-held Aerospace/Defense Services contractor founded by a group of former Navy, Marine, and Air Force Weapon's School Instructors, which has won and successfully executed multiple Aerospace/Defense contracts by divisions of the U.S. Department of Defense.
TADF News:
August 11 - Frivolous Action Against Tactical Air Defense Services is Dismissed
Tactical Air Defense Services, Inc. (OTCBB: TADF), an Aerospace/Defense Services contractor that offers air-combat training, aerial refueling, aircraft maintenance, disaster relief services, and other Aerospace/Defense services to the United States and Foreign militaries and agencies, is pleased to announce that the frivolous and improper Involuntary Chapter 7 Petition (the "Petition") designed to harm TADF has been Dismissed by the United States Bankruptcy Court.
On August 3, 2010, certain affiliates and business associates of Mr. Daniels, the ex-CEO of TADF against whom TADF is currently litigating in a separate action, filed an improper and frivolous Involuntary Chapter 7 Petition against the Company in the United States Bankruptcy Court for the Southern District of Florida, in an effort to delay and circumvent the legitimate civil court process, to harm and discredit TADF, and in direct violation of a Court Order previously issued by Federal Bankruptcy Judge Paul Hyman on March 14, 2010.
On August 11, 2010, at an Emergency Hearing to Dismiss the Petition, the Federal Bankruptcy judge dismissed the Petition, as had been anticipated and previously disclosed by TADF, and, moreover, due to the improper actions of the Petitioners, reserved the right of the US Federal Bankruptcy Court to:
* Impose Sanctions upon the Petitioners.
* Impose Punitive Sanctions upon the Petitioners if it is determined that the actions of the Petitioners violated the Court Order previously issued by U.S. Federal Bankruptcy Court Judge Hyman.
Although no assurances can be given, TADF believes that Sanctions will be imposed upon the Petitioners, and that it will be determined that the Petitioners violated the Court Order issued by Judge Hyman.
Alexis C. Korybut, Chief Executive Officer of TADF, stated, "I am pleased that the U.S. Bankruptcy Court made the proper determination by dismissing the frivolous Petition. TADF intends to request that Sanctions and Punitive Sanctions be imposed upon the Petitioners and Mr. Daniels for yet another improper attempt to damage TADF due to it having severed its relationship with the Petitioners or their affiliates as a result of previous improper or fraudulent actions or misconduct by the Petitioners or their affiliates. We hope that Judge Hyman will impose both Sanctions and Punitive Sanctions against the Petitioners and Mr. Daniels in order send the proper message to Mr. Daniels and his affiliates that any attempt to damage or take unfair advantage of TADF will not be tolerated. TADF remains on a clear path to fulfill the expectations of our shareholders."
FEATURED COMPANY
ELRAY RESOURCES INCORPORATED (OTCBB: ELRA)
Detailed Quote: http://www.otcpicks.com/quotes/ELRA.php
Company Profile: http://www.otcpicks.com/Elray-Resources.htm
Elray Resources, Inc. is a junior exploration and development Corporation which has successfully accumulated a portfolio of four highly prospective, heavily mineralized mining tenements in Cambodia and Mexico. Elray Resources primary objective is to source potential and viable projects, conduct geological assessments and seek Joint Venture partners to develop the properties. Elray Resources 100% controlled entity in Cambodia is Angkor Wat Minerals Ltd.
ELRA News:
August 11 - Elray Resources Gold Bearing 'Christina' Vein Update
Company Believes That Vein Is Gold-Bearing
Elray Resources, Inc. (OTCBB: ELRA), a global exploration and production mining company with a portfolio of valuable properties is pleased to inform shareholders that according to a recent Geologist's report, the "Cristina" vein in Elray's Picacho property in south-eastern Ecuador is "a very important gold-bearing structure."
The vein is located on the north-west side of the concession and has a N-NE direction, with a continuity between one and two kilometres.
Mines are found in the area starting from 1360 m. a.s.l. to 800 m. a.s.l., at a depth known of mineralization of at least 500 m. The potential of veins vary from 0.40 m. to 1.40 m. and have an angle of inclination which ranges from 70° to 90° on the NE.
The Cristina vein is part of an epithermal system of gold, with milky quartz which is hard but fragile, which contains sulphide minerals such as calcopyrite (copper), of esphalerite (zinc) and galena (lead).
"There is no doubt that this is a gold-bearing structure," commented Barry Lucas, Elray's Executive Chairman. "We are now developing a strategy for extracting the maximum possible economic value from it."
"Sovereign-debt issues and currency risk remain prevalent and look set to keep gold buoyant for the foreseeable future," analysts at GoldCore recently wrote in a note. "Indeed, gold is increasingly being seen as a safe-haven currency."
FEATURED COMPANY
BIOMAGNETICS DIAGNOSTICS CORPORATION (OTC: BMGP)
Detailed Quote: http://www.otcpicks.com/quotes/BMGP.php
Company Profile: http://www.otcpicks.com/Biomagnetics-Diagnostics.htm
Biomagnetics Diagnostics Corporation is an advanced medical device and biotechnology company. The Company's revolutionary diagnostic systems, which are based on advanced magnetics, test for any viral or bacterial disease using any body fluid. The Company's technology allows laboratories to perform far more tests in the same amount of time it takes to do a single test. The HTS-MTP platform is designed to detect the actual virus and viral load in body fluids and not just simply screen for the presence of viral antibodies.
BMGP News:
July 26 - Biomagnetics Provides Investor Update
Biomagnetics Diagnostics Corp. (OTC: BMGP), a developer of revolutionary diagnostic systems and other innovative technologies, provided the following updates on corporate activities.
Clayton Hardman, CEO of Biomagnetics commented, “We have recently completed a thorough review with our auditors, results which will soon be open for review. This will be the first step in becoming a fully reporting company and being listed on the OTCBB. Full transparency is critical as we expand and move forward with planned acquisitions. Over the coming weeks and months you will see substantial developments from our company. We believe we are on the leading edge in revolutionizing tuberculosis diagnostics throughout the world in partnership with Los Alamos National Laboratories. We are equally excited about introducing to the world revolutionary biodegradable plastic film and several “green” bio-fuel formulations all of which hold the promise to significantly reduce pollution. It is clearly a very exciting time for our shareholders. Below, we have provided a detailed update of some of our recent corporate activities.”
Corporate legal staff has already completed the majority of the required Securities and Exchange Commission (SEC) filing information (Form 10) and expects to file with the SEC over the next few weeks.
Integrated Optical Biosensor Development (IOBS) - Biomagnetics continues to work toward development of the world's first integrated optical biosensor for the detection of disease causing pathogens. Biomagnetics is aggressively working with the staff of Los Alamos National Security, LLC to arrange a joint conference call or webinar to discuss this project with both the medical and investment communities.
Zhuhai Oil New Energy Science and Technology, LTD Acquisition - Biomagnetics recently announced the signing of a letter of intent to acquire Zhuhai, an innovative designer and producer of low carbon biofuels. Today, the companies are releasing test results on these unique biofuel blends. According to China National Vehicle Pollutant Emission Standards, idling nitrous oxides cannot exceed 200 ppm for light duty gasoline vehicles. Recent tests using the Zhuhai low carbon gasoline blend produced test results of only 6 to 27 ppm. The high idle standard is for less than 150 ppm, with the Zhuhai blend product testing at 3 to 15 ppm. The Zhuhai gasoline product also significantly reduced carbon emissions with test results of 0% to 0.2%, versus the maximum national carbon emissions standard of 0.5%. As was announced on July 21, biofuel production at the plant was recently increased to 60 metric tons per hour. It is estimated the average pretax profit per ton of various fuel blends that will be sold to power plants and other industrial users will range between 700 RMB and 1,300 RMB per ton. The companies recently completed additional negotiations toward the closing of this merger, which included an agreement to allow Biomagnetics to manage the process of filing all U.S. patent applications for these low carbon biofuels.
Lanzhou Sanhuan New Technology Acquisition – On July 12th, Biomagnetics announced the signing of a letter of intent to acquire Lanzhou Sanhuan, the developer and patent holder of a unique highly degradable, PVA plastic film with unique gas permeation reduction features. Biomagnetics has recently completed its initial legal review of the patent held by Lanzhou, the status of current production levels and the validity of the ongoing Chinese government agriculture-related contract for a significant amount of Lanzhou PVA film. As a result of this review, Biomagnetics will move forward with a formal offer for the Company.
Additional Acquisitions - Biomagnetics is today announcing its intent to move toward an acquisition related to the manufacturing inputs for the Lanzhou PVA film while reviewing an additional proposed acquisition relating to the production of bio-fuels in China. This additional bio-fuel acquisition is designed to provide a limited level of vertical integration in order to better meet strong demand required by a local Guangdong electric power station that has agreed to place a significant order for the cleaner burning Zhuhai biofuel blend.
Relative to the acquisition of Lanzhou and Zhuhai, Biomagnetics will issue a total of 20 million shares of common stock and has agreed to capitalize these two operations with $2 million in capital of over the next 90 days. The Company believes these acquisitions will be highly accretive to earnings and will result in a significant addition to shareholder value.
FEATURED COMPANY
STRATEGIC MINING CORPORATION (OTC: SMNG)
Detailed Quote: http://www.otcpicks.com/quotes/SMNG.php
Company Profile: http://www.otcpicks.com/Strategic-Mining.htm
Strategic Mining Corporation is engaged in the exploration and development of gold properties in Vietnam, the US (Nevada/Utah) and Africa. The company intends to expand by acquiring mineral rights to other key properties and by initiating strategic joint ventures.
SMNG News:
August 10 - Strategic Mining Announces Filing of Form 10-A with the SEC and Moves to OTCQB Tier
Strategic Mining Corp. (OTC: SMNG) announced that it has filed the amendment (10a) to the Form 10 that includes first quarter financials on August 9, 2010. The filing of the Form 10a immediately moves the company to the OTCQB tier with current status. The company has also sent a response letter to the SEC in order to continue the process to move to the Bulletin Board.
The company filed a Form 10 with the SEC on April 30 to initiate the process to move to the Bulletin Board. As of June 30, Strategic Mining is subject to all of the reporting requirements of the Securities Exchange Act of 1934. The Bulletin Board reaches a much wider audience both domestically and internationally. Strategic Mining is now a reporting company offering more transparency while investors and their brokers would have greater ease and less restrictions to monitor, buy and sell the company's stock.
President, Todd Sterck commented: "We are pleased to now be under the jurisdiction of the SEC with full transparency to the investment community. We look forward to be listed on the Bulletin Board and are taking all the necessary steps to accomplish this goal."
FEATURED COMPANY
DND TECHNOLOGIES INCORPORATED (OTC: DNDT)
Detailed Quote: http://www.otcpicks.com/quotes/DNDT.php
Company Profile: http://www.otcpicks.com/Newsletter/DNDT_061510.html
Founded in 1997, DND Technologies is a publicly traded high technology holding company that acquires, invests in, or partners with leading edge technology solution companies and established businesses to bring new or improved products to market. DNDT's core competencies include acquiring or taking strategic financial positions in cutting-edge companies that have synergies in business-to-business and business-to-consumer technology opportunities that are targeted to resolving unmet consumer needs and emergent business domains. is a publicly traded high technology holding company that acquires, invests in, or partners with leading edge technology solution companies and established businesses to bring new or improved products to market. DNDT's core competencies include acquiring or taking strategic financial positions in cutting-edge companies that have synergies in business-to-business and business-to-consumer technology opportunities that are targeted to resolving unmet consumer needs and emergent business domains.
DNDT News:
August 3 - MatchingAds Chooses Virtacore Systems
* Managed Cloud Provider Will Host Fast-Growing Company's Entire Network of Online Classified
* Solutions for Local TV Stations Across the U.S.
MatchingAds, Inc., a subsidiary of DND Technologies (OTC: DNDT), and Virtacore Systems, Inc. announced that Virtacore has been chosen as the exclusive cloud computing and managed services provider for MatchingAds' entire network of online classified solutions. MatchingAds is a full service classifieds solution provider that delivers customized advertising web portals for TV stations in major cities across the U.S. Virtacore Systems, a leading managed cloud provider, will host and manage all aspects of the IT infrastructure required to deliver each of MatchingAds' web portal solutions.
MatchingAds works with local TV stations to augment their advertising bases with an increased ability to drive traffic to their respective websites. Their proprietary ad-generation process provides a local media web portal with a high volume of ads. It also includes a proprietary user-verification process eliminating the issues of spamming and illegal content.
Following its successful debut in the Phoenix market in late 2009, MatchingAds is on pace to open additional sites in 2010 in each of the top 20 high density markets or top Designated Market Areas (DMAs), including New York, Philadelphia, Chicago and Los Angeles, which represent about 40% of the U.S. The company chose to move from its current hosting provider to Virtacore Systems to ensure their infrastructure could scale to meet heightened demand.
According to The Yankee Group, Internet advertising is expected to grow more than 100 per cent in just two years, from $21.7 billion in 2009 to $50.3 billion by 2011. "Our TV network customers expect our classified solutions to be always-on and operating at peak performance," said David Pollei, President and CEO of MatchingAds. "With Virtacore, we're confident that our solutions can scale to meet or exceed our clients' expectations even as we expand into other major metropolitan markets. They're a true business partner that's 100 per cent committed to our success — a rare find in the service provider space these days."
Virtacore Systems' Tier 3 Equinix data centers are home to all the servers, storage and network infrastructure needed to support each of MatchingAds' advertising web portals. In order to best meet MatchingAds' clients' wide range of computing needs, Virtacore designed and implemented a hybrid cloud solution using both shared and dedicated resources. In addition, Virtacore provides the full complement of managed services required for day-to-day operations such as systems administration, backups, and software maintenance.
"We're thrilled to have been chosen as MatchingAds' exclusive Managed Cloud Provider," said Thomas J. Kiblin, Founder and CEO of Virtacore Systems. "We pride ourselves in really understanding each client's unique environment so we can deliver the best combination of resources and managed services they need to be successful in the cloud. This enables us to readily adapt to handle MatchingAds rapid growth and dynamic client needs."
STOCKS TO WATCH
HYPOWER FUEL INCORPORATED (OTC: HYPF)
"Up 259.09% in morning trading"
Detailed Quote: http://www.otcpicks.com/quotes/HYPF.php
HyPower Fuel, Inc. is a category-leading company in the energy technology sector, focusing on providing innovative, clean alternative energies through unique methods. Currently HyPower has hydrogen insertion and production technologies and biodiesel production technologies in development and/or in the product commercialization stage. For more information, visit www.hypowerfuel.com.
HYPF News:
October 20 - HyPower Fuel Provides Update on Leading Edge Biodiesel Intensification Process
HyPower Fuel Inc. (OTC: HYPF) announced that it has been coordinating its work effort on the process intensification of its novel biodiesel process that uses minimal catalysts and no water.
Mr. Douglas Bender, President of HyPower, stated that "our professional chemists, engineers and process intensification specialists are very pleased with their advances in inventing an even safer, cleaner, more cost effective and smaller continuous flow reactor for the production of biodiesel. We are confident that we can reduce the residence time of our existing, innovative biodiesel production process to further minimize energy costs with an ever increasing smaller continuous flow reactor."
Mr. Bender went on to say that "we believe that these improvements will make our process the greenest, most cost effective optimized biodiesel process which is exactly what our Asian and North American partners have asked us to create."
ABOUT THE HYPOWER BIOFUEL PROCESS
The HyPower Biofuel process is a cutting edge biodiesel technology that has a number of competitive advantages over conventional biodiesel production methods. The HyPower process uses essentially no catalysts or water to produce or purify the biodiesel produced. All inputs are recovered or converted to saleable products. The capital and environmental footprints of the process should be significantly less than conventional methods of biodiesel production.
NUSTATE ENERGY HOLDINGS INCORPORATED (OTC: NSEH)
"Up 223.53% in morning trading"
Detailed Quote: http://www.otcpicks.com/quotes/NSEH.php
NuState Energy Holdings, Inc., through its wholly owned subsidiary, Commodity Express Transportation, Inc. (CXT), provides truck transportation and third party logistics services. The company has 49% interest in Rentar Logic, Inc., which develops and markets fuel management systems and various other telematics applications for commercial vehicle fleets and distributes a proprietary pre-combustion fuel catalyst that reduces fuel consumption and harmful exhaust emissions for various diesel engines. As of September 30, 2008, CXT's fleet consisted of 87 tractors consist of 47 leased units and 40 owner-operator units with which it has independent contractor lease agreements and 549 leased trailers. CXT operates a freight brokerage and a warehouse operation. The company develops and implements a custom software solution for Averitt Express, a provider of freight transportation and supply chain management services operating approximately 4,000 tractors and 11,250 trailers in approximately 100 countries. This software is a Web-based integration platform that provides the locations and availability of the trucks in all of Averitt's four main operating divisions. Customers The company serves the southeastern United States as both a freight carrier and a freight broker licensed by the U.S. Department of Transportation. Its Amcor transportation business is derived from its agreement with TPS Logistics.
NSEH News:
August 12 - NuState Announces Changes in Officers and Directors
NuState Energy Holdings, Inc. (OTC: NSEH) announced that Richard Hersh has resigned as Chairman of the Board and Chief Executive Officer. Long-standing shareholder Kevin Yates was appointed as the new Chairman of the Board, and George Stevens was recruited as the new Chief Executive Officer.
Kevin Yates has been a shareholder with NuState for seven years. For the past 10 years, he has built new technology companies and repaired troubled ones. He has been actively involved in the Medical IT field for 23 years. He has worked with Global Leaders Cerner Corporation and McKesson, setting up national distribution networks for each of them. Currently, Yates is serving as CEO of three companies and working on the development of a new company specializing in sports analytics. Yates has the drive and passion, along with the commitment to turn companies around.
For over 35 years, George Stevens has been involved in mergers and acquisitions, start-up companies and the restoration of troubled businesses. From 1971 to 1986, Stevens worked for American-Standard, where he rose to President of a division and was a pivotal player in purchase of Trane. He then founded Stevens Information Systems, specializing in information technology, focusing on asset control and fulfillment of retirement plans for individuals of Fortune 500 companies. Stevens currently serves as Chairman or CEO for six publicly- and privately-held companies. Stevens Resource Group, founded by Stevens in 2005, maintains an extensive 'finder' network throughout the United States, Asia, Europe and the Middle East. This allows him to identify emerging markets and investment opportunities through its vetting sources within these regions.
The first plan of action for the new executive team is to re-structure the onerous debt burden and the overly complicated equity positions that prevented the company from attracting new investments. The new executive team has started to arrange additional funding, included in the re-structuring objectives. The team has made progress with initial negotiations with creditors and shareholders and continues to receive positive feedback.
The second priority is to bring the company up-to-date on its regulatory filings to re-establish NuState's listing on the Bulletin Board. Thirdly, Yates and Stevens will develop a strategic plan to focus the company in a new direction involving exciting commercial opportunities.
"As a long-standing shareholder of the company, I fully appreciate the major challenges that our new management team must confront," stated Yates. "We are confident that our re-structuring objectives will be achieved, including the arrangement of additional funding. Through organic growth and acquisitions, we intend to build an aggressive but financially sound business. Our overall goal is to create value for those shareholders that have supported the company through its difficult years."
MOP ENVIRONMENTAL SOLUTIONS (OTC: MOPN)
"Up 145.00% in morning trading"
Detailed Quote: http://www.otcpicks.com/quotes/MOPN.php
MOP Environmental Solutions, Inc. (MOPN) is a publicly traded company. MOP Maximum Oil Pickup is a "cradle-to-cradle" green product that is arguably the most effective oil spill recovery system on the market. MOP Maximum Oil Pickup is an aggressive oleophyllic and hydrophobic (oil attracting and water repelling) sorbent made from recycled and fully biodegradable materials, manufactured using small-scale hydroelectric green energy. MOP's properties are such that it can effectively deal with an oil spill the size of the Exxon Valdez, but is equally effective at cleaning up the oil spill off a garage floor.
MOPN News:
August 12 - MOP Environmental Solutions Obtains Vendor Status From Major Oil Company
MOP Environmental Solutions, Inc. (OTC: MOPN) announced that on August 9, 2010, one of the world's largest oil companies, whose name we are unable to disclose without violation of their press release disclosure terms, has accepted MOP Environmental Solutions, as a vendor, with issuance of vendor number, internal contact hot line, and the confirmation of its vendor status.
Mr. Charles Diamond, MOP Environmental President and CEO states, "Achieving vendor status with one of the world's largest oil companies was difficult to attain, and a major accomplishment that carries with it, significant long term growth benefits."
"With Bibby Financial Services as our collaborating financial partner we have begun to re-train our sales staff to educate them regarding the offering of better terms to capture large orders from large customer accounts. Our new financial partner, Bibby Financial Services has deep pockets that can really make a difference when going after those larger accounts. We can now take on any size contract since it is unlikely we will outgrow Bibby!" stated Diamond.
CEO Diamond states, "With our confirmed Official Vendor Status with one of the world's largest oil companies that just occurred on August 9th, together with the assurance from our financial partner Bibby Financial Services, we are prepared to service our new accounts in order sizes and order frequencies that without Bibby would be outside the financial scope of MOP Environmental Solutions. We are grateful to Bibby Financial for their exceptional support."
Diamond further states, "Just one facet of anticipated orders are oil cargo vessel spill kits. U.S. Federal Regulation (33CFR Part 155) requires all oil carrying vessels in U.S. waters to have oil spill clean up equipment on board for on-deck spills adequate for a minimum of 7 to 12 barrels of spilled oil. The price of each spill kit ranges from $3,000 to $6,000 to satisfy the minimum requirement per vessel. MOP Environmental's competitively priced oil cargo spill kits offer far superior performance at a lower competitive price to meet the demands of the U.S. Government mandated vessel spill kits. There are currently 3,858 U.S. coastal oil drilling platforms serviced by a far larger number of feeder oil cargo ships and oil tankers subject to this mandated U.S. Government requirement. Working with Bibby Financial Services helps us to capture the business of very large companies since we are able to satisfy their most preferred 60 day payment terms at a low financial cost without any delay in our payment."
NUTRITION 21 INCORPORATED (NASD: NXXI)
"Up 17.35% in morning trading"
Detailed Quote: http://www.otcpicks.com/quotes/NXXI.php
Nutrition 21, Inc., a nutritional bioscience company, develops, markets, and distributes clinically substantiated nutritional supplements in the United States. It focuses on research, development, and commercialization of chromium-based ingredients used in manufacturing multi-component products for the prevention and treatment of metabolic diseases stemming from insulin resistance. The company sells Chromax branded chromium picolinate to vitamin and supplement manufacturers and marketers, as well as directly to retailers for use in human and animal nutrition products. It also commercializes Diachrome as a nutritional complement to medical treatment for people with type 2 diabetes. In addition, the company offers a line of Omega-3 products, including Maximum Strength Omega-3 and Joint Relief Advanced Formula for promoting cardiovascular and joint health. It offers its products through direct response channels, including TV infomercials, radio, print, direct mail, and Internet e-commerce, as well as through retail distribution channel. In addition, it grants patent licenses to manufacturers of vitamin and mineral supplements. The company, formerly known as Applied Microbiology, Inc., was founded in 1983 and is headquartered in Purchase, New York.
NXXI News:
May 8 - Nutrition 21 Reports Fiscal Third Quarter 2008 Financial Results
Nutrition 21, Inc. (NASD: NXXI), the developer and marketer of nutritional supplements under the Iceland Health®, Chromax®, Advanced Memory Formula(TM) and Diabetes Essentials(TM) — brands that help consumers manage blood sugar levels, improve cardiovascular health, enhance memory and reduce chronic joint pain, today announced financial results for the third quarter of fiscal year 2008 ended March 31, 2008.
For the quarter ended March 31, 2008, the company reported total revenues of $10.8 million compared to $15.8 million in the comparable quarter a year ago. The year-ago quarter included a large one-time sale of Selenomax® High Selenium Yeast — without this sale, the year-ago revenues would have been $13.2 million.
The company reported a net loss of $8.2 million for the quarter ended March 31, 2008 or ($0.13) per fully diluted share compared to a loss of $2.2 million or ($0.04) per fully diluted share in the comparable quarter a year ago. Financial results for the quarter were impacted by approximately $3.2 million of one-time expenses, including a provision for inventory obsolescence within the retail business unit, a provision for possible settlements of outstanding litigations, and costs associated with the resignation of the former CEO.
At March 31, 2008, the company had $5.6 million in cash, investments and restricted cash compared to $9.5 million on December 31, 2007. For the quarter, net cash used in operating activities was ($2.4 million).
Total revenues for the nine months ended March 31, 2008 were $36.0 million compared to $29.6 million in the same period a year ago. The company's net loss for the nine months ended March 31, 2008 was $16.0 million, or $(0.26) per fully diluted share, compared to $11.0 million, or $(0.19) per fully diluted share, in the comparable period a year ago.
During the quarter the Company appointed Gerard Butler and Michael Fink as interim co-chief executive officers. Both Mr. Butler and Mr. Fink were executives at Prestige Brands Holdings, Inc., a marketer and distributor of brand name over-the-counter healthcare, personal care and household cleaning products sold throughout the U.S., Canada, and in certain international markets. They previously worked for Block Drug Company. They have extensive experience in the consumer and nutraceutical industry.
Peter Mann, a Director and consultant to the Company, said, "Nutrition 21 has reached an important inflexion point in its development. Over the past 18 months, the company has invested heavily in developing its formulas, its patent positions and its consumer business — both in the retail and direct response business units. All of this accomplishment has come at a significant cost. We are now ready to begin reaping the fruits of that investment. Our new top management has been tasked with achieving positive EBITDA (a non-GAAP measure defined as net earnings before interest, taxes, depreciation and amortization) and positive cash flow while maintaining steady revenue growth. We're pleased with the progress already made after only six weeks and are optimistic that future financial results will show an immediate and significant improvement."
"Our strategic vision," Michael Fink, co-chief executive officer of Nutrition 21, Inc., said, "is to leverage the Company's significant expertise in the direct response business to more aggressively build the Iceland Health franchise. Over the next 12 months, we plan to support the Iceland Health business with strong marketing spends consistent with achieving profitability. Additionally, we plan to introduce new products into the direct response business. As these products prove successful in direct response, we will introduce them into retail distribution. We believe this strategy will generate greater efficiencies from the marketing dollars that we spend, enabling us to successfully create brand identity in a cost-effective manner."
Gerard Butler, co-chief executive officer of Nutrition 21, said, "Over the course of the next six months, we intend to re-brand all of our existing products in the food, mass and drug channels under the Iceland Health name. Iceland Health has developed a strong franchise with consumers over the years, and this represents a significant opportunity for our existing products to benefit from Iceland Health's reputation for quality and consumer loyalty. We believe this is another opportunity to leverage our marketing spend in a more efficient manner. Our expectation is to support the Iceland Health brand in direct and retail channels with strong marketing spending consistent with profitability."
"On another front," continued Mr. Butler, "in the future, we plan to expand our ingredient portfolio with unique formulations. Our customers have a large group of brand name products that feature our ingredients as 'value-added' components, including a number of brands that use our Chromax trademark on their labels. We expect to market our ingredients portfolio on a wider scale and attract more brand name products that can be enhanced by the addition of a Nutrition 21 ingredient."
Mr. Fink added, "With a strong focus on managing cost and increasing operating efficiencies, we expect to successfully drive our products through both the direct-to-market and the retail channels in the most cost-efficient manner with the goal of achieving profitability at the earliest possible date."
Mr. Mann concluded, "While it is the policy of Nutrition 21 not to provide detailed forward-looking financial guidance, the Company believes it is important for all investors to have reasonable visibility into the future outlook for the business. The Company expects that EBITDA will approach breakeven in the June 2008 quarter, while June quarter revenues are estimated to be in the same general range as the preceding quarter. Looking forward to the fiscal year ending June 30, 2009, the Company anticipates relatively stable revenues with consistently positive EBITDA."
XYNERGY HOLDINGS INCORPORATED (OTC: XYNH)
"Up 50.00% in morning trading"
Detailed Quote: http://www.otcpicks.com/quotes/XYNH.php
Xynergy Holdings, Inc. is committed to meeting the world’s growing energy needs while also promoting environmentally conscious business practices and sustainability. Their focus is on promoting global commerce within the realm of a global economy.
XYNH News:
August 12 - Xynergy Holdings, Inc. Acquires Simply Distribution, LLC
Xynergy Holdings, Inc. (OTC: XYNH) (the "Company") announced that it has completed the transaction and acquired Simply Distribution, LLC ("Simply"). Simply is licensed to import and distribute food, beer, wine and distilled spirit products from around the world. Simply is in the final stages of finalizing a distribution agreement with a foreign company to distribute its complete line of Organic Wines throughout the United States. It has completed the design and manufacture of the display racks to place throughout retailers upon the arrival of the first wine shipment.
JC Ley, Xynergy Holding's CEO states, "In addition to the distribution agreement for the organic wines, the company has been working on other distribution agreements and developing trademarks that will be positive additions to the product mix, and create revenues for the company."
LIBERTY STAR URANIUM & METALS CORPORATION (OTCBB: LBSR)
"Up 20.04% in morning trading"
Detailed Quote: http://www.otcpicks.com/quotes/LBSR.php
Liberty Star Uranium & Metals Corp. engages in the acquisition and exploration of mineral properties in Arizona and Alaska. It holds interests in North Pipes Super Project with 1,757 Federal lode mining claims in northern Arizona on the Arizona Strip; Big Chunk Super Project with 707 mineral claims in the Iliamna region of southwestern Alaska; and Bonanza Hills Project with 56 mineral claims in the Iliamna region of southwestern Alaska. The company focuses on the exploration of uranium, copper, gold, molybdenum, silver, and zinc properties. Liberty Star Uranium & Metals Corp. was founded in 2001 and is based in Tucson, Arizona.
LBSR News:
July 8 - Liberty Star Pays out Creditors, Contracts with Northern Dynasty Minerals Ltd.
Liberty Star Uranium & Metals Corp. (OTCBB: LBSR) (The “Company”) announces that it has tendered into escrow full payout to its Secured Lenders under convertible notes issued on May 11, 2007, August 28, 2008, May 21, 2009 and August 14, 2009. Those notes had been declared in default (NR 94). All security held by the Secured Lenders is in the process of being released against payment of the escrowed funds.
In order to pay out its former lenders, the Company has sold 60.7 square kilometers (23.4 square miles out of the Company’s original 177 square miles, or 13% of its Big Chunk and Bonanza Hills acreage) in consideration for both $1,000,000 cash payment and a convertible loan from Northern Dynasty Minerals Ltd. (“Northern Dynasty”) in the amount of $3,000,000. The purchase of the claims and the loan are interdependent. The loan is secured by the Company’s Big Chunk and Bonanza Hills properties in Alaska and accrues interest at 10% per annum.
As part of the transaction noted above, subject to negotiating and signing a definitive earn-in option and joint venture agreement, Northern Dynasty can earn a 60% interest in the Company’s Big Chunk and Bonanza Hills projects in Alaska by spending $10,000,000 on those properties over six years. The borrowings from Northern Dynasty may be applied as part of Northern Dynasty’s earn-in requirements.
Northern Dynasty is a public company trading on the TSX (NDM) and NYSEAmex (NAK) and, together with Anglo American, is a 50% partner in the Pebble Limited Partnership and the Pebble copper-gold-molybdenum project in southwest Alaska. The Pebble property is located adjacent to the Company’s Big Chunk properties.
The Company continues to search for capital so that it can maintain and develop its Arizona properties, as well as the Alaska Big Chunk project.
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