From our CEO
This is a big deal. We just acquired a company in Brazil. It has better financial performance than any company we have ever acquired and we did not issue any new stock to purchase it.
To date, NewMarket has primarily acquired distressed companies and issue Preferred Convertible stock to effect the transaction. Combined with our success and growing the sales of the distress companies we have acquired, NewMarket has managed to build $30 million in positive shareholder equity and $50 million in revenue. In the process, our issued and outstanding has grown to over 100 million shares. While our share price went up from 2002 to 2003, it has trended down since - despite the 2400% revenue growth and 3000% shareholder equity growth.
We believe this acquisition can be the beginning of a reversal. We get a substantial increase in revenue and profit with out further increasing the issued and outstanding.
In addition to not increasing the issued and outstanding, we are also in the process of reducing the fully diluted issued and outstanding. We have begun negotiating with the sellers of the Companies we have previously acquired. We are making good progress at exchanging the NewMarket preferred the sellers originally received with alterative securities in subsidiary NewMarket companies such as NewMarket China and NewMarket Latin America.
We have used stock to aggressively grow the Company. With this acquisition, we are demonstrating that we have achieved critical mass and can continue rapid growth with out continuing to issue stock. By the filing of our 2005 annual report, we will demonstrate that we can reduce the fully diluted. Again, we believe this acquisition can begin a reversal and that we can see the share price begin an upward trend.
NewMarket’s market capitalization is well less than 1 X revenue. Nationally listed comparable technology service company’s have a market capitalization of more than two times revenue with an average negative earnings. I don’t think $1.00 per share is an unrealistic short term possibility. With some of the sales we have in the pipeline, I am optimistic our share price will increase well beyond $1.00 per share.
Thank you for all your support and encouragement over the last few years of this journey.
Best Regards,
Philip
NewMarket Technology Inc Expands Into Brazil with Acquisition of Technology Services Firm Reporting $14 Million in Profitable 2005 Revenue
NewMarket Focused on Revolutionizing Hi Tech R&D Globally with Plans for $25 Million in Revenue from Operations in Latin America and $28 Million from China
NewMarket Technology, Inc. (NMKT: OTCBB) announced today executing an agreement to acquire UniOne in Sao Paulo, Brazil with $14 million in profitable 2005 revenue. NewMarket had previously disclosed the planned acquisition announcing UniOne’s annual sales at approximately $11 million based on UniOne reporting $11 million in audited 2004 revenue. UniOne has recently reported approximately a 25% increase to $14 million in profitable revenue through December 2005 (unaudited).
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