DALLAS, TX--(Marketwire - October 9, 2009) - NewMarket Technology, Inc. (
PINKSHEETS:
NWMT)
today released a letter to shareholders from CEO Philip Verges discussing
the recent announcement of an approximate $2 million debt reduction. The
Company has executed a transaction whereby senior term notes NewMarket
issued in the fourth quarter of 2007 will be exchanged for the issuance of
preferred equity with a new investor. The transaction will also release
all of NewMarket's assets that have been held as collateral under the terms
of the senior term notes since 2007. The CEO has written a letter to
shareholders below and further details of the transaction will be presented
in an on-demand Webcast this coming Tuesday, October 13.
Dear Fellow Shareholders -
The transaction announced today to reduce approximately $2 million in debt
is a substantial milestone. I am optimistic this milestone, ending an
almost two-year agreement with the hedge fund lender, will unlock a major
constraint that has previously impeded the Company's share price from
aligning with the fundamental financial performance of the Company.
In the fourth quarter of 2007, NewMarket entered into an agreement with a
senior lender to provide the Company with a total of $7 million in debt.
The transaction was the Company's most substantial financial transaction in
regard to the amount of money secured to fund growth. The interaction with
the senior lender almost immediately following the consummation of the
transaction was, at best, difficult. Since the agreement with the senior
lender encumbered most of the Company's assets since the end of 2007, and
was further secured by convertibility into stock, the difficulties
encountered following the consummation I believe resonated in the price per
share decline of the Company stock.
Exiting the agreement with the senior lender has been a long and arduous
process that began in the middle of last year when NewMarket paid off a
credit facility that was part of the overall agreement. The global
financial crisis made exiting the Company's largest-ever financial
agreement even more difficult. Nevertheless, by March of this year
NewMarket was able to coordinate a first transaction to eliminate a
significant portion of the remaining balance due under the senior term
notes. With the transaction yesterday, NewMarket has exited the agreement
entered into in the fourth quarter of 2007.
Beacon Equity Research published a $1.42 price per share target for
NewMarket earlier this week. I believe the senior lender agreement, that
NewMarket has now ended, had cast a shadow on the potential of NewMarket's
share price to increase in alignment with the fundamental financial
performance of the Company. I am happy to be out from under that shadow.
Not only does the exit from the senior lender agreement bode well for the
potential share price, it also substantially improves the Company's
operating resources. Please tune in to our on-demand Webcast to be
released next Tuesday to hear more details about this transaction.
Best Regards,
Philip M. Verges
CEO and Founder
NewMarket Technology, Inc.
Corporate Information and E-mail Updates
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Company, please visit
www.newmarkettechnology.com.
About NewMarket Technology, Inc. (
www.newmarkettechnology.com)
NewMarket is a reporting company with audited financial reports filed with
the SEC. NewMarket provides systems integration, technology infrastructure
services and emerging technology worldwide. NewMarket has a focus on
providing technology and support services to rapidly growing economies
where technology purchasing is on the rise. In addition to its base of
operations in North America, NewMarket has operations today in the growing
economies of China, Southeast Asia, Brazil and Northern Latin America. Last
year the Company reported over $40 million in revenue from Asia and over
$20 million in revenue from Latin America. Overall, NewMarket reported over
$95 million in revenue for 2008.
Across the globe, NewMarket is a Microsoft and Oracle partner, distributes
various computer hardware and peripherals from brand partners such as Dell,
HP, IBM, Cisco, Sony, Epson, Canon and Sanyo and is also an authorized
reseller of operating systems and various software from companies such as
Red Hat, Sybase, IBM, BEA, Veritas and others. Additionally, the Company
works with emerging technologies such as mobile computing, various security
and wireless broadband technologies.
NewMarket's rapid growth since 2002 has placed the Company on the Deloitte
Technology Fast 500 for 5 consecutive years. NewMarket was recognized as
the third fastest growing technology company in the United States in 2006
and the number one fastest growing technology company in North Texas for
two years in a row.
"SAFE HARBOR STATEMENT" UNDER THE PRIVATE SECURITIES LITIGATION REFORM ACT
OF 1995
This press release contains forward-looking statements that involve risks
and uncertainties. The statements in this release are forward-looking
statements that are made pursuant to safe harbor provision of the Private
Securities Litigation Reform Act of 1995. Actual results, events and
performance could vary materially from those contemplated by these
forward-looking statements. These statements involve known and unknown
risks and uncertainties, which may cause NewMarket's actual results in
future periods to differ materially from results expressed or implied by
forward-looking statements. These risks and uncertainties include, among
other things, product demand and market competition. You should
independently investigate and fully understand all risks before making
investment decisions.
Contact Information: Contact:
NewMarket Technology, Inc.
Investor Relations
214-722-3065
ir@newmarkettechnology.com