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November 29, 2006
Dear Fellow Shareholders:
We are pleased to report there have been several recent
positive events in the course of business of our company,
and want to share these with you.
Live Tissue Connect
Current status:
We recently finished the duct and vessel sealing prototype
which allows the surgeon to grasp the tissue, allowing
the software program to complete the leak proof seal.
This is the first specific procedure device that has
been taken from our universal device that is capable
of more than 80 different procedures. In early November
we began our second specific procedure prototype device
for end-to-end intestine and end-to-side intestine anastomosis
"reconnection" which will be completed at
the end of March, 2007.
We have currently identified 13 specific procedure
devices, giving us 13 different marketing, manufacturing
and licensing opportunities. The duct and vessel sealer
will be the first device for FDA (510k) and European
CE Mark filing followed by additional devices, as prototypes
are completed. To accomplish the FDA and CE Mark filings,
CSMG Technologies is proud to inform you that Mr. Frank
D'Amelio has joined our Live Tissue Connect, Inc. ("LTC")
subsidiary as a consultant. Mr. D'Amelio brings a highly
successful career spanning 24 years with a major medical
device company, and is internationally recognized as
a prominent figure in the medical device industry. He
has successfully launched more than 200 new medical
device products including "industry first"
technologies, has directed production at 5 manufacturing
facilities, and is the sole or co-author of over 40
medical technology patents or patent pending applications
worldwide.
In addition, Mr. D'Amelio has been instrumental leading
numerous M&A deals valued between $3 and $500 million,
and brings deep experience working with the FDA concerning
510k and PMA filings and approvals. We believe Mr. D'Amelio's
association and participation with Live Tissue Connect
enhances the Company's image and capabilities within
the medical equipment community, and will likely accelerate
our timetable for needed regulatory approvals and subsequent
commercial product launch of our patented tissue welding
equipment in the U.S. and worldwide.
We have had a number of questions from shareholders
about the status of the forthcoming IPO for Live Tissue
Connect, and we want to update you in this regard. Our
plan is to bring the offering to market in late second
quarter 2007. This allows us time to move forward with
regulatory issues, open Eastern European markets and
investigate licensing opportunities coming with various
domestic and international medical device companies.
Finally, you will recall we announced in July we had
retained the services of Empire Financial Group, a well
regarded underwriting firm, to place the Live Tissue
Connect IPO on our behalf for a minimum of $5 million
and an immediate best efforts bridge loan of $3 million.
The relationship with Empire Financial is proving to
be a good one, and to date the Company has received
approximately $2.7 million in gross bridge loan proceeds.
Landfill Gas Purification
Current Status:
As you may know, we own patented exclusive worldwide
rights to the Methane Extraction/CO2 Separation technology-
with most of the equipment being manufactured in Ukraine.
The technology separates carbon dioxide and other impurities
from gas commonly found in landfills and converts the
end product to a methane gas that is up to 98%purity,
depending on raw gas quality. This gas then can be burned
in internal combustion engines, used as a direct power
source for nearby industry, or sold to natural gas utilities.
We finished our first facility in Chastang County,
Alabama, in March of 2003. The landfill is controlled
and operated by Waste Management, Inc. ("WMI"),
but the landfill gas was controlled at that time by
another company: Resource Technology Corporation ("RTC").
To make a long story short, WMI and RTC became involved
in a lengthy legal dispute, in which CSMG was not a
direct party, but was unable to operate the CO2 Separation
System until the matter was resolved.
In December of 2004, we entered into a contract with
WMI to operate the system on the Chastang landfill site.
The agreement was approved in February 2005 by court-appointed
trustee for RTC, and the U.S. Bankruptcy Court; however,
the settlement agreement was appealed by RTC creditors,
and on January 11, 2006, the appeals court refused to
hear the appeal. CSMG signed an agreement with the DuPont
Corporation in February of 2006, to provide up to 500,000MM
Btu per year of gas to one of their plants outside of
Mobile, Alabama. DuPont has recently indicated that
(a.) they are still interested in purchasing the gas,
and (b.) the gas produced does not need to meet national
gas pipeline quality specifications to fulfill their
contract (based on current raw gas analysis, we believe
the gas produced from Chastang will be well above the
required contractual specification).
Waste Management and the Company are currently discussing
the future capability of the Chastang site to produce
sufficient waste gas volume, of the appropriate composition,
to enable the Company's CO2 separator to produce saleable
gas in marketable quantities to our customer. We firmly
believe an amicable and effective solution is a 'win-win'
for both parties, and are working to achieve that end.
If, however, the actions being taken at the site by
WMI are deemed insufficient to support commercial sales
of treated waste gas, CSMG will have no alternative
but to seek another viable landfill site.
As always, we appreciate your loyalty and your support.
And while delays such as the one we have been experiencing
with the methane gas purification technology are frustrating,
they are just that - delays. We anticipate they will
be overcome and will not affect the long term intrinsic
value and earning power behind the technology. We will
keep you apprised as to future developments, both with
our two key technologies, and with new technologies
we may wish to pursue.
Sincerely,
Don Robbins
President and CEO
CSMG Technologies, Inc.
Additional information about CSMG can be found at http://www.ctum.com
or e-mail publicrelations@ctum.com.
Investors may contact Don Robbins or K. Bruce Jones,
CSMG, at (361) 887-7546, e-mail: publicrelations@ctum.com.
Safe-Harbor Statement: Under the Private Securities
Litigation Reform Act of 1995. This press release may
contain forward-looking information within the meaning
of Section 21E of the Securities Exchange Act of 1934,
as amended (the Exchange Act), including all statements
that are not statements of historical fact regarding
the intent, belief or current expectations of the company,
its directors or its officers with respect to, among
other things: (i) the companys financing plans; (ii)
trends affecting the companys financial condition or
results of operations; (iii) the companys growth strategy
and operating strategy; and (iv) the declaration and
payment of dividends. The words may, would, will, expect,
estimate, anticipate, believe, intend and similar expressions
and variations thereof are intended to identify forward-looking
statements. Investors are cautioned that any such forward-looking
statements are not guarantees of future performance
and involve risks and uncertainties, many of which are
beyond the companys ability to control, and that actual
results may differ materially from those projected in
the forward-looking statements as a result of various
factors.
CONTACT:
CSMG Technologies, Inc.
Donald S. Robbins, 361-887-7546
President and CEO
or
K. Bruce Jones, 770-955-0409
or
ROI Group Associates, Inc.
Michael Dodge, 212-495-0744
mdodge@roiny.com
or
Bob Giordano, 212-495-0201
Newsletter Archive:
February 16, 2006
August 3, 2006
November 29, 2006
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