To those interested - letter from CEO just released. (I have been holding for a while).
What a great start in 2004 for Nova Communications, merger
candidate PowerSki International, and all Nova shareholders, partners
and employees. We again want to thank all of you for your ongoing
commitment, support, and interest in Nova Communications.
As I outlined in my last letter, our team has done a terrific job
of restoring value with great growth potential as we work through
finishing up our accomplishments throughout this phenomenal year. A
review of a few topics I would like to cover today include:
PowerSki International Merger
We just recently announced the execution of a further Memorandum
of Understanding to close the merger with PowerSki International, the
designer and manufacturer of the patented PowerSki Jetboard, the
World's most innovative watercraft.
Per the terms of the Memorandum of Understanding, within one month
following completion of Nova's financing, but not later than September
2, 2004, Nova and PowerSki intend to enter into a definitive agreement
wherein PowerSki will be merged into Nova, with Nova being the
surviving corporation. Upon completion of the merger, Nova will change
its name to PowerSki International Corporation. Prior to execution of
the merger, Nova shall complete the remainder of a $2,000,000
financing for PowerSki, for which Nova is presently securing the
funding vehicle (see "financing" below).
PowerSki itself has had a terrific year so far, with many great
things to come. Late last quarter the Company signed a mass
manufacturing contract with the PATx Division of The Hines Group. The
contract provides 75-day credit term financing and full outsourced
manufacturing for 20,000 PowerSki Jetboards, plus an additional 4,000
SuperTorqueXT(TM) engines. With full operations expected to begin in
the first quarter of 2004, the contract is valued at approximately $44
With so many exciting things happening, I must also mention that
PowerSki recently won Best of Show, Waterfront, at the Miami
International Boat Show; and that the Company signed a $1,500,000 deal
with its exclusive Africa distributor. So congratulations to the
On February 4th, we announced the execution of a financing
agreement with Dutchess Private Equities Fund, L.P., based in Boston,
MA. This was a very important development for Nova, in that it not
only provides growth capital needed, but also in the fact that it will
speed the closing of the PowerSki merger along.
Nova's planned use of proceeds is to fund the remainder of the
$2,000,000 financing to consummate a Plan of Merger with PowerSki
International, the designer and manufacturer of the World's most
innovative watercraft -- the PowerSki Jetboard.
Per the terms of the agreement, Dutchess shall invest up to
$20,000,000 in Nova Communications through equity transactions in a
private equity line of credit, good for 36 months. If you're
interested in learning more details about the financing, visit the
website of the Securities and Exchange Commission at
0001200952-04-000074-index.htm. (Due to the length of this URL, it may
be necessary to copy and paste this hyperlink into your Internet
browser's URL address field.)
Over the last several months, Nova has been covered in several
outlets including The Seven Investment Group (www.tsig.org) and Wall
Street Corner (www.****************.com). With all of the exciting
events going on at Nova Communications, everyone seems to want a piece
of the action.
We were also able to secure PowerSki a 30-second advertising spot
on the Limelight Network in 81 movie theaters. The ads featuring the
PowerSki Jetboard in full motion will run in 30-second spots starting
in 81 theaters and expanding into several hundred movie theater
lobbies and other venues as they come on board under the Limelight
Media Group Network throughout 2004.
As always, I want to thank you for your interest in Nova
Communications and PowerSki International. We have had many exciting
events so far this year, and with our management team's commitment,
rest assured that there are many more exciting actions to come. Please
remember to visit http://www.NCVM.net where you can sign up for the
free company newsletter that will provide updates on news and Company
/s/ Ken Owen /s/
Chief Executive Officer
Nova Communications Ltd.