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Due to the number of calls we have received with respect to our association with the largest meat packer in the world - IBP, we are delighted to announce to our shareholder base that, as of last night and today, we have shipped our first load of hogs to IBP. Due to the nature of the agreement with IBP, the number of hogs, where they are being slaughtered, and where they are going is confidential at the moment. We are very excited that these deliveries will continue weekly.
Rhett and I will be out in the Midwest next week to conclude negotiations for acquiring two major corporations and their patented products and bringing them into the Struthers, Inc. portfolio.
We will also be solidifying sales of our pork in the retail market. We are very excited, as this marketing arrangement will give our products a substantial, profitable, position in the retail arena.
We also know that many shareholders are concerned about the first audited financials. Please note that we are on track to have them filed and registered on schedule.
The financials will be filed electronically on Edgars and a news release will be forthcoming with respect to this.
Note that this is just the beginning, as we have structured our business model to impact 10% of hog production in this country alone.
I look forward to updating everyone shortly.
Best Regards,
Douglas Beatty, Ph.D.Wednesday, March 15, 2000 at 15:06:43
TOP | SHAREHOLDER LETTERS | STRU ARTICLES | STRU START | TOP |
Dear Shareholders,
This letter is a partial report on the success of our trip to the Midwest and the Iowa Pork Congress. As I write this note from my hotel room on the southern tip of Antarctica... I mean Minnesota (-40F degrees), I am reflecting on two quotes that I will always remember:
1. "Never forget your gloves!" Douglas Beatty
2. "It's not the strongest of the species that will survive, or the
most intelligent; it is the one that is most adaptable to change." -
Charles Darwin
The Iowa Pork Congress, held in Des Moines, Iowa, is the largest show of its kind. Over forty "genetic" companies were there, all vying for a piece of the enormous "pork pie".
We were very fortunate to be able to showcase our Muscle Master 521 line in pens adjacent to our booth. Our animals were very well behaved and displayed muscle qualities of a 250-pound Arnold Schwartzenpiggie. Many thanks go out to Brent Legred and the Legred Struthers Genetics team for putting together an exceptional display. There is no question as to who had the most popular booth... WE DID! We attracted hundreds of potential customers and investors, and acquired additional sows for our programs. Our programs impressed many producers and I felt very proud to be able to represent our shareholders, our technology and our future. At one point, as a group of producers were discussing buying our genetics, one of the farmers asked, "how do you feel about all the other booths displaying pictures of their boar lines" and about the "competition". Rhett mentioned something that I believe should be etched in stone and placed at the entrance of our new Boar Stud facility, "We have no competitors". It may seem to some as an bold remark, but when you consider what our company has accomplished in the last year, you realize Rhett is right!
None of genetic companies present have the embryo technology that we have... they don't have the latest technological advances... they don't have a comparable Boar Stud facility... they don't have the ability to lower their disease rate using our technology... they don¹t have their own trademarked line of farm fresh pork products that are in demand by packers and consumers... they don¹t have any research going on that will change the way swine businesses operate in the new millennium. Unlike our competitors, we do have it ALL and we are now in a position to announce, through the media, what we have accomplished. It took time, patience and perseverance, but we have achieved what many people said could not be done. Our achievements were possible because: our products and services are truly unique in this industry, we think "outside the box", we care about our employees and shareholders, and we never forget where we started.
As you contemplate your investment in Struthers, Inc., please take time to do what we at Struthers do everyday... look beyond tradition, where opportunity abounds. Opportunity is all around us, but only the adaptive and forward thinking companies will seize the moment and become tomorrow's success stories. One of my key mentors used to repeatedly say to me, "Knowledge is power". To this I add, "Using knowledge, forward thinking, and being proactive is power". We will remember yesterday, design for tomorrow and build for the future and I guarantee that NOBODY will be disappointed, not the farmers, not the packers, and not the shareholders. Our team is excited about the future and we know that you are too; you deserve the best and you will never get anything less.
Remember what Rhett said, "We have no competitors". As a side note Rhett just told me that the word "TenDurChoice" should be etched on my tombstone because it will soon become a household name. Soon, you will all know "why" we have made these bold statements with such confidence.
Have a great warm weekend. Enjoy your time with family and friends, knowing that tomorrow will bring much excitement.
I truly remain respectfully yours,
Dr. Douglas Beatty, Ph.D. CEO President
P.S. Please remind me to pack my gloves when I come back to Iowa and Minnesota in February.
Friday, January 21, 2000 at 15:15:17TOP | SHAREHOLDER LETTERS | STRU ARTICLES | STRU START | TOP |
Friday, January 14, 2000
As promised, I intend to communicate regularly with all shareholders of record and the many folks who have shown a great interest in Struthers, Inc. First, we would like to thank you so much for your wonderful e-mails, letters, and phone calls. We have grown tremendously over the last few weeks from a substantial core group of investors to a huge shareholder base. And to those whose "due diligence" has taught the new investors about our industry... I thank you!
The question of the day is: "Where are the PR's?". Obviously, PR¹s are important to the growth of your company. We are in a very competitive industry and make every effort to release news in a planned sequence. This is not only for the best advantage to your company, but so that all the pieces of the puzzle make sense. Out of professional respect to our clients and shareholders, we welcome your opinions as to the best timing for events and news. All this is taken in consideration as to "when" and "why" a PR is released.
Yesterday I worked quite late and stayed up most of the night thinking about the business of "what" Struthers stands for, how we make decisions and why we make those decisions. In short, "why we do what we do".
Two events happened recently, which confirms that Struthers, Inc. has a great business philosophy:
1) Many shareholders have repeatedly stated that they have never seen a company like Struthers, Inc., who cares so much about their shareholders and clients. Based mainly on the fact that we would not let up until we achieved what we have always stated and maintained in our belief systems, TO LEAD!
2) I picked up my 11-year-old daughter from the Charleston Prep Orchestra for which she plays first violin. She asked me how my day went. After telling her about the different things I did at Struthers, I asked her why she plays her violin with so much enthusiasm and compassion. Her thoughts mirror our corporate beliefs. She stated emphatically that she uses her "bow" and "strings" as an extension to reach those in the audience who otherwise would never have a chance to hear the compassion that the composer wrote and intended for the audience to hear. She also stated that she works so hard on her music for the audience in effect her client or shareholder base.
To use the analogy, our bow is rosined up and the conductor is ready to conduct! We have a superb genetic base, the Boar Stud facility is nearing completion, the Struthers Certified TenDurChoice line is taking off, and we're ready to proceed to new levels! Rhett and I, and a host of other business professionals have developed this company from scratch into a company that everyone can be proud of.
I look forward to updating you after our visit to Minnesota, Iowa and the Iowa Pork Congress next week, where we are delighted that our Muscle Master 521 line is going to be showcased in their booth.
Thanks for all your help in generating a Winning Combination!
With sincere respect and warmth,
Douglas Beatty, Ph.D.
CEO/President
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Friday, January 7, 2000
Message from the CEO President of Struthers, Inc. Dr. Douglas W. Beatty
WOW! What a great start to the New Year!
Just a quick note to the hundreds of team members who took the time to e-mail Rhett and myself with respect to your company¹s performance.
Our Financial Public Relations firm of Price and Associates has initiated an outstanding line up of releases and interviews for the beginning of the New Year. The most recent interview with Wall Street NewsCast, Inc. was unprecedented. Normally they receive between 30,000 and 50,000 hits per day to their site. After our interview they received over 107,000 hits. We have decided to continue a relationship with this group consisting of front page exposure, editorials, monthly live broadcasts and constant newswire releases. Their site is reviewed by industry analysts, brokers, shareholders, and potential investors for corporate information.
Struthers, Inc., has been built on a foundation of integrity. Everything we do, we do in the best interest of the company and its shareholders. As I've stated before, excellence is mandatory... I will not accept anything less.
Thank you and warm regards,
Douglas W. Beatty, Ph.D. CEO - President
Friday, January 7, 2000 at 13:08:32
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December 30, 1999
Dear Shareholders,
Those who have visited our office here in Charleston may have noticed the sign above my desk, which reads, ³Excellence is Mandatory². The new sign for the next Millennium reads ³ Quality and Excellence are Mandatory². At Struthers, Inc. this is not a New Years resolution it's what we are!
I cannot emphasize enough how proud we are to be working for you to help build your company. In fact, using the word "work" is not applicable here this is too much fun!
To the new and longtime investors of our great company, we extend our thanks for your generosity, time, commitment, and patience in making STRU the leader.
Last night, while working late, I received an e-mail that I would like to comment on and share with all of you.
It read:
"To: Dr. Douglas Beatty
President, Struthers, Inc.
We are confident that your commitment and integrity to the company is beyond any question and that all the long hours of hard work throughout so many months are starting to pay off.
We, the Shareholders, feel like you're sending us a message as to where we're going next. The message is received loud and clear, no doubt it is raising eyebrows everywhere.
On behalf of many shareholders, I thank you and the people at STRU Headquarters who have worked along with you to make this company what already is a Great Success!
You did not disappoint us when you stated that we were going to have an exciting Holiday Season, and we appreciate that.
Hats off to you and the STRU staff, Happy New Year!"
I certainly appreciate all the correspondence with everyone showing interest in STRU, and must comment that:
1. We are deeply moved by such letters, and 2. Support from shareholders, brokers and others, is uplifting and has given us the feeling that we are making a difference in peoples lives worldwide.
However, here at the home office and at our breeding and boar stud facilities, we owe our shareholders a debt of gratitude and we stand in an ovation to you... the members of our unstoppable team!
1999 has been a great and exciting year for all of us. When that ball drops in Times Square to mark the millennium, you¹ll know that the best is yet to come!
From all of us at Struthers, Inc. to all the shareholders, families and friends, we wish a happy and healthy New Year.
With my deepest respect,
Douglas W. Beatty, Ph.D.
President/CEO
Struthers, Inc.
P.S. In addition yes, the answer to the $64,000 question is YES. The pigs are Y2K compliant.
Thursday, December 30, 1999 at 14:55:29TOP | SHAREHOLDER LETTERS | STRU ARTICLES | STRU START | TOP |
Thursday, December 23, 1999
Best Wishes from CEO, Struthers, Inc.
Dear Shareholders,
Upon turning on the computer terminal this morning, I was hit by many interesting headlines: Hotel Reservations for New Years Eve down! Unemployment down! Long distance calling down! Everything is down, except for the cost of New Years Eve babysitters and the value of Struthers, Inc. shares, which are both up significantly. I am very proud to be a associated with such a remarkable group of shareholders, whose generous support over the past few years has been inspiring.
If I may quote an e-mail I received from a long time supporter of Struthers, Inc.; his comments are well worth repeating ³Doug, April and May, things started to change. What I heard about over the last eight months was being realized. Later in the year, we came to visit you in South Carolina, taking advantage of your generous open door policy. As far as the share price goes, it's up 2,000% since I bought in March. It¹s up 500% since I bought in May. It¹s up 100% since I bought last week! Doug, I don¹t know exactly what you meant when you said I was going to have a Merry Christmas, but I have a feeling it will be.²
Hundreds of e-mails have been received with the same thoughts.
Now it¹s time to publicly thank everyone for making this a very special year for Struthers, Inc. It's a great feeling to know that we enter the next millennium with a large base of active shareholders, whose numbers have increased dramatically in recent weeks. Everyone at the home office is absolutely thrilled with the company's progress, but we have really only just begun.
The year 2000 will be Your Company's year! Being 1st is always a challenge, as others will always be nipping at our heels, however, I will accept nothing less for our shareholders. Nor should you accept less from all of us at the home office and our Legred Struthers Genetics, Inc. subsidiary.
From all of us, we warmly thank you and wish you and your family a happy and safe holiday season and a very prosperous New Year. Please take some time to remember those who are less fortunate and those that will be on duty around the world and cannot be home for the holidays.
Our deepest respect and thanks for making Struthers, Inc. the masterpiece it is.
Douglas W. Beatty, B.Sc., B.Sc. (Hon), Ph.D.
President - CEO
Rhett Seabrook, B.Sc.
Vice President of Operations
Struthers, Inc.
Thursday, December 23, 1999 at 18:03:30
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Struthers, Inc. Begins Construction of New Boar Stud Facility in Minnesota
Charleston, SC., November 18, 1999 -
- Struthers, Inc. (OTC BB: STRU) began construction on a new stud boar facility
located in Wells, Minnesota.
Struthers, Inc. has contracted with the
building firms of Tolzmann Construction and Courtland Industries of Minnesota to
construct the 1500 stud boar facility.
Construction will be completed in
the first quarter of 2000. The facility will include two buildings, each housing
Struthers’ elite boars, state of the art automated semen collection equipment,
packaging laboratory and sterile operating rooms.
When fully operational
the boar stud unit will produce over 1,800,000 doses of genetically superior
semen per year. This is enough semen to inseminate 450,000 sows twice per year.
Stud boars are now ready to enter the unit and semen production will begin
immediately upon completion. Gross revenue projections within the first year of
full operation from semen sales alone will approach
$14,000,000.
Struthers, Inc. is capitalizing on the growth and technical
innovations in Artificial Insemination and through its superior line of genetics
will expand its market share worldwide in semen sales.
Artificial
Insemination in the United States, Canada, and Mexico is currently at 48.5%.
Industry analysis at the 4th International Conference on Boar Semen Preservation
(Beltsville, MD. August 1999) reported that Artificial Insemination use would
increase over natural breeding to 80 to 85% by the year 2001. *
To see an
overview of the Company visit our Web Site at:
www.struthersinc.com
*
Compiled from information reported by National Pork Producers Council,
USDA, Canadian Pork Council, and Statistics Canada.
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Struthers, Inc. Business Model-Summary
Struthers’ business model is to create a “win-win-win” situation. The
swine producers benefit, the packers benefit and the shareholder benefits.
Through our alliances with our solid customer base and swineherds, Struthers,
Inc. will supply semen, embryo transfers, breeding gilts, boars and our feed
protocols to selected accounts. The swine producers then raise the animals,
which are then sent to specific alliance packers who pay a premium for the
consistent carcass quality.
Through these marketing alliances we will be in a position to capture 6%-10% of
all market hog sales in North America within 24 months.
Through the formation of our alliances we will be a dominant profitable
competitor in the porcine industry.
Best regards and thank you for supporting the company.
Know what you hold… it has exceptional value.
Douglas Beatty, Ph.D.
Pres./CEO
Struthers, Inc.
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Research Investment Group Initiates Investment Opinion on Struthers, Inc. With a 12 Month Price Target of Over $2.00 Share CHARLESTON, S.C.--(BUSINESS WIRE)--July 22, 1999--A significantly undervalued biotechnology company with a unique new embryo transfer technology available to pork producers, who can now apply genetic engineering to help in producing lean, healthy, low-fat pork products; STRU projects 40% profit margins in a US$4+ billion dollar industry; based on achieving a 3% market share. Struthers' has a three to five year lead over its competitors!! ABOUT THE COMPANY Struthers, Inc. (OTC BB:STRU - news) is a biotechnology company focused on commercializing swine embryo transfer technology to sell its genetics worldwide. By combining its technology with the healthiest and highest-quality swine herds in North America (which, incidentally, are owned by STRU!!), Struthers is now able to market extremely lean, high quality animals to pork producers anywhere in the world. A FEW FACTS ABOUT PORK Most people are surprised to learn that pork is the largest source of meat protein in the world, with annual sales running about US$200 billion! In society's quest for healthy foods, low in fat and cholesterol, people have turned to chicken and fish. People have traditionally thought of pork as a fairly greasy and fatty meat. We think that people's perceptions about pork are about to change, and that they are going to change in a big way. Soon, the Struthers' name is going to become synonymous with a new healthy, low fat protein source - pork! Recently announced independent test results by Iowa Ham Canning, Inc. (regarded as one the largest private label processors of hams in the United States) prove conclusively that Struthers' pork is far superior to any other product offered anywhere in the world in terms of meat quality, color and leanness. The ham yield for each Struthers' pig was 59% - far above the industry-average yield of 48%. The average fat content of the STRU animals was a mere 1.2% compared to the industry average fat yield of 12.5%. Among the many other desirable world-class attributes of the Struthers herds are: consistently high yields of choice cuts of lean meat, reduced days to market (resulting in higher profits and reduced costs to hog producers), and, larger, healthier hogs (currently, the various swine diseases cost the pork industry up to 30% of its profits). The result of tests by Iowa Ham and other independent groups prove conclusively that STRU can consistently produce genetically superior swine and thus a much higher quality meat. WHAT'S NEXT FOR STRUTHERS? In a collaborative effort with the University of Missouri, STRU has recently begun training and certifying surgical technicians and veterinarians in the Struthers embryo transfer technology process. This is a major step in the commercialization of STRU's technology. Upon completion of the training process, Struthers will be able to work directly with its customers in producing and reproducing the highest quality swine herds. Remember that Struthers is the only company commercializing this revolutionary technology - STRU's competitors are at least three years behind in getting competing technologies to market. The icing on the cake is the fact that Struthers has acquired a world-class pedigree great-grandfather swine herd in North America, from which it will supply genetically superior hog embryos to clients worldwide. We understand that Struthers is very, very close to signing and announcing at least one, and possibly two (or more) major contracts with major international pork producers and suppliers of breeding stock. All indications are that STRU will be booking revenues by the first quarter of the year 2000.
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Summary of Struthers, Inc. forecasted annual net sales revenues from the alliance: (All figures in US$)
Year 1 | Year 2 | Year 3 | |
Embryo Transfer | 750,000 | 2,000,000 | 6,000,000 |
Semen | 1,114,750 | 2,866,500 | 5,010,000 |
Sale of Gilts | 2,674,000 | 6,876,000 | 12,018,000 |
Yield Premiums | 3,750,000 | 8,750,000 | 16,500,000 |
Total |
8,288,750 | 20,492,500 | 39,528,000 |
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THE FUTURE FOR STRUTHERS, INC.
The North American hog market alone is capable of providing the bases for many
alliances such as the one outlined above. The current management and Board of
Directors of Struthers, Inc. are aware of both the opportunities and the risks
associated with growth that is too rapid to be efficiently absorbed within the
current corporate structure and capabilities. It is most encouraging to find
that the current management has identified these business segments, the
opportunities within each as outline above, and the management and the financing
needs to effectively bring this all about.
It is not difficult to see estimated net sales revenues from all revenue
sources, within 18 months to two years, being in excess of US$35,000,000. The
North American hog slaughter is currently running just under 120,000,000 hogs
annually. The annual sales revenues from the producer/packer/further processor
alliance alone, outline above, are estimated in excess of US$20,000,000 in year
2, and involve just under 2,000,000 market hogs annually.
This is approximately 1.5% of the North American slaughter. Each additional 1%
of the market gained is therefore equivalent to approximately US$16,000,000.
The value of the alliances, combined with the other opportunities identified
with the miniature hogs, the research programs associated with the cryogenic
embryo storage, and ventures with international partners, Struthers, Inc. has
the potential to achieve annual revenues of US$50,000,000 within three to four
years.
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Thursday December 16, 10:58 am Eastern Time
CHARLESTON, S.C.--(BUSINESS WIRE)--Dec. 16, 1999--Struthers, Inc. (OTC BB: STRU), announced that construction has begun on a new stud boar facility located in Fairbault County, Minnesota.
Struthers, Inc. has contracted with Tolzmann Construction, S&R Manufacturing, Inc. and Courtland Industries to construct the facility to be completed in the first quarter of 2000.
The buildings will house the Legred Struthers Genetics Pureline(TM) elite boar studs and a third adjoining building will house state-of-the-art automated semen collection and packaging laboratory and embryo collection operating room.
When fully operational, the boar stud facility will produce over 1,800,000 units of genetically superior semen per year. Gross revenue in the first year of operation is projected to exceed $14,000,000.
The new facility, along with the recently acquired subsidiary Legred Struthers Genetics, Inc., will propel the growth of Struthers to one of the largest commercial boar stud operations and suppliers of superior genetics in North America.
Struthers, Inc. plans to capitalize on the growth and technical innovations in the artificial insemination industry through its superior line of genetics and expand its profitable market share in semen sales with the new and existing Boar Stud Facility.
Current breeding, through Artificial Insemination in North America, accounted for 50% of swine production. Forecasts from The IV International Conference on Boar Semen Preservation (August 98) predict Artificial Insemination usage to increase, over natural breeding, to greater than 80% by the year 2001.
For further information on the Company visit their web site at http://www.struthersinc.com .
Struthers, Inc., Charleston Rhett Seabrook, 888/400-8810
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Artificial insemination is currently the leading genetic selection tool available to swine breeders and producers. While of enormous practical benefit to genetic advancement, the use of artificial insemination alone for the introduction of new blood lines, requires a seven-year period of repeated breeding to fully incorporate a new genetic line into an existing herd. In contrast, the use of Embryo Transfer technology enables the complete transfer of a new genetic line in a single step. Struthers Inc.(SI) is the world's leading source of swine embryo technology and service. Until now the swine industry has been unable to successfully start a commercially viable embryo transfer process as an alternative method for use in the selection, transport and sales of improved swine genetics. The members of the SI team have staked their lives and reputations in achieving the dream of a commercially viable transfer system for swine. In conjunction with Dr. David McLennan, Struthers developed a swine embryo transfer process that will unilaterally redefine the manner by which all future swine genetic sales will be made. The success of our embryo transfer process for the transatlantic shipment of Struthers' genetics to the Czech Republic has verified the practical usefulness of the technology and redefined expectations within the industry. Struthers ability to provide embryos from genetically superior, high-health status nucleus swine herds, for transfer to recipient sows located anywhere in the world, will virtually revolutionize the manner by which future swine genetics sales will be conducted. Embryo transfer provides a complete genetic package to the purchaser, resulting in rapid genetic upgrading at the lowest possible cost and risk of disease transmission. Our exclusion embryo transfer system eliminates the need for live animal transport, creating the safest possible method for genetic exchange without risk of disease transmission. Embryos are considered to be the safest agent for domestic or international exchange of livestock genetics. With over twenty years of service in the dairy industry not a single case of disease transmissions has been linked to the commercial transfer of embryos. The embryo's ability to act as a safe agent for genetic exchange is found in a protective covering completely surrounding the early embryo. This covering forms an impenetrable physical barrier between the embryo and all potential pathogens. As bacteria and viruses cannot pass through this natural barrier to infect at the stage of transfer, the risk of disease transmission is reduced to its lowest possible level. Embryo transfer can be additionally use to ?clean? valuable genetic lines of swine, which have become infected with disease causing pathogens. Embryos recovered from infected donors can be washed and transferred to clean recipients, thus breaking the disease cycle and producing pathogen free offspring, fully of the genetic composition of the donor line. The embryo transfer cleaning process can rescue superior genetic lines of swine thought to be lost because of pathogen infection. Embryo transfer is the only completely safe method for the exchange or sale of swine genetics around the world. Swine industry demands for accelerated genetic advancement will be met by the safe and cost effective Struthers Embryo Transfer process. Embryo transfer will become the principle commercial vehicle genetic sales and exchange in the swine industry. Embryo transfer technologies will additionally lead the way to new and innovative breeding strategies for the direct selection of lean high quality pork. By utilizing the combined benefits of Struthers superior genetics and embryo transfer technology, profitability is increased while the risk of disease transmission is reduced, ensuring a more profitable and equitable bottom line.
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From Dr. Douglas
Beatty, Ph.D., President & CEO, Struthers, Inc. |
October 29,
1999
Dear Shareholders,
In response to questions brought to my attention with respect to the
recent newsletter, I would like to take this opportunity to clarify and
discuss where Struthers, Inc. is headed, and what the benefits are to
you.
In January of this year when the company was reorganized we identified
what Struthers, Inc. needed to do to evolve as a world leader in swine
genetics and we went out and addressed it. Our mission statement was
changed and redefined as “Struthers…Solutions to the problem”.
Embryo transplantation and the “washing” of the embryos virtually
free of disease was the “first piece of the puzzle”, and has now
been integrated into the Struthers “solution” to develop, maintain
and disseminate some of the world’s finest porcine genetics.
We are in the position where embryo transplants will be used to produce
low disease incidence commercial boar studs to reduce the disease
transmission regularly associated with fresh extended semen. It now
allows our clients and contracted alliance herds of breeding stock to
acquire world class genetics.
The day has arrived where we can harvest viable embryos, pack them into
a briefcase size incubator, walk onto an airplane with a “herd” of
up to 10,000 embryos and take them anywhere in the world (ref: Hogs
Today, November 98. Copies are available from our office or visit the
company's web site at www.struthersinc.com).
What we have accomplished since January with our porcine genetic
technology and the growth of the company is absolutely unprecedented in
this industry.
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Alliance with LSG/Norsvin Genetics
With our new subsidiary Legred Struthers Genetics, Inc. and LSG/Norsvin we
now have the opportunity to benefit from an established customer base of over
7,000 clients. What this means to your company is that we now have a major
profit center capable of expanding to meet market demands on a consistent basis.
Consistent carcass quality and availability of animals is exactly what the
packing plants have been asking for.
Through our new subsidiary we now have immediate international presence and
access to superior genetics throughout Europe. We no longer have to look back at
what the others are doing…they, are watching us!
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Building of Stud Boar Unit
Our current Stud Boar facility will house 400 boar studs, with additional
permitting to increase to 1,500 over the next two years. The boars will be
allocated from our existing Great Grandparent Herd and within 6 months we will
be at full operation. Each boar produces roughly 1200 doses of semen per year
multiplied by 400 equate to production of 480,000 doses of semen per year. The
current LSG/Norsvin stud boar unit that is fully operational is producing
120,000 doses per year. Embryo transplants, and semen sexing will develop boars
for this facility at an accelerated reproductive rate.
I hope you can now understand why we call AI - artificial insemination a very
“profitable” profit center. For further review please see the marketing
analysis completed by A.H. Beswick. Copies are available from our office or
visit the company's web site at www.struthersinc.com.
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Dear Shareholders,
The following is the October issue of the Struthers,
Inc. newsletter. This
newsletter will also be available on the Struthers,
Inc. web site at the
following address:
http://www.struthersinc.com/html/News-PDF/Oct1999.pdf
The
Beswick Marketing Evaluation, which was included with the postal mailing
of
the newsletter, is also available on the Struthers, Inc. web site at
the
following address:
http://www.struthersinc.com/html/News-PDF/BeswickReport.pdf
***
From the Desk of the Directors of Struthers, Inc. ***
George Bernard Shaw
once wrote, "We are all dependent on one another, every
soul of us on earth."
No individual ever built a corporation. One person may
have had a dream or
idea but every corporation has been built with the
cooperative efforts of
many individuals.
Struthers has succeeded by cooperating and working with
many individuals,
without whom we could not have executed our action plan
successfully. As a
team we have created a new vision for this company, set
new goals, planned
for its achievement, gathered many pieces of a great
puzzle, put them in
order of importance, prepared for action and then took
action!
As you have followed our success over the last year, you have
seen that we
have progressed with exciting upside growth potential. As
Directors we are
constantly using this stairway to success to build this
business through:
- Forming business alliances through preparation and
planning.
- Identifying and executing future growth plans in the swine
industry.
- Making decisions that count and fulfilling our commitment to
the
shareholders.
We believe, "it's not where you start, it's where
you take it that makes all
the difference." We have assessed the swine
industry thoroughly and we have
worked on the principal that just because you
can't see it does not mean
that it is not out there. We are not just waiting
to see where the future of
the swine industry is headed; we are defining it
through the implementation
of our innovative solutions!
This
newsletter contains what you, the shareholders, have been waiting
for...
identification of profit centers: alliances through our new
subsidiary,
research of new advanced technology previously unavailable in
the swine
industry, personnel capable of quick innovative growth, and the
best swine
genetics available in the world today. Together, we will take
Struthers into
the next Millennium as a strong dominant profitable
competitor, utilizing
carefully thought out strategies to guarantee that
everyone from the farmer
to the shareholder becomes a winner.
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*** Alliance with LSG/Norsvin
Genetics ***
The Company is pleased to announce that Legred Genetics Inc.,
parent company
of LSG/Norsvin, has entered into an agreement with Struthers,
Inc. to become
a part of Struther's wholly owned subsidiary to be known as
Legred Struthers
Genetics (LSG). Legred Genetics is currently valued at over
$5.2 million.
LSG/Norsvin's 3700 stud boar, sow and gilt operation has in
excess of 7000
customers with ongoing sales agreements for semen, stud boars,
and gilts.
LSG/Norsvin markets its swine-breeding program worldwide through
artificial
insemination and nucleus breeding animals. LSG/Norsvin is noted
for being a
leading international genetic development company selecting and
breeding
swine for lean muscle, faster growth, lower feed conversion, and
leaner
carcass. The animals consistently average over 60% lean meat content
in less
than 140 days.
The current staff structure lead by President
& geneticist Brent Legred will
remain in place while Struthers will
increase the sales and marketing force
to meet expanding market demands.
LSG/Norsvin's agreements with Norway's
largest swine genetic company,
Norsvin, will remain in force and provides
Struthers with the unique
opportunity for an immediate international
presence.
*** LSG/Norsvin
Recognized By The National Pork Producers Council ***
The LSG/Norsvin Company
was recently recognized by the National Pork
Producers Council as producer of
the top percentage lean muscle volume pigs
in the nation. The National Pork
Producers Council evaluation was taken from
26 of the nations largest packing
plants, the top winners were recognized
from each of the 26 plants, they then
compared the top hogs from each plant
against each other. The LSG/Norsvin
pigs captured top honors overall with a
significant advantage in ham, loin,
and percentage lean muscle.
*** Stud Boar Unit To Be Built ***
Due to
the increase in demand for superior low disease incidence semen and
the
dramatic rise towards the use of Artificial Insemination (AI), the
Company is
building a Boar Stud Facility in Minnesota that will initially
house 400 A1
genetically superior Struthers stud boars. The facility will
contain a
laboratory, storage units and automated packaging equipment for
the
processing and sale of semen. The site has been approved for up to
1,500
boars for future expansion. The new facility, along with the alliance
with
LSG/Norsvin, will increase the growth of the Company to one of the
largest
single commercial stud units and semen providers in North
America.
*** Embryo Transfers Begin ***
In order to expedite the
growth of our new boar stud unit, Struthers will
utilize its own unique
Embryo Transfer System combined with new semen sexing
techniques to transfer
sexed embryos from superior pedigree gilts to
recipient sows. The production
of all male or female prodigies is a major
advance in the industry. The
procedures will be performed at Hoveland Farms.
*** Artificial
Insemination In The Swine Industry ***
Artificial Insemination (AI) in the
United States, Canada, and Mexico is
currently at 48.5%*. Industry analysis
at the 4th International Conference
on Boar Semen Preservation indicated that
AI use will increase over natural
breeding to 80-85% by the year 2001. In
1999 an estimated 3.9 million sows
were inseminated which equates to 25
million inseminations per year. The
data was based on 56% current AI usage at
6.5 doses per sow per year.
Struthers, Inc., with its superior line of
genetics, plans to capitalize on
the growth and technological innovations in
the AI industry and expand it's
profitable market share in semen sales. The
projected growth of this crucial
profit center is outlined in the Beswick
Report. The Company offers several
benefits to the swine producer that
includes; decrease cost of having to buy
and maintain stud boars, access to
superior diversified genetics as well as
improvements in collection, storage
and application that improve semen
viability and pregnancy rates.
*
Statistics compiled from information reported by National Pork
Producers
Council, USDA, Canadian Pork Council, and Statistics
Canada.
*** Market Evaluation Completed ***
A.H. Beswick &
Associates of North York, Ontario, has completed the market
evaluation on
Struthers, Inc. The marketing report reflects the current
Company business
model including the subsidiary of Legred Struthers
Genetics(LSG). The
financial projections are for the next three fiscal
years.
Beswick
states, "Struthers, Inc. is primarily involved in the marketing
of
technologies associated with the hog herd genetics and the development
of
sector alliances assembled to maximize the positive economic impact of
the
improved hog genetics." Beswick concludes, "In today's highly
competitive
processed pork market, consistent increased lean meat yield from
primal pork
cuts is a major objective of pork processors." The marketing
analysis
forecast annual net sales and revenue from alliances:
Year One:
$8,288,750
Year Two: $20,492,500
Year Three: $39,528,000
The condensed
Beswick Marketing Evaluation on Struthers, Inc. is enclosed.
The complete
report is available upon request from the administrative office
in
Charleston, SC. and will be posted on our Web Site.
*** International
Conference on Boar Semen Preservation ***
Held in Beltsville, MD August 8-11,
the conference covered all aspects of
preserving boar semen, both frozen and
liquid. The conference hosted over
300 delegates from over 20 countries. Dr.
Lawrence Johnson of United States
Department of Agriculture / Agricultural
Research Services said, "This
steady growth of interest in the preservation
and artificial insemination
(AI) of Boar Semen is a reflection of growth in
the AI industry particularly
in the past five years." Dr. Douglas Beatty, Mr.
Richard Seabrook of
Struthers, Inc. and Mr. Brent Legred, President of
LSG/Norsvin attended the
conference. While at the conference, the Directors
of Struthers discussed
possible collaborations and viewed new technologies
for use in the
preservation of semen and non-surgical implantation of
embryos, which will
enhance our defined profit centers.
*** Grand
Champion Market Hog ***
At the prestigious 1999 Upper Mid-West Multi-State
District Swine Show a
member of the LSG/Norsvin team, Justin Olerud won
overall Grand Champion for
Performance Market Hog. LSG/Norsvin and Struthers,
Inc. would like to
congratulate Justin Olerud for winning the Grand Champion
for overall
performance. Justin's LSG/Norsvin market gilt ranked #1 in all
four
categories evaluated:
#1 average daily gain
#1 percentage
of lean carcass
#1 muscle quality and composition
#1 live
show
In the words of Judge Al Snedegar, Michigan State University Animal
Science
Department, "Everyone take a good hard look, this is the best
looking
performance animal that I have judged all summer." LSG/Norsvin pigs
were
also very well represented by having the overall Grand Champion
4-H
Performance Barrow for the second straight year at the Minnesota State
Fair.
With swine of this consistent genetic quality, you can see why
Struthers,
Inc. is very excited about our new LSG/Norsvin line of animals and
semen. We
are the future of swine production worldwide.
*** SPHC Herd
To Aid In Development Of New Genetic Lines ***
The recently acquired SPHC
herd in Canada will continue to play a major role
in the ongoing development
of new lines of superior and valuable genetics.
SPHC will aid in the
identification, development and production of new lines
of genetics from
England, Ireland, and France. The new lines will allow
Struthers, Inc. to
remain a world leader in the genetics business, improving
its already
superior lines and adjusting to the continually changing swine
market as
needed.
*** Research Grant Program ***
Struthers, Inc. has submitted
to the USDA/SBIR the first of several grant
proposals for the creation and
commercialization of a Low Disease Incidence
Miniature Swine Unit for the
sale of animals to researchers, medical
facilities and pharmaceutical
companies. Phase one will enhance the
viability rate of harvested embryos
using our embryo washing media.
Anticipated results of Phase One is to
further enhance our development of
swine embryos that are virtually pathogen
free and whose viability rate
increase the likelihood of pregnancy and
produce larger litter sizes. Phase
Two of the project is the development of a
specialized low disease incidence
breed of hog for research sales. The
Company has the collaborative efforts
of top swine academics and State
agencies and through our meetings with
major research centers, have confirmed
a large commercial demand.
*** New Team Member ***
Vanja Boljanovic
joined the Struthers Team as our Administrative Assistant
on July 6, 1999.
She brings with her an extensive background in the
administrative, financial
and managerial fields, together with customer
service experience. We welcome
her to Struthers. She has already proven to
be a valuable
addition.
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A message from Dr. Douglas Beatty, CEO, Struthers, Inc.
Our filing of Form 10 and related financials represents an important
milestone for the corporation. It establishes a publicly available file
on Struthers, Inc. with the SEC. This registration document should
better position us to generate greater market interest from both
the domestic and the international financial communities. In addition, we
look forward to disseminating detailed financial information about the
corporation to keep our investors and other interested parties informed
about critical corporation developments.
It's a particularly exciting time at Struthers, Inc., as we continue to
pursue our strategy of providing leading porcine genetics. Our recent
acquisition of Legred Genetics, Inc./Norsvin, the formation of our herd
alliances, the research and development of non-surgical embryo transfers,
and our enhanced semen delivery system (to be introduced by us at the
World Pork Expo - June 2000) demonstrates our commitment to our
shareholders and the pork industry. We look forward to the future as we
continue to grow the corporation's revenues and earnings.
The released Form 10 filing information is a "snapshot" of where the
corporation was up until December 31, 1999. During 1999 we invested in our
most important asset... superior genetics (as Brent states, "we have
them... and the others don't"). This investment in infrastructure is
the
foundation upon which we will build this corporation. This time-consuming
effort took many months to complete. As one can see by the developments
over the last number of months, Struthers, Inc. has been growing it's
sales, staff, acquisitions, alliances with key corporations and
individuals, and most importantly our worldwide presence. The word is out
and we are being accepted as a key figure in the industry. We should all
be proud of the fact that we took this corporation from a research
and development entity, to a fully developed corporation with commercial
products and services.
Our Commitment to You
There is no relationship in our business more important to us then our
commitment to the members of the corporation, both clients and shareholders.
Through our open door policy, your letters, faxes, e-mails and telephone
calls, you have told us what we can do to better serve our market and
shareholder base. I've read, listened, and understood what everyone
has said. The true reason for Struthers' success is in the way we fulfill
the obligations we have today and developing for tomorrow. We also
must
adapt to an ever changing and dynamic swine industry.
I speak for the corporation as whole when I say that our goal has always
been to offer our customers and shareholders the highest degree of quality
management and innovative products found anywhere in the porcine industry.
As we move forward, achieve goals, and remain committed, we will endeavor
to serve the interest of your corporation more effectively.
At Struthers, we've always strived to think outside of the box. If new
programs or facilities were needed to obtain our desired results, we
went out and built them. If new programs were needed to achieve a
desired end, such as a non-surgical embryo transfer, we found it and
improved on it. Where live animals, semen sales and packer arrangements
already existed, we endeavored to improve upon them, without compromising
the confidentiality of our clients who are assisting and introducing us to
new and exciting markets.
Struthers is in the process of growing and changing from "small" and
"great"
to "big and best". As Rhett comments, "We are not just
another Genetics
Company". We've grown the corporation on the following sound
principals:
* Understanding our role as leaders in the porcine industry
* Decide what we do best and improve upon them
* Think outside of the box
* Hire the best talent
* Make alliances with those who will work with us to develop an unstoppable
team of producers and customers
* Take complicated biological concepts, simplify them and make them affordable
* Never forget that quality is a priority
* Focus on services we can offer to producers and consumers
* Develop cutting edge technology and introduce it to the swine industry
safely and quickly
In closing, I would like to add that the attitude you choose toward life
and everything it brings you will determine whether you realize your
aspirations. Your talent and ability and those who you surround yourself
with, determine what you are capable of achieving. What you attempt to do
is determined by motivation. How well you do something is determined by
your attitude. Our attitude, motivation and determination are to change
and introduce new technologies, enter into niche markets to support the
pork and other industries. We are growing our identified profit centers,
not tomorrow but TODAY. We have the lead in this industry and we
will capitalize on it.
Remember, there was once an astronomer who said, "the earth is the
center of our universe"... people maintained he was wrong! There were folks
who said, "we will never get to the moon"... they were wrong.
"The earth is
flat"... wrong again! Eighteen months ago, some said that what we were
years
away from introducing industry changing technology, products and standards.
I believe that many of you would agree that they were wrong also. I am
delighted to have you on our team and I invite you to continue to grow with
us.
My deepest respect,
Douglas W. Beatty, Ph.D.
President/CEO
Struthers, Inc.
PS. Doctors recommendation: It has been a long week. Please take
some
time this weekend to relax with your family and friends or to reflect on
just how far we really have come in just a very short time. Feel confident
that the best is yet to come!
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Dear Shareholders,
We have an open door policy at Struthers, Inc. for you
to either visit us in person, or to call us. Due to new and exciting
developments recently announced by the company, we would like to make ourselves
available to speak with as many shareholders as possible. We invite you to call
the office and setup a convenient time for us to visit.
Remember, this is
your company. let's build it together. That way, everyone wins. We look
forward to speaking with you personally.
My deepest respect,
Doug
Beatty
1-888-400-8810
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Dear Shareholders,
In response to questions brought to my attention with
respect to the recent
newsletter, I would like to take this opportunity to
clarify and discuss
where Struthers, Inc. is headed, and what the benefits
are to you.
In January of this year when the company was reorganized we
identified what
Struthers, Inc. needed to do to evolve as a world leader in
swine genetics
and we went out and addressed it. Our mission statement was
changed and
redefined as "Struthers... Solutions to the
problem".
Embryo transplantation and the "washing" of the embryos
virtually free of
disease was the "first piece of the puzzle", and has now
been integrated
into the Struthers "solution" to develop, maintain and
disseminate some of
the world's finest porcine genetics.
We are in
the position where embryo transplants will be used to produce low
disease
incidence commercial boar studs to reduce the disease transmission
regularly
associated with fresh extended semen. It now allows our clients
and
contracted alliance herds of breeding stock to acquire world class
genetics.
The day has arrived where we can harvest viable embryos, pack them into
a
briefcase size incubator, walk onto an airplane with a "herd" of up
to
10,000 embryos and take them anywhere in the world (ref: Hogs
Today,
November 98. Copies are available from our office or visit the
company's web
site at www.struthersinc.com).
What we
have accomplished since January with our porcine genetic technology
and the
growth of the company is absolutely unprecedented in this
industry.
Alliance with LSG/Norsvin Genetics
With our new subsidiary
Legred Struthers Genetics, Inc. and LSG/Norsvin we
now have the opportunity
to benefit from an established customer base of
over 7,000 clients. What this
means to your company is that we now have a
major profit center capable of
expanding to meet market demands on a
consistent basis. Consistent carcass
quality and availability of animals is
exactly what the packing plants have
been asking for.
Through our new subsidiary we now have immediate
international presence and
access to superior genetics throughout Europe. We
no longer have to look
back at what the others are doing.they, are watching
us!
Building of Stud Boar Unit
Our current Stud Boar facility will
house 400 boar studs, with additional
permitting to increase to 1,500 over
the next two years. The boars will be
allocated from our existing Great
Grandparent Herd and within 6 months we
will be at full operation. Each boar
produces roughly 1200 doses of semen
per year multiplied by 400 equate to
production of 480,000 doses of semen
per year. The current LSG/Norsvin stud
boar unit that is fully operational
is producing 120,000 doses per year.
Embryo transplants, and semen sexing
will develop boars for this facility at
an accelerated reproductive rate.
I hope you can now understand why we
call AI - artificial insemination a
very "profitable" profit center. For
further review please see the marketing
analysis completed by A.H. Beswick.
Copies are available from our office or
visit the company's web site at www.struthersinc.com.
Struthers,
Inc. Business Model-Summary
Struthers' business model is to create a
"win-win-win" situation. The swine
producers benefit, the packers benefit and
the shareholder benefits. Through
our alliances with our solid customer base
and swineherds, Struthers, Inc.
will supply semen, embryo transfers, breeding
gilts, boars and our feed
protocols to selected accounts. The swine producers
then raise the animals,
which are then sent to specific alliance packers who
pay a premium for the
consistent carcass quality.
Through these
marketing alliances we will be in a position to capture 6%-10%
of all market
hog sales in North America within 24 months.
Through the formation of our
alliances we will be a dominant profitable
competitor in the porcine
industry.
Best regards and thank you for supporting the
company.
Know what you hold. it has exceptional value.
Douglas
Beatty, Ph.D.
Pres./CEO
Struthers, Inc.
P.S. Also, remember to
choose the other white meat for Thanksgiving, give
the turkeys a
break!
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Dear Shareholders,
Legred-Struthers Genetics' award winning herd
represents the finest porcine genetics in the world. View Hogs Today article
at:
http://www.farmjournal.com/magazines/article.cfm?art_ID=3644&ID=3&issueID=167&ACP=3
We're
excited to have you on our team. Together, we will all achieve great
success.
Best Regards,
Struthers, Inc.
1-888-400-8810
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