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STOCK SYMBOL: NEIK.OTC
NORTHSTAR ELECTRONICS, INC.-COMPANY OVERVIEW
Northstar Electronics, Inc. is a Delaware incorporated company, working in the defense and the marine industry. The Company listed on the OTCBB under the symbol NEIK in 2000 and is currently trading on OTC Markets.
Northstar began operations in the late 1990s by developing an innovative underwater sonar system for the international commercial fishing industry. Shortly after, in 2000, the Company was awarded a contract from Lockheed Martin MS2 for the assembly of Command and Control consoles for the Canadian Navys submarines. This was followed by Northstar being invited to be a junior partner on Lockheed Martins team for the pursuit of a $3.2B military helicopter contract.
Lockheed Martin was not the winner: however, the venture opened new relationships for Northstar within their company.
Lockheed Martin then contracted Northstar to develop and build the underwater portion of an anti-terrorism sonar system, designed to protect aircraft carriers and other ships of the US Navy from terrorist diver attacks. This was a major effort and Northstar successfully accomplished the work in a very short timeframe.
Lockheed Martin subsequently awarded Northstar the first of two contracts, together worth approximately $16M, to manufacture a number of small mechanical parts for C130 (Hercules) aircraft that were being refurbished. Also, a subsidiary of L3 Communications awarded Northstar a contract, which grew to about $4M, to manufacture Command and Control consoles for navy frigates. Northstars revenues reached over $4M in 2009.
Our efforts over the past year have been aimed at turning the Company around and injecting new energy into the company. Our core competency has always been in sonar so we are giving that sector our priority by going back to the sonar business. We know the sonar business well and made solid profits with it in the past.
We have made a solid connection with a European defense company specializing in naval sonar systems and shipboard systems, such as Command and Control. They have a good worldwide reputation and set up in Canada last year, mainly to pursue contracts on the Navy and Coast Guard's $38.3B new ship program. (News Release attached below.)
Northstars connection with this defense firm was initially based on a past relationship Northstars President had with them through a private company he owned in the 1980s that had a Joint Venture to pursue a contract to build a ship bridge simulator for a marine institute, worth about $15M in 1980's dollars. This past spring, we participated with the firm through our associated consulting company, as consultants, at a national defense show.
We have made progress with this defense company in having them appreciate the expertise that Northstar can bring to their sub contracting out requirements. Through our associated consulting company, we have carried out a first, successful contract, related to the sonar business, for them earlier this year.
We believe there are two good reasons why prime contractors would contract Northstar. First, Northstar has a team of associated world class sonar experts with whom we have worked closely on other successful projects for major defense contractors. Second, for a defense company to win navy contracts in Canada, they need to start accruing Industrial Regional Benefits (IRBs) in Canada. They have compelling reasons to utilize good Canadian based companies.
We intend to show customers that we are fully capable of taking on high level projects, not only in the sonar field, but also in Command and Control consoles and other related areas. As well, we intend to re-establish our relationship with Lockheed Martin and pursue contracts from them.
Another area of business we are planning to expand into is to develop and market sonar based systems for both navies and commercial customers. These include obstacle avoidance, mine detection and terrorist diver detection. The plan is to develop systems for sale to the US Navy, NATO navies, cruise ships, large yachts and large ocean going ships such as oil tankers.
Starting from a solid IP and design engineering base ( internal and associates), our approach is to have the final development and manufacturing of these systems outsourced on fixed price contracts. This strategy significantly reduces the manufacturing costs associated with in house tooling, materials, personnel and facilities. Overall, the Company plans to retain cash, increase cash flow and maximize bottom line earnings.
Our objectives right now are to get Northstar current with its SEC reporting in as short a time frame as possible, to establish Strategic Alliances where we can lever our capabilities with partner companies to develop new revenue generating business, and to secure new one or more contracts from a couple of select defense companies. We believe that the stock price would respond favorably to these events and that it could reach a reasonable and stable price range. From there, assuming the Company performs on the bottom line, we foresee getting back to the share price levels of a few years ago, based on continuing business growth.
Northstar is currently attempting to raise a modest amount of funds through a Preferred Share offering. The funds will be used to complete the work required to become current with the Companys SEC filings with the objective to return to the OTCQB, and for working capital.
Safe Harbor statement under the Private Securities Litigation Reform Act of 1995: Certain forward information contained in this release contains forward looking statements that involve risk and uncertainties, including but not limited to, those relating to development and expansion activities, domestic and global conditions, and market competition.
Contact: Richard Kaiser
Vancouver shipbuilders win $3.3-billion contract
By Lee Berthiaume, Postmedia News October 7, 2013
Vancouver shipbuilders got a huge surprise Monday, as the federal government announced it is ordering an additional 10 Canadian Coast Guard vessels, worth an estimated $3.3 billion.
That is on top of the $8 billion already on the books at Vancouver Shipyards for new Coast Guard science and fishery ships, naval resupply vessels and a heavy icebreaker, and represents a huge vote of confidence as the shipyard prepares to cut steel on the first of those ships.
It also brings the total amount budgeted in the federal governments national shipbuilding strategy to $38.3 billion the other $25 billion consisting of new frigates, destroyers and armed patrol ships for the Arctic, all of which are being constructed in Halifax.