I haven't seen this posted before here. It's rather a newer document (Feb 19, 2003), so it may not have made it onto your radar screens yet. Suprised I found it, myself.
Here's the website address: www.regtech.com/stockbroker_report.doc
Hope that works.
Here's the document. I've highlighted a few areas.
The Stockbroker.com Report
February 19, 2003
Undervalued Special Situation
REGI U.S., Inc. (OTC BB: RGUS) Shares Outstanding: 11,288,000 REGI U.S., Inc.
Active Float: 6.2 Mil #1103-11871 Horseshoe Way
Recent Price: $0.08 Richmond, BC, Canada V7A 5H5
52 Week Bid Range: $0.04 - $0.29 Bus Tel: (604) 278-5996 Capitalization: $903,040
Website: www.regtech.com BUSINESS SUMMARY:
REGI U.S., Inc. owns the U.S. rights to the Rand Cam™ rotary technology and its parent company Reg Technologies, Inc (OTC BB: REGRF) owns the balance of the world rights. REGI U.S., Inc./Reg Technologies, Inc. are currently incorporating its latest winged rotor technology to dramatically improve sealing and reduce friction in the Diesel Rand Cam™ engine.
See website at
http://www.regtech.com REGI U.S.
is in the business of designing, developing, testing and manufacturing axial vane type rotary engines (RC/DC or Rand Cam™ engines). The Company owns the US marketing and intellectual rights to the engine.
Reg Technologies, Inc. owns 51% of RAND Energy Group, Inc., which in turn owns 51% of RGUS and owns the balance of the worldwide rights to the Rand Cam™ technology. Under this strategic agreement, RAND and RGUS will split the ongoing development costs of the RC/DC engine 50 - 50. Several other products are also being developed and tested by RGUS.
The Company has designed and built an air pump for fuel cell applications as well as an air pump for the lumbar seats in automobiles. The Company has also built a compressor for air conditioning units for buses. Currently REGI U.S., Inc. is developing an engine for a new low-cost unmanned aerial vehicle and for a 42 H.P. engine for unmanned helicopter applications. The engine is a four stroke Rand Cam™ engine utilizing continuous injection and combustion in a single combustion chamber.
The Company's goal is to license the Rand Cam™ technology and/or to participate in joint ventures to manufacture specific Rand Cam™ applications.
SUCCESSFUL DEVELOPMENT OF SUPERIOR RAND CAM™ TECHNOLOGY
Since 1987 the Company has managed a Research and Development program to build a rotary engine which, compared with conventional combustion engines, dramatically reduces size, weight, exhaust emissions, noise vibration and cost while improving fuel efficiency. The engine is inherently simple with no valves or gears and only two bearings. Today a number of Rand Cam™ engine designs have been developed to address a number of large markets including transportation, power generation, agricultural, landscaping equipment, marine, construction, power tools, pumps, and compressors (both heat and air conditioning). Additionally, military applications represent an enormous market, particularly with the strong potential for war and the obvious advantages of using unmanned aerial vehicles as well as the heavy use of military diesel engines.
The Rand Cam™ mechanism is well suited for application to internal combustion engines, pumps and compressors and expansion engines, such as turbines. The Rand Cam™ technology delivers a light, powerful, efficient, clean burning engine at a highly competitive cost. The compressors are also compact and highly efficient, resulting in air conditioning compressors that deliver the increased capacity required with the new refrigerants while reducing component size by approximately 50%! The engines can be scaled to match virtually any size requirement. This flexibility opens the door to huge markets.
Compared to the conventional diesel and Wankel engines, the Rand Cam™ is more cost-effective and produces higher volumetric efficiency!
INDUSTRY RECOGNITION OF RAND CAM™ FOR NEW GENERATION OF AIRCRAFT
Powered by the Rand Cam™ engine, the Ikelos aircraft was selected second in the category of Technology Innovation by NASA’s Langley Research Center of Hampton, Virginia. NASA and the FAA are currently developing the Small Aircraft Transportation System (SATS) that could revolutionize air travel. The concept is to employ a new generation of small inexpensive jets to provide a low-cost air taxi service among America’s 5,000 rural and suburban airports.
U.S. DIESEL ENGINE MARKET IS APPROXIMATELY $20 BILLION
The market for the excellent Rand Cam™ technology is enormous. This Company is now ready to capitalize on 15 years of exceptional development and
we expect that REGI U.S. is on the verge of securing a number of lucrative license agreements which will result in explosive growth in revenues and earnings in the next few years. Military contracts alone could be worth many millions of dollars. Also, over the next few years REGI/Reg Tech will continue to present the Rand Cam™ technology to interested companies such as the Big Three automakers, Cummins Engine Company, Caterpillar, and compressor manufacturers with the objective of securing licensing agreements.
PATENTED RAND CAM™ ENGINE HAS SEVERAL MAJOR ADVANTAGES
For the same diameter and length, the Rand Cam™ Engine delivers more power than the power of a stratified charge Wankel engine.
SIMPLICITY – The lack of timing gears, vane seals and a timed intermittent fuel injection system makes the engine simpler with fewer parts than the Wankel or reciprocating engine.
EMISSIONS – The exhaust emissions are as good as the best diesel engines with lower Nox emissions than the reciprocating diesel engine. The Rand Cam™ engine will have lower HC emissions due to the elimination of oil injection into the intake air.
MULTIFUEL – A true diesel engine configuration with a compression ratio between 15 and 20:1 will exceed the multifuel capability of existing military diesel engines, which have a lower compression ratio.
WEIGHT – This advantage, which duplicates the compactness feature, is very important for aircraft, many marine, all portable and hand carried machines and virtually all military applications. A weight to power ratio of 0.50 lbs/bhp is attainable for the Rand Cam™ diesel engine.
FUEL ECONOMY – The continuous injection Rand Cam™ diesel engine with K-Miller cycle will have a brake specific fuel consumption of less than 0.300 lbs/hp-hr which is better than heavy duty commercial diesel engines.
RELIABILITY – The lower number of parts and elimination of wearing surfaces and seals in the combustion chamber along with incorporation of journal bearings and a simplified continuous fuel injection system will enable the engine to achieve a level of reliability which is significantly higher than any other positive displacement engine, reciprocating, or Wankel.
VIBRATION – The engine is free of vibration as it is completely balanced at all speeds and loads. The large diameter, very short output shaft, which is integral with the rotor (which acts as a flywheel) results in favorable torsional vibration characteristics free of destructive harmonics.
NOISE – The very high firing frequency resulting from 24 combustions per revolution eliminates exhaust and intake noise. Structure borne noise is low due to the small surface area and inherently stiff structure compared to other engines.
RECENT PROGRESS REPORT ON CURRENT PROJECTS
As announced on November 13, 2002, REGI U.S. provided the following updates on their current projects:
- 42 Horsepower Diesel Engine
--
for unmanned vehicle applications for helicopters. The design phase of this project is complete and fabrication of the engine has commenced. Planning for the test facility and test plan is also underway.
Air Conditioning Compressor--
for air conditioning units for buses. Trans/Air Corporation has notified Reg Technologies, Inc. that testing their special Rand Cam™ air conditioning compressor was delayed due to lack of personnel. Trans/Air promised to have the necessary people available for testing in early 2003.
Rand Cam™ Steam Expander--
for hybrid car applications. REGI U.S. is working with two different groups on adapting the Rand Cam™ concept as a steam engine expander. These engines span a horsepower range from 25 to 10,000 horsepower. A proposal for a funded analysis, design, fabrication and test program has been prepared and submitted to one of the groups.
The Rand Cam™/Direct Charge Engine represents a dramatic departure from existing engine design that has not changed appreciably since the invention of the first piston engine by Karl Otto in 1876. Simplicity, power, and efficiency are key design priorities in the development of the RC/DC Engine, a truly revolutionary form of rotary power. Pound for pound, it is more powerful and fuel efficient engine than current reciprocating engines and yet it will be less expensive to assemble and maintain. Moreover, the engine maintains the integrity of the environment by reducing emissions and consumption of fossil fuel.
The RC/DC engine, the Company believes, has a variety of possible applications, ranging from the tiny weed-trimmer to the commercial and/or military jet engine, and a wide spectrum of uses, from air conditioner compressors to air and steam expanders. Fewer moving parts, high and efficient rates of combustion, fuel flexibility and ease of maintenance are but a few of the advantages this technology offers.
The Rand Cam™ Technology for compressors and pumps is also being developed to power bus or, automotive air conditioning systems and air compressors, to be used in fuel cell applications and in the lumbar seat application. The potential for high volume production of these applications is outstanding. Results so far indicate that the Rand Cam™ fitted compressor can generate the same cooling capacity as a normal compressor twice its size and weight.
MARKET STRATEGY AND LICENSING ADVANTAGES
The market strategy of Reg Tech is to use licensing agreements and/ or joint ventures to bring the Rand Cam™ technology to market through existing businesses that have a strong presence in their market segments. The licensee would be granted exclusive rights to a specific product range and/ or geographic area. This will obviously have a far higher rate of success and growth than Reg would have attempting to penetrate such markets alone.
Advantages of Licensing Approach
The licensees have established customer relationships, sales and distribution channels.The reputation of the licensee will lend the technology immediate credibility in the marketplace.The licensing strategy spreads market risk among many large corporations.Licensing utilizes the development and production facilities of the licensees, requiring far less capital to enter a market than if Reg were to do so without a partner.MAJOR LICENSING AGREEMENT WITH LARGE DEFENSE SUPPLIER "RADIAN"
On May 29, 2002, Reg Technologies, Inc. announced that an agreement had been completed with Radian to grant an exclusive license for the manufacture of Rand Cam™ Diesel Engines within the United States, for applications in Unmanned Autonomous Vehicles (UAV's), over 10 horsepower, including non-exclusive rights to the worldwide sales for this application.
Radian agrees to the following terms and conditions:
- Agrees to perform a 6-month duration study of the design, analysis, manufacturing cost risk assessment and marketing analysis to validate the risk and profitability of the product.
- Agrees to the fabrication and testing of a prototype Rand Cam™ Engine and based on completing a working version of the prototype, agrees to give the prototype engine to Reg in order to maintain the Radian license.
- Agrees to pay REGI U.S., Inc. $100,000 U.S. minimum annual royalty, five years from the date of this agreement.
- Agrees to pay a 6% royalty on sales of engines, parts and service used in UAV's including 6% of all funding received from the Government and Military sources to develop and manufacture the Rand Cam™ Technology.
- Agrees to pay REGI U.S., Inc. $150 per hour for engineering consulting work during the term of the agreement.
Pat Badgley, V.P. of engineering for REGI U.S., Inc., stated, "The license agreement with Radian will open up a new vast expanding market in Unmanned Autonomous Vehicles (UAV's) for the company and is very pleased to work with their expertise in engineering and design services for the Rand Cam™ Diesel Engine."
Radian Incorporated is based in Alexandria Va., as
a key supplier of engineering, logistics systems integration services to the U.S. Department of Defense. Radian employs approximately 350 and operates from facilities adjacent to several key U.S. military installations. Engineered Support Systems, Inc (NASDAQ: EASI) has recently acquired Radian for
$41.7 million U.S. in cash and shares. EASI is a diversified supplier of high tech integrated military electronics support equipment and logistics services to all branches of the U.S. armed forces and certain foreign militaries.
LICENSE WITH ROTARY POWER GENERATION, INC.
On May 7, 2002, Reg Technologies, Inc. announced that an exclusive worldwide license has been granted to Rotary Power Generation, Incorporated (RPGI), for the Rand Cam™ Technology for Power Generation applications.
RPGI agrees to the following terms and conditions for the exclusive license:
- To complete a 12-month duration study of the design, analysis, manufacturing cost, risk assessment and marketing analysis;
- To pay REGI U.S. $100,000 (US) within 1 year in order to maintain the exclusive license rights for the Power Generation application;
- To pay a 6% royalty on the sales of Rand Cam™ engines, parts and service annually;
- To pay 50% of all sublicense fees and royalties received on the license agreements received from all future partners and sub-licensees;
- To pay REGI U.S. a minimum of $500,000.00 (US) annual payment after 5 years from the date of this agreement; and
- To pay REGI U.S. $150 per hour for the engineering consulting work on the Power Generation project.
Pat Badgley, V.P. of the Engineering department for REGI U.S., stated, "The Rand Cam™ Power Generation technology will have a lower installed cost, lower exhaust emission than the micro turbines used today, and our generation efficiency will be about 40%, which is better than the 30% claimed for microturbine generators."
EXPERIENCED, PROFESSIONAL, & COMMITTED MANAGEMENT TEAM
John Robertson, President & Founder, has extensive experience managing public companies and has been very successful in raising capital through both private placement and public share offerings. He is also a founder and President of Teryl Resources Corp, a public company engaged in mineral and energy exploration. Mr. Robertson has a major background in corporate administration and the securities industry.
Patrick Badgley, Vice President, joined the Company in February 1994 when he left his position as Director of R&D at Adiabatics Inc. He has many years of engine design and development experience. From 1966 to 1977 he was Senior Technical Specialist with Cummins Engine Company at the Corporate Research and Engineering Center, then he was Manager of Accessories and Controls for Curtiss-Wright and later John Deere in their rotary engine programs for 9 years. From there he joined Adiabatics, where he came in contact with Reg and the Rand Cam™ engine. Mr. Badgley’s technical expertise, rotary engine experience and industry knowledge have tremendously strengthened REGI/Reg Tech. He initially advised Reg to concentrate efforts on the Diesel engine and has taken up the design work on the Diesel, generating many improvements over the initial Hercules/Alliant design. In addition to acting as the engineer for the project, Mr. Badgley spends approximately 50% of his time making presentations of the Rand Cam™ technology to companies who are potential licensees.
SUMMATION:
REGI U.S., with its stock selling for just a few pennies and with a market cap of less than $1 million, represents a unique and extraordinary opportunity for incredible capital appreciation. With the major R & D behind them and the exceptional, cost-effective Rand Cam™ technology, the Company is now positioned to capitalize on their technology in a major way.
REGI U.S., Inc. is addressing a $20 Billion potential market with numerous uses and applications for their Rand Cam™ engines in many huge industries. We would expect to see the continual signing of various licensing agreements or joint ventures and we also believe that the Military could be a significant source of future revenues. The stock appears to be extremely undervalued at its current price and valuation.
Obviously a few good contracts (license agreements or joint ventures) could send this stock sailing into trading for many dollars per share. Company has a long history of successful R & D and is now starting to capitalize on their superior, patented Rand Cam™ technologyREGI U.S. is positioned to benefit greatly in a $20 Billion diesel engine industryStock is very undervalued with a "market cap" of less than $1 millionLong term committed management is focused on major success through licensing agreements and joint venturesRand Cam™ technology has numerous and significant advantages over competitors.Military applications are substantial and are expected to be a large source of revenues in the future. The "war on terrorism" could very well accelerate this revenue source.License Agreements all in place for revenue in the near future from license fess & royalties
For further information about REGI U.S., Inc., visit the Company’s website at
www.regtech.com or contact John Robertson, President, at (604) 278-5996.To me, this seems like a pretty damning document for the Watchtower, combined with the SEC info already available.
bebu
