(OTC BB: NVLX)
Martin Schmieg, CEO
Nuvilex Inc., formerly eFoodSafety.com, Inc., is a holding company operating through wholly owned subsidiaries and dedicated to improving and health conditions globally through its technologies. The Company was organized to provide methods and products to ensure the safety of fruits and vegetables being marketed globally. The Company’s Knock-Out Technologies, Ltd.(Knock-Out) subsidiary has developed an environmentally safe sporicidal product formulated entirely of food-grade components that eradicates anthrax and a germicidal product, Big 6 Plus that kills six bacteria, including E-coli, Listeria, Pseudomonas, Salmonella, Staphylococcus, and Streptococcus, Avian Influenza and Black Mold. The Company’s subsidiary I-Boost, Inc. owns and distributes an immune boosting liquid. In March 2008, the Company formed Cinnechol, Inc. a wholly owned subsidiary engaged in manufacturing a product called Cinnechol 120 count capsules, which is a dietary supplement.
WSR: Good day from Wall Street. This is Juan Costello, Senior Analyst with The Wall Street Reporter and joining us today once again is Martin Schmieg, CEO of Nuvilex. The company trades over the counter, ticker symbol is NVLX. Thanks for joining us today for the update.
Martin Schmieg: Great to be here Juan.
WSR: Now start off by talking to us about the recent release about the company’s achieving the first sale of Last Shot Hangover Remedy.
Martin Schmieg: We were very excited to announce this week that we have launched and have completed our first sales of the Last Shot Hangover Remedy. Last Shot comes to us as a spin-off product from our Cinnergen metabolism supplement. Users of Cinnergen found when using that product after a night of partying that they were experiencing little or no hangover symptoms. We looked at that very seriously, did some reformulation work, and invented the Last Shot Hangover Remedy, which is an all natural supplement that is calorie free, sugar free, and caffeine free that will, if taken after a night of drinking and before you go to bed, nearly eliminate or eliminate all of your hangover symptoms the next morning. It is going to be introduced and sold through bars and clubs at the point of party, which differentiates us from our competition, and it will be sold at a very reasonable price of $4 per shot.
WSR: Nuvilex is a holding company, can you talk about some of your subsidiaries and some of the key products of the subsidiaries as well?
Martin Schmieg: Yes, Nuvilex is a holding company. We work in four primary areas. Our supplement subsidiaries are Cinnergen, Cinnechol, and now obviously Last Shot. Those are nutraceutical supplements that cover the areas of diabetes, cholesterol, and now obviously hangover. We also are working in the cleaning area, environmentally friendly and biodegradable cleaners to combat issues like traditional bacteria, it’s an anti-germicide working on areas like swine and avian flu. We also come to it with an anesthetics and cosmetics business where we are producing now Cyclosurface 3 cosmetics for a brand named cosmetic manufacturer that distributes through the large box retail environment and we have many other exciting products under development in our pipeline.
WSR: In regards to your M&A activities, what sort of criteria do you look for companies that you’re looking to acquire?
Martin Schmieg: We have two primary criterias. Number one is that the products must be able to go from inception to the market in less than 18 months and they must be cash profitable within five quarters after acquisition if not profitable at the point of acquisition. So, we like to make sure that we are in a very quick turn from point of acquisition to driving profits to the bottom line.
WSR: In terms of Nuvilex and Last Shot, how many competitors would you say the company has in this arena, the hangover remedy arena?
Martin Schmieg: Direct competitors distributing through the bar and club scene, literally none. There are many hangover remedies that are sold through the pharmacy, which are meant to be used more in a prophylactic sense before you start drinking and that’s a completely different market. That requires a partier to pre-plan that they might have a hangover, nobody really does that. We are in a unique space that after you’ve had too much to drink, there is a hangover remedy right there at the point of the party for you to take and that’s a major differentiator for us and it’s a major differentiator in the hangover remedy market.
WSR: Can you talk a little bit more about some of the trends right now in the market and how well positioned Nuvilex is to capitalize on them moving forward?
Martin Schmieg: We bring Last Shot to the market as a very new and novel product. That will be our anchor product this fiscal year and next. We really believe that it will be the primary part of our ability to make revenue and profit guidance. What we are doing now is we are taking a very large product portfolio and focusing Nuvilex to achieve topline revenue performance based on a smaller number of products that we are certain are highly efficacious and are in demand. That’s a unique focus for the company and what’s great about that is that we can focus on a handful or fewer products today knowing that we have a very robust pipeline to count on downstream work down the road as we want to expand our revenue line into $20 million, $30 million, $40 million, $50 million, $100m size.
WSR: Walk us through your background and experience for our listeners that didn’t get a chance to here our first interview, which was about six weeks ago as well as that of the key management over at Nuvilex.
Martin Schmieg: I’ve spent now 30 years working in the medical device biotech and pharmaceutical industry holding various different job responsibilities, everything from driving a forklift to up to this point being a Chief Operating Officer. I have spent most of my career in finance and/or marketing with companies like E. Merck, Cytometrics Incorporated, Advanced Bionics Corporation, Sirna Therapeutics, and Isolagen.
WSR: In terms of some of your objectives for the upcoming year, what specific goals does the management team hope to accomplish over the next year?
Martin Schmieg: Our guidance is very straightforward. We are looking to do between $3 million and $5 million topline revenues, to bring those numbers as close as possible to breakeven profitability, to continue to augment our marketing capabilities, and to look at unique M&A opportunities both coming in and out of the company that will improve our balance sheet. We’ve been pretty straightforward and open with our investor base about our goals and we have set goals in a very difficult economic environment that we have a high degree of certainty that we are going to able to achieve.
WSR: I know I probably asked you this in our last interview, but do you think that investors understand the general direction that the company is headed in?
Martin Schmieg: I hope so. We are going to keep preaching our message day in and day out until the whole universe understands it. There is obviously a lot of noise in the marketplace and a lot of negative sentiment. What we are trying to do is present a message of confidence and capability and repeat it and repeat it and repeat it until people know that we mean what we say and we accomplish what we mean. So, I think every day our investor base is becoming more and more confident and more and more clear of what we are trying to do.
WSR: Before we conclude, once again joining us today is Martin Schmieg, CEO of Nuvilex Incorporated. The company trades on the Bulletin Board, the ticker symbol once again is NVLX and is currently trading at $0.03 a share. What are some of the key reasons? Why should investors buy Nuvilex today?
Martin Schmieg: The one reason I can tell you is that in a good economy or bad economy, people always drink and have a good time at a party and the Last Shot Hangover Remedy is going to be a blockbuster product. The price is very low right now obviously being driven by the overall economic market conditions, good time to get in. We are expecting good growth in the coming years and an investor should be able to make a very good return on our stock.
WSR: We certainly do look forward to continuing to track the company’s growth and progress like very exciting news coming out and I like to thank you for taken the time for doing the update today.
Martin Schmieg: Thanks very much Juan.