A Shareholder's Year-end Report
posted on
Dec 24, 2008 07:26AM
In mid-November, I spent two days at the BIOAGRA facility in Hinesville with Paul Metzinger, Warren Robold, Sean Register, Dr. NinoSorgente, and Chris Nunn.
Paul was there working and putting things in order now that Vyta Corp owns 100% of the Company. It was good for me, as an investor, to see the CEO working and very much in touch with the day to day operations.
I got to spend some time with Chris Nunn with whom Paul was reviewing operations. Chris was kind enough to give me a complete tour of the plant, which I had not visited in almost 2 years. We talked extensively about production and material expenses, procedures and operations. Chris seemed to be the point-man in all things related to operation of the facility, and he confirmed a lot of my intuition about its excellent condition and the control of logistics and production. Chris allowed me to review the “Operations Manual” which he is constantly updating and improving.
I sat in on a number of meetings where discussions centered around the current status of poultry trials, analysis of trial results, current and future approaches to marketing, business planning, anticipated personnel needs, financial resources and product development. Paul disclosed ongoing negotiations with two international distributors that were interested in exclusive distribution rights for Agrastim® in extensive national and international markets. (I have since learned that Paul has rejected an initial offer from one of these distributors because the offer did not contain favorable enough terms for Vyta Corp. As far as I know, doors are still open to further discussion, and an offer from the second company is still anticipated.) Work on a new business plan for BIOAGRA, LLC was initiated now that the responsibility of managing and directing BIOAGRA rests completely on Paul Metzinger with the aid of his “team”.
A significant amount of time was spent discussing product development, and the “evolution” of Agrastim® as field trial data have been processed and improvements made in trial protocol, as well as in the product itself. I learned about a completely new (and likely patentable) production step that is expected to greatly increase large scale poultry and dairy production results.
It seems that while Agrastim® exceeded anticipated results in smaller trials - unquestioningly demonstrating its effectiveness - large scale production results have not always measured up to expectations. It took some extensive detective work to discover that some of our product was being “destroyed” in the feed mill mixing process. I am not at liberty to disclose the details of this discovery, since it gives us a new edge in the marketplace, but a new generation of Agrastim® has recently been perfected and is now being introduced into large production trials. This product is designed to protect Agrastim®'s Beta glucan as it is processed in the harsh environment of the feed mill. The poultry integrators and dairy producers conducting these new trials are anxious to reproduce earlier small trial results and have been eager to receive the newly developed Agrastim®. I fully expect these trials to result in new and ongoing orders for product by the end of the first quarter of 2009.
Warren Robold and I were hosted by Dr. Sorgente in his home, so I had the opportunity to “talk shop” from coffee at in Nino's kitchen at 6:30 AM, right through the day and well into the night. Both of these men are passionate about their work, and seem to never quit thinking and talking about it. I was able to gain a lot of insight into activities relating to Sales & Marketing as well as Research & Development. We talked about specific trials, trial data, specific poultry producers and their unique problems and concerns. I gained new insight into how the commercial poultry market works and have a new appreciation for why even small sales in this market are viewed as notable successes by those who know the industry. I learned a lot about enzymes and other nutrients added to animal feed, and how each interacts with our product. I learned about specific integrators, how different bacterial and viral diseases seem to uniquely plague each one, and how Agrastim® can meet those individual industry needs.
Considerable time was spent charting BIOAGRA’s path in the future. Discussion centered around two new Beta glucan products for the human market that are expected to be introduced by Vyta Corp in the first quarter of 2009. A third is likely to follow after a patent application has been filed. Unfortunately, I can’t really discuss details of these products until they are “officially” released, but I am extremely pleased, based on initial reception, with the potential of these products to generate considerable revenue for Vyta Corp in the lucrative human market and to produce increased value for Vyta Corp shareholders.
I wish the special blessings of Christmas to all of you, and may we mutually share a prosperous and exciting new year.
-zties