re: Ann: Press Release - XTEK & Morgan Announ... From Alan...

re: Ann: Press Release - XTEK & Morgan Announ... From Alan Kohler week end newsletter.

Xtek
This week’s interview is with Uwe Boettcher, chairman of the Canberra-based arms importer and distributor, Xtek.

This is a very interesting little company (market cap $9 million), but it’s been an absolute shocker for investors unwise enough to get in early. It floated in 2005 on the back of some decent contacts for security for the Sydney Olympics five years earlier, and shares quickly went to 75c. But it was badly managed and the price fell to less than 1c in 2009. That’s when lawyer and angel investor Uwe Boettcher came in and bought 15% for not very much and gradually lifted his stake to 24%. He sacked the management and brought in new people, but kept the resident genius, David Thompson, now head of the Adelaide office and chief scientist.

David invented something called Xclave, or hydroclave, which is a new way of bonding carbon composite that produces lightweight body armour and gunstocks. Xtek has won $1.5 million in funding from the US military to test it for their use, and it’s off and running, trying to sell both the armour product and the machines that make it. The plan with the US is to sell the machines, which are made in Adelaide, and licence the technology as well.

The other product the new management has added is a range of UAVs, or drones, for military use (peeking behind enemy lines, not remotely shooting at them). As I say, interesting business and well worth watching the video, here.

video link: http://www.eurekareport.com.au/video/eurekatv/xtek-fires

I didn't manage to watch the interview yet, as my bandwidth is very limited but the tittle says it all: "Xtek fires up".
If somebody could post a transcript or summary of the interview, that would be great.

Poloker