Nutraceutical Clinical Laboratories International, Inc., (OTC PK: NCCL)

Editor’s Note: In looking over today’s profile as it was being prepared I imagined the financial message boards and the possibility of the Internet’s finest Cyber Analysts weighing in on the values of the company: Nutraceutical Clinical Laboratories International, Inc. (OTC PK: NCCL).

For those of you who’ve ever spent more than a minute in one of those forums you’re probably laughing to yourself as you know how preposterous those discussions can often be on the web. But they can also be insightful when a band of anonymous individuals combine to share research and opinion. Like a professor grading on the curve, we usually toss out the top cheerleader and the main short/basher and deal with the center when consulting a financial message board.

But I wondered to myself, what would the message board mavens say about today’s profile, a pink sheet company with an impressive story?

Would they look past the present pink sheet status to see a business plan in bloom, having successfully completed the development of a revolutionary preservative that is already being used in the bakery and juice marketplace? Would they value the all-star cast assembled for the Board of Directors? Would they see opportunity?

It’s tough to tell but we’ve put together a profile that may help answer some of those questions. Spend a minute, dig a little deeper on this one, and send us your thoughts at ask@stockupticks.com.

And now, the profile…
 

ABOUT NCCL

Nutraceutical Clinical Laboratories International, Inc. researches, manufactures and markets preservatives and nutraceutical products. Based in St. Petersburg, Florida, the Company has a Preservatives Division and a Medical Division, which includes the wholly-owned subsidiary Health Care Direct Services, Inc. (HCD). 

The Preservatives unit focuses on manufacturing and marketing NuPreserv™ (a non-toxic food and beverage preservative), that significantly extends the shelf life of food products and beverages over chemical preservatives. The Medical unit focuses on developing NuPreserv's medical applications and manufacturing and distributing Health Care Direct Services, Inc. (HCD) nutraceutical products.
 

 

NCCL is successfully filling an important niche in the marketplace by producing  non-toxic, non-chemical preservative alternatives.

Currently, the company's NuPreserv preservative is used in over 300 products including cupcakes, donuts, honey buns, carrot cake, and cinnamon buns. Through the third quarter, NCLL had shipped over 250,000+ gallons of NuPreserv.  NCCL sells to 20,000 independent and chain-store pharmacies across the U.S.  The current product mix gives consumers natural alternatives to chemical drugs. Currently, the HCD subsidiary has products that help with arthritis relief, weight loss supplements, and stomach antacid.

MARKETS - GOALS - STRATEGIES

Even though the Company is manufacturing and distributing its products, it also understands the importance of continual improvement and development of products. Accordingly, NCCL maintains a strong focus and commitment to an ongoing R&D program that complements the current manufacturing and distribution within both Divisions.

The strategy includes the following: 

• Successfully refine the preservative product for multiple markets 
• Successfully identify and add high-margin products to HCD 
• Continue to develop and upgrade formulations for new markets 
• Continue to expand the pharmacy distribution channel 
• Successfully ramp up manufacturing facilities to fulfill orders 
• Respond effectively to competitive pressures 
• Attract and retain the most qualified people in the industry 
• Improve information technology to increase efficiencies 

The size of the potential markets addressed by NuPreserv™ is enormous. As a research and development facility for this preservative, NCCL envisions an eventual huge worldwide market and demand for expanding shelf life via this ingredient. Although product testing and refining is a process, NuPreserv™ has already delivered outstanding results for one of the nation's largest bakeries and should steadily achieve greater market acceptance throughout the food and beverage industry by virtue of the enormous money saving benefits.

NCCL began selling NuPreserv™ to one of the nation's leading bakeries in January 2002. The use of NuPreserv™ is increasing within this large bakery as it becomes more and more familiar with its capabilities. Currently, NuPreserv is in over 300 products including cupcakes, donuts, honey buns, carrot cake, and cinnamon buns. Through the third quarter, NCCL had shipped over 250,000+ gallons of NuPreserv.
 

A TEST AFTER 45 DAYS SHOWS THE BREAD ON THE LEFT WITHOUT NUPRESERV (MOLDY & STALE) AND THE BREAD ON THE RIGHT WITH NUPRESERV WITH LITTLE OR NO BACTERIA

SAFETY 
This accomplishment was achieved only by tremendous research, testing, and documentation. Part of the documentation was the Ames Test. The Ames Test examined NuPreserv™ to determine if it created mutagens, which is a predictor of a product being carcinogenic. This outside test helps confirm the safety of NuPreserv™. Also, NuPreserv™ must be manufactured under Good Manufacturing Practices (GMP), and NCCL has an extensive GMP plan in place. The marketplace for NuPreserv™ is huge and varied. The following is a list of markets that NCCL is currently working with, either using NuPreserv™ or conducting shelf-life tests. 

• Bakery Market - Currently NuPreserv is in over 300 sku's 
• Beverage Market - currently performing tests Juices, Teas, Soft Drinks 
• Poultry Market - currently performing tests - 9 billion chickens processed in the U.S. per year 
• Meat Industry - currently performing tests - 145,000 head of cattle processed per day in the U.S., 290,000 pigs

OPERATIONS
NCCL’s manufacturing operations are sound and backed by well-known and time-honored principles for safe and good manufacturing. NCCL’s efforts are designed to lead not only to the development of new and improved products, but also to ensure effective manufacturing quality control measures. 

NCCL’s Hazardous And Critical Control Points Plan (HACCP) is complete and in effect. Standard Operating Procedures are written and maintained for all phases of manufacturing and shipping The Company’s safe manufacturing practices have been successfully audited by the University of South Florida and the American Institute of Baking (the nation’s leading authority in baking practices).

HCD will implement this strategy of new product introduction by both internal product development as well as partnering / joint ventures with other quality organizations. The sales and marketing for HCD is handled by a company-owned call center located in Tampa, Florida and the distribution is handled out of the NCCL facility in our St. Petersburg, Florida. 
 

SELECTED FINANCIAL HIGHLIGHTS

Shares Outstanding: 27,116,512 (as of 06-30-02) 
Estimated Market Cap: 16.541M (as of 12-17-02) 
State of Incorporation: Florida
Business History: Company was formerly = October Project II Corp., until September 2000.
Transfer Agent: Interwest Transfer Co., Inc., Salt Lake City, UT 84117
Legal Counsel: Kramer Levin Naftalis & Frankel LLP
Certified Public Accounting Firm: Pender Newkirk & Company

Please Note* Commencing in the first quarter of 2003, NCCL plans to report its financial results on a quarterly basis.

MANAGEMENT

Gary L. Harrison:
Mr. Harrison serves as Chief Executive Officer, President and Chairman of the Board of Directors of NCLII. Mr. Harrison formerly served as President and Chief Operating Officer of Mrs. Smith’s Bakeries, the frozen and specialty baking operations for Flowers Foods. During his more than 40-year career at Flowers, Mr. Harrison played an instrumental role in the growth of the company as he took on increasingly more challenging management assignments. 

James A. Orchard:
Mr. Orchard serves as Chief Financial Officer of NCLII. From 1997 to 2001, Mr. Orchard served as Chief Operating and Chief Financial Officer of Omnia Group Inc., a Tampa firm. From 1994 to 1997. Mr. Orchard served as Chief Financial Officer, Treasurer, and Vice President of Finance, along with many other positions, of Brown & Brown Insurance, Inc. of Daytona Beach. Mr. Orchard holds a Bachelor’s of Science degree in Accounting from the University of Florida. In addition, he is a Certified Public Accountant, licensed in Florida. 

Emery Ellinger III:
Mr. Ellinger serves as President and Chief Operating Officer of the Preservative Division of NCCL. Prior to joining NCLL, Mr. Ellinger served as president of EGrowth Capital, LLC, an investment banking firm. From January 2000 to June 2001, Mr. Ellinger managed the start up of InsiderAdvantage, a leading company in aggregating information on government U.S. bids. Mr. Ellinger has worked in the financial services industry with Bank South and Merrill Lynch. Mr. Ellinger received a bachelor’s degree in economics from Washington & Lee University. 

Richard Goldfarb, MD, FACS:
Dr. Goldfarb serves as President and Chief Operating Officer of the Medical Division, and as a member of the Board of Directors. In addition, he is Chief Executive Officer of Health Care Direct Services, Inc., an NCCL subsidiary. He is a distinguished Fellow of the American College of Surgeons, a member of many medical societies and associations, and Cancer Liaison Physician for Catholic Health Systems East. A board-certified surgeon, Dr. Goldfarb received a Bachelor of Science degree from George Washington University, Washington, DC and attended Finch University- Chicago Medical School. 

THE BOARD OF DIRECTORS

Gary L. Harrison

Richard Goldfarb

William J. Catacosinos:
Dr.Catacosinos is a director of NCCL and serves as Vice Chairman of the Board. Dr. Catacosinos is the Managing Partner of Laurel Hill Capital Partners, LLC, a private equity investment firm. He also serves as the Chairman, President and CEO of TNP Enterprises, Inc., the parent of Texas-New Mexico Power, an electric utility located in Fort Worth, Texas. Dr. Catacosinos served as the Chairman and CEO of Long Island Lighting Company (LILCO) from 1984 to 1998. Prior to joining LILCO, he was a founder and served 13 years as Chairman and Chief Executive Officer of Applied Digital Data Systems, Inc., Hauppauge, New York. From 1957 to 1969, he was Assistant Director at Brookhaven National Laboratory, Upton, New York, and from 1953 to 1956 served in the United States Navy. He earned a Bachelor of Science degree, a Masters degree in Business Administration and a Ph.D. in Economics from New York University. 

Robert Gilliam:
Mr. Gillham serves as a director of NCCL. Until his retirement in February 2001, Mr. Gillham was a Managing Director and head of the Global Power and Environmental Group of Chase Securities Inc. He is widely regarded as a leading banker to the utility industries and has been a spokesman for the banking industry regarding electric power and nuclear energy. Mr. Gillham joined Chemical Bank in 1966 and has been involved as a banker to utility companies since 1972. In 1974, he was a founder of Chemical’s Utilities Group. From 1992 to 1998, Mr. Gillham served two terms as a member of the Advisory Council to the Board of Directors for the Institute of Nuclear Power Operations (INPO). Mr. Gillham received a Bachelor of Arts degree from Harvard University and served in the United States Army from 1962 to 1965. 

Philip E. Pearce:
Mr. Pearce serves as a director of NCLII. Mr. Pearce was formerly a member of the Board of Governors of the New York Stock Exchange and Chairman of the Board of Governors of the National Association of Securities Dealers. He is currently managing director of Phil E. Pearce & Associates Financial Consultants and is Chairman of the Board of the New York International Commerce Group, Inc. Mr. Pearce has also served on the Advisory Council to the United States Securities and Exchange Commission on the Institutional Study of the Stock Markets, and as Senior Vice President and member of the Board of Directors at E.F. Hutton. Mr. Pearce graduated from the University of South Carolina and the Wharton School of Investment Banking at the University of Pennsylvania. 

George J. Sideris:
Mr. Sideris is a director of NCCL. From 1984 to 1992, Mr. Sideris was formerly Senior Vice President and Chief Financial Officer of Long Island Lighting Company (LILCO). From 1991 to 1998, he served on LILCO’s Board of Directors. From 1972 to 1981, he was Executive Vice President of Qualpeco Services, Inc., and also served on the Board of Directors. Mr. Sideris has also held positions at Jefferson Chemical Company, Unicorn Press and the U.S. Bureau of Labor Statistics. He was a former director of ADDS, and has served on the Boards of Nuclear Mutual Limited, Energy Insurance Mutual and Utilities Mutual Insurance Company. Mr. Sideris received a Bachelor of Science in economics from New York University and served in the United States Army from 1944 to 1946. 

Paul L. Simmons:
Mr. Simmons is a director of NCCLI. He is a recognized authority and former consultant on FDA’s Good Manufacturing Practice regulations, having authored six textbooks on that subject. He is an expert in engineering compliance programs and plant and process design for the biotechnological, pharmaceutical, device, diagnostic, and nutraceutical industries. Mr. Simmons has extensive experience in research and development and has many inventions to his credit, holding over 30 patents in various areas. 
 

FOR MORE INFORMATION ON NCCL, CONTACT:

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