Inergetics Gets $2 Million Non-Dilutive Cash Infusion Print E-mail
By Peter Depalma   
Thursday, 13 December 2012 03:00
icon_newsnotesOn December 7th Inergetics, Inc. (OTCQB: NRTI) received notice from the New Jersey Economic Development Authority that their application for the Technology Business Tax Certificate Transfer Program had been approved. 

The approval is for $2,209,715; for selling NOL and R&D carry forwards of the Company’s available tax benefit of $5,187,471.   NRTI will receive cash after fees of around $2,010,000 in January of 2013.  Inergetics will be able to apply next year for the same program with the remaining $2,977,756 plus the NOL and R&D carry forwards for 2012 and an additional 9% added to the 2012 number.  The total 2013 application could be around $3.3 to 3.4 million dollars.  

This is a significant event at a critical stage for the Company, as Michael James the new CEO and his team are implementing their business, sales and marketing plans.  The money is worth nearly 50% of the market cap of the company, which suggests the stock price could move to 15 to 17 cents.  Also, the money is non-dilutive and does not add shares or debt to the capital structure of the company.  One could argue that the money is more valuable to the Company and to the share price as it will be used to forward the development and sales of the Company’s products that Mr. James has spoken about on several occasions since he became the CEO.   

When asked about the additional capital Mr. James said, ”The management at Inergetics is very excited about our participation in the New Jersey Economic Development Authority’s program.   The money adds needed capital to the Company without diluting current shareholders and will jumpstart initiatives I have previously spoken about to grow our products, marketing and sales. “  Mr. James went on to say that the capital will be used for working capital, inventory and marketing. 

Inergetics product plans include further expansion of the marketing for Surgex Sports Nutrition Formula for the post-workout needs of professional, elite amateur and everyday athletes.  In a video interview Mr. James also spoke about a formulation the Company will soon launch for pre-workout and a line expansion of the product offering.  NRTI’s management believes the Company will see initial results of their initiatives in the first quarter of 2013.  The infusion of $2,000,000 and the potential of more money next year should go a long way towards achieving those goals. 

This non-dilutive capital should give NRTI the springboard to sales and profitability as the Company will be able to better serve and expand their customer base more rapidly than expected.  The capital also allows the company to grow without further dilution of new equity investments.  Even though the company is a speculative investment, there is now less risk for investors looking for an undervalued microcap company with significant prospects and investment upside. 

Disclosure: None




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