By FIONA ROTHERHAM
Hamilton-based technology company Power Beat International is offering shareholders bonus shares in a US subsidiary as part of a renewed assault on the American market.
Shareholders have until next Monday to accept the free offer of one share in Delaware-registered Powerbeat Technologies Inc for every five PBIL shares held.
The US company was established several years ago as a vehicle to commercialise Power Beat's new products and technologies. Plans went on hold while Power Beat struggled during the Asian downturn.
The managing director of Power Beat, Peter Witehira, said the company had turned around after selling some technology and now had enough money to pursue the North American market.
Last year, Power Beat repaid, after some delay, a $1.2 million loan from Auckland financier Dorchester Pacific.
Power Beat International and its original shareholders would retain around 80 per cent of the US company. The remaining 20 per cent would be sold to wealthy Americans who had expressed interest.
Mr Witehira said US investors were happier investing in local startup companies than small offshore ones.
Powerbeat Technologies would be listed on the Over the Counter Bulletin Board in the US rather than on the Nasdaq as originally intended when Power Beat first announced the idea to shareholders in 1998.
Companies listed on the bulletin board, which is run by the National Association of Securities Dealers, can qualify for listing on the Nasdaq once a value for the "no par" shares has been achieved. Any capital gains on the shares is taxable under US law.
PBT's management would be based in the US, while all research and development work would continue to be carried out in New Zealand.
"We hope to compete with US companies who spend a large amount on research but we think we can do it a lot cheaper and get to the finished product faster. This is going to test that theory," Mr Witehira said.
Power Beat has developed a range of inventions in the past 13 years from the original never-go-flat battery to extruded car engines, self-watering pot plant systems, and intelligent lightbulbs.
It formed a joint-venture development company last year after investment by Warehouse chief Stephen Tindall to commercialise its deep video imaging technology.
Power Beat to make new bid for US market
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