Orange County NC Website
Browse       Search
Post Office Box 640 <br /> 501 S.Greensboro St., Bldg. B <br /> Carrboro, North Carolina 27510 <br /> OF* 919-929-7791 <br /> ISr`"�--i-- U1� Ii�1 inrlC� <br /> �+ I ECH rtu`uu E= <br /> INC <br /> EXHIBIT A <br /> THE PROJECT <br /> Isotechnologies, Inc. , a Carrboro, N.C. , company, is seeking financial <br /> support in the form of Industrial Revenue Bonds to finance the acquisition of <br /> land and the construction of a new 25,000 square foot manufacturing facility <br /> to house its entire operations in Hillsborough, N.C. In addition to the real <br /> estate and the building itself, the money derived via these bonds will be used <br /> for the acquisition of equipment required for its routine research, <br /> development and manufacturing, and marketing operations and for the required <br /> furnishings for its offices and showroom. You will find at the end of this <br /> exhibit a tabular summary itemizing where the money will be spent, including <br /> the required fees for processing Industrial Revenue Bonds. <br /> Isotechnologies was incorporated in 1982 and functioned solely as a <br /> research and development corporation until approximately 15 months ago when <br /> its first product was sold. During the past calendar year, its sales have <br /> begun to increase on a fairly regular basis. The company has moved quarter by <br /> quarter in a steadily improving profit position. During the last quarter of <br /> calendar 1985 the corporation showed its first overall profit for any quarter. <br /> As the sales have increased and our need for additional employees has <br /> increased correspondingly, this company has found itself literally bursting at <br /> its seams in its current facility, which is leased. We are in dire need of a <br /> nicer facility for the presentation of our products which are sold primarily <br /> to physicians, physical therapists and hospitals. If we expect to continue to <br /> have successful sales growth in this market, we can not reasonably expect to <br /> continue exhibiting our equipment in our current facility in a room in which <br /> ji the roof leaks, we have inadequate electrical outlets and we have open holes <br /> around the exterior door to our showroom as well as other entrances to the <br /> current facility. As a start up company, we have been able to successfully <br /> "talk our way through" our initial group of customers, i.e. , as a young <br /> company we can not afford a nice facility until we get established and have <br /> some track record that would support an investment or loan by other people. <br /> Our corporate attitude toward the ualit of our from a <br /> functional as well as a cosmetic standpoint, is that dittisbanhexexpensive line <br /> of equipment being sold in a premium market. A comparison that we often make <br /> is that when a physician approves p Y the purchase of one of our machines it is <br /> approximately equivalent to buying a new Jaguar or Mercedes automobile and <br /> 0 they expect very high quality, not only from a functional standpoint but also <br /> in appearance. Therefore, if we are going to sell to this general calibre of <br /> clientele, we believe that we must have a facility that is conducive to <br /> supporting the sales environment to which these people are normally <br /> accustomed. We feel very fortunate that we have been able to sell to some of <br /> the more prestigious hospitals for spinal and back injuries in this country, <br /> including the Mayo Clinic. To enhance sales opportunities with similar <br /> hospitals and clinics, we need an attractive facility that will reflect <br /> stability and quality. <br /> • <br />