Here it is from the website: (Good to see the $1.27 price...

Here it is from the website: (Good to see the $1.27 price mentioned):

Come together

Tuesday, January 30, 2007

The thinking man's bolt is aimed at eliminating screwdrivers, hammers and robotic welders, and we're in on the shop floor.
Shares in TZ Ltd surged last week on news that it had bought back from its American affiliate the world rights to its smart fastening technology so it will now get 100% of future sales revenue instead of mere royalty payments.

We added TZ to the portfolio at 53c first up this year after the company announced a $20m convertible note issue to US investor DKR Oasis (convertible at 59c a share) in preparation for a planned listing on America's NASDAQ. On last week's news, they ran to a week's high of 68c.

I expect we'll see them above a dollar yet, and shareholders later this year should get the opportunity to cash in or switch to the new NASDAQ listing.

TZ's CEO, Chris Kelliher, estimates the fasteners market under the new arrangement has the potential to generate more than $US250m ($322.8m) in annual revenues over the aviation, automotive, industrial and security sectors in the next few years. TZ's revenue rose from $US18.2m in 2005 to $US30.5m in 2006.

The Speculator first bought into TZ early in 2004 ( B, May 25) after it raised $US12m to move from Australia to Chicago. The company then held patents for technology aimed at eliminating tools such as screwdrivers, hammers, spanners and even robotic welders used to fasten together components on assembly lines and in buildings. The intelligent fastener looks like a bolt but has a built-in actuator with a microchip that responds to connect or disconnect commands from a remote hand-held wireless device.

TZ then forged a technology partnership with giant Textron Corp through its subsidiary Textron Fastening Systems, whereby the Australian company would receive a royalty stream from the US partner as it commercialised the technology under the brand name Intevia. Then, in late 2005 the subsidiary was sold to Acument Global Technologies and the Australian company was able (after months of negotiations) to buy back the world licensing rights.

Last week, TZ confirmed the $US20m buyback through the issue of 19,362,404 TZ shares to Acument at a notional valuation of $1.27 a share, or twice what they closed at last week. This means the US company Acument will own 10% of TZ and its shares will be held in escrow for 12 months.

Chris Kelliher will step down as CEO in favour of David Feber, who until now has been vice-president, strategy and business development, for Acument, a former director of Textron Inc and an executive with McKinsey and Co. Kelliher becomes president of TZ to concentrate on the US listing.

H