Newtech Resources may seek private placements to fund operations

By Sheri Kasprzak

New York, Jan. 17 - Newtech Resources Ltd. said it must raise additional capital through a private placement of either equity or debt or else reduce the size of its operations.

According to the company's latest form 10-QSB filed with the Securities and Exchange Commission, Newtech had no significant assets and does not presently have sufficient resources to meet its minimum operating requirements through the fiscal year ending Aug. 31, 2006.

"The company may seek additional capital through the placement of private equity or debt to support future operations," the report said. "Should the company fail to realize sufficient proceeds from private equity or debt placements, it will most likely have to obtain loans from shareholders until such time as an acquisition or merger candidate is identified and an agreement concluded."

Newtech said its most recent audit found the company may not be able to continue as a going concern because of recurring losses, lack of revenue-generating activities and an accumulated deficit of $1,009,869 as of Aug. 31.

"The company's ability to continue as a going to concern is subject to the ability of the company to realize a profit from operations and/or obtain funding from outside sources," said the report. "Management's plan to address the company's ability to continue as a going concern includes obtaining funding from private placement sources, obtaining additional funding from the sale of the company's securities, establishing revenues from a suitable business opportunity, [and] obtaining loans and grants from various financial institutions where possible."

For the quarter ended Nov. 30, Newtech reported a net loss of $24,091, compared with a net loss of $27,184 for the same quarter of 2004.

Based in Vancouver, B.C., Newtech is a shell company.

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