not marketable, according to the fund's portfolio manager. Business writer David Fox reports Bermuda mutual fund, Buttress Bermuda Fund Ltd., held 80,000 shares of a company at June 30 that the Bermuda Stock Exchange (BSX) has since delisted, the fund's shareholders have been told.

The Bermuda dollar mutual fund listed their Nims Technology Ltd. (NimsTec) stock as having been acquired at a cost of $126,480 and having the same value at June 30.

The BSX said last Thursday they were delisting NimsTec because they failed to comply with disclosure requirements of the listing regulations, during its application.

But NimsTec said recently in a shareholder update that: "Subsequent to the (April 24) listing, the BSX and the company have disagreed over the requirements of its listing document, which are open to self-interpretation.

"As a result of this disagreement, the BSX cancelled the company's listing October 2, 1997. The company's stock did not trade during the listed period at the company's request, as the company wished to complete its negotiation of the Pacific Rim contract prior to trading.

"The company did not expect to receive liquidity for its stock on the BSX due to the low daily trading volume of the Exchange. The company's original intention was to list in Bermuda as a courtesy and later to obtain liquidity via a listing in Europe.

"The company is continuing its efforts to list in Europe and expects excellent results with the Pacific Rim contract now in hand.'' Meanwhile, the Buttress Bermuda Fund's portfolio manager to June 30, Sean Kelly, explained that the shares are still held by the Buttress Bermuda Fund at this time. The NimsTec shares represent a negligible percentage of 0.91 percent of the net assets of the fund.

Mr. Kelly said, "They are not marketable. There is no market for those shares. There never has been. That is a risk capital investment for the fund.

"NimsTec has a product that almost no one else has. Their strategy is to get access to a very large market. If they can get that product working, the leverage is huge, and with that they can make themselves a lot of money.

"What's interesting is that they just recently signed up a big agreement to distribute their product in the Far East. At the end of the day, only if that agreement starts producing revenues, will it be a sure thing. But it could be high leverage.

"From the fund's perspective, it is a very small percentage of the fund. It is a speculative investment.'' NimsTec said this week they had signed an exclusive distribution contract for the Pacific Rim region with Vineyard Investments Ltd. The terms of the contract required the purchase of $100 million worth of product during the first two years and $100 million per annum thereafter.

NimsTec said it also received 50 percent of the profits generated from the region, up to a maximum of $60 million.

Products include amateur cameras and mini-labs, medical cameras and mini-labs and commercial products with initial focus on telephone debit cards. The company said it completed an order for enlarged 3-D images of Michael Jordan's Space Jam for SEGA, the US game manufacturer. NimsTec said SEGA subsequently ordered enlargements of the Star Wars trilogy and Jurassic Park The Lost World, and continues to place orders based on similar entertainment themes.

See story Page 33 BUSINESS BUC