According to the company's blog, they applied for WiiWare developer status and were rejected. They've posted the rejection letter, which states that the company "looks for relevant game development experience" in addition to staffing and business criteria. The Xiotex blogger, Byron, points out not only that he had basically been courted by Nintendo at a WiiWare event earlier this year, but that he had specific experience developing GameCube and Wii titles.
There's probably more to this, since tiny new companies like Nnooo have successfully released games on WiiWare. Maybe he doesn't have the facilities required for secure storage of a dev kit? At the very least, this development makes WiiWare seem a bit more geared to established developers than previously thought.