Minerco Inc (MINE)

[JToews19]

Regarding the Reverse Split:

In 2014, when the company filed a pre-14c announcing that the A/S would be increased by 1 billion shares, many shareholders wrote the company and received the following response:

With respect to your concern over the increase in our A/S…



Once the increase in A/S is effective, a major block of it will be reserved for Preferred Shares (as per our Articles of Incorporation and our Bylaws). As we mentioned in a PR this week, we have made a lot of progress with negotiating and talking with potential endorsers for all of our Brands. While almost all of them are wanting shares in lieu of upfront cash (and more than a few have expressed an interest in a JV with Level 5 and Power Brands), we simply cannot further the conversations until we actually have the currency with which to negotiate. We are much better off using our capital to build our brands, rather than pay endorsers. With this increase in A/S, we can do BOTH.



A share buyback will be initiated when we have revenues significant enough to do so responsibly.



On a more personal note, I am reminded of what my Father always told me (still tells me)…



A popular decision is easy to make. Unfortunately, the right or correct decision is not always popular (whether you’re a father, a coach, a CEO or any other type of leader). But in the end, it is imperative to make the correct decision to protect, to win and/or to grow what is truly important (again, whether it’s the family, the team or the company). While we all prefer to make popular decisions, the correct (often unpopular) decisions are what define us.



It is my job to protect your investment, while picking the fights to win and growing OUR company into the Monster we plan to be. I can’t do it without you (our shareholders). I thank you, and all the Long Miners, for your loyalty, your understanding, your support, your trust and, most of all, your enthusiasm. I have been doing this a long time, and I can honestly tell you: I have never experienced such an energizing group in any business. Our company, because of you, can and will build something that we can pass along to the next generation.



Warmest regards,

Scott

Pretty strong conviction for what the A/S would be used for and inspired a lot of shareholders to stick with the company despite a drastic decrease in the pps when a lot of people got out because of the announcement.

In the end, the company neither issued shares to endorsers, nor were reserved shares held to back preferred shares, nearly the full billion were issued to cover notes and the company purchased a diwtribution company, Avanzar.

Now that a pre-14c has been issued announcing a pending reverse split, everyone should do their own DD and come to their own conclusion, but the past track record should be weighed IMO.