$NWAV News: New Wave Holdings, Inc. CEO Lays Path to Company Growth, Shareholder Value
LAS VEGAS, NV--(Marketwired - May 11, 2015) - New Wave Holdings, Inc. (OTC: NWAV), CEO Shawn Patrick Carden has issued the following letter to Shareholders, which outlines Company initiatives toward meaningful growth and inherent value.
"As a valued shareholder, you deserve timely information on the key initiatives the new management team of New Wave is undertaking to position ourselves for success in the marketplace. I wanted to take this opportunity to lay out the first two phases of our plan to get New Wave on this path to success.
Visibility into Company initiatives:
Define our mission
Define our Company
Define our product
Define our market
Develop the Plan to get the product to market which includes timelines and milestones and - EXECUTE.
Clean up the past and move forward.
The Company inherited a number of legacy issues including shareholder dilution and a poorly structured management organization. We are going to fix this immediately. A newly aligned management team, organizational chart, and properly defined roles and responsibilities will be forthcoming.
Reduce shareholder dilution -- we feel this Company is fairly valued at roughly $1.5 Million based upon a number of factors including pipeline relationships, technology, pending patents, and product; however our market cap clearly doesn't reflect number that because investors haven't been able to recognize that value for two key reasons: The dilution of shares and poor transparency from management as to exactly what the company has to offer.
Fixing the dilution. Moving forward, we are going to fix this. Preferred shares currently trade at a ratio of 1,000 common shares to every preferred share. That's a ridiculous dilution percentage. With total outstanding preferred shares of 5 million, that means that the market could be flooded with an additional 5 billion shares of common stock.
New Wave doesn't even have 5 billion shares of stock authorized or in the treasury. We feel this dilution is apparent in the disappointing current market capitalization of approximately $108,000 vs. the target $1.5 Million that we believe is a truer reflection of the value of the Company. The current level of dilution is a legacy issue created by the former owners of the Company that was never corrected.
Maintaining convertible preferred shares is important for a company in order to attract new investors for infusions of cash for growth and to ensure management retains control to execute on key decisions, however we feel the appropriate ratio should be 20:1 instead of 1,000:1.
The management team is going to pass a Board Resolution that will effect this change immediately. We feel this accomplishes two things: It helps bring the stock into a price trading range that potential investors will be more likely to value and it positions us for a stronger negotiating position for potential acquisitions - which we intend to pursue to increase long term value for our shareholders.
We feel that these changes should reflect positively in our (a) market capitalization to get closer to the $1.5 million mark, (b) potential to attract new investment, and (c) ability to undertake future acquisitions. Of course, share price is only one of the many factors that investors look at, but it is an important one. Without a comprehensive business plan, which is actively under development, and the ability to execute, in the end the share price will suffer.
We are not effecting these changes to manipulate the stock price or play games. Again, the fundamentals MUST be in place or the stock price will not be sustainable, however the proposed changes effected in connection with the execution of our business plan should position the company appropriately to achieve the long term value our investors and shareholders expect and deserve.
Providing shareholders with greater visibility into the Company's operations. It's all about communications. Over the next several weeks, we will lay out the go-forward plan along with executable steps management will take to get to the end game.
End toxic partnerships / vendor relationships and identify key long-term strategic partnerships.
Out with the Old. NWAV has been crippled historically in releasing its SchoolFuel product to market due to the lack of performance from several key vendors and partners. This ends now. We are actively working to terminate such toxic relationships.
In with the New. There are a host of vendors and partners that firmly believe in the New Wave story and are eager to partner with New Wave to get its SchoolFuel product to market quickly.
These include both vertical partners that can assist in the constructive redesign and launch of the product as well as potential new distribution channels. We are actively pursuing these potential relationships and will report shortly on our selections of quality partners to push our Company forward.
I hope that you will agree this is an exciting time to be a part of New Wave. Look for great things to come."
Carden joined New Wave on May 1st, toward expediting company growth and building inherent shareholder value through assets, acquisitions and revenues.
Material updates will follow.
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New Wave Holdings, Inc. (USOTC: NWAV) is a Holding Company focused in prepaid products and solutions. The Company is currently targeting acquisitions in the Payments Industry toward building a synergistic portfolio of companies focused in prepaid products, payment solutions and merchant services.
New Wave Prepaid Solutions is a subsidiary formed to develop and launch innovative prepaid programs to market. Its inaugural program, SchoolFuel®, is a revolutionary fundraising tool designed for schools, university and other related non-profits. The program revolutionizes the current scrip fundraising model and streamlines it into one convenient prepaid re-loadable debit card.
New Wave Holdings strives to be a leading contender in a dynamic industry
Learn more at www.NewWaveHoldings.com
Forward-Looking Statements
Certain statements in this news release may contain forward-looking information within the meaning of Rule 175 under the Securities Act of 1933 and Rule 3b-6 under the Securities Exchange Act of 1934, and are subject to the safe harbor created by those rules. All statements, other than statements of fact, included in this release, including, without limitation, statements regarding potential future plans and objectives of the company, are forward-looking statements that involve risks and uncertainties. There can be no assurance that such statements will prove to be accurate and actual results and future events could differ materially from those anticipated in such statements. Technical complications, which may arise, could prevent the prompt implementation of any strategically significant plan(s) outlined above. The Company undertakes no duty to revise or update any forward- looking statements to reflect events or circumstances after the date of this release.
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