UPDATE NEWS-Dear Shareholders,
I would like to take this time to thank everyone for their support over the years. The Company has had to endure some very rough waters to get where it is today. While Baron has made significant progress over this period, there is more work needed to instill investor confidence and complete previously announced action items.
As a brief summary of the past few years:
In 2012 Baron began to show results from the sale of convertible debt in certain client companies, but not nearly enough to make a difference. We, as a Company, also saw opportunities slip past because monies owed us by our clients was not paid, and promises were not honored.
2013 started off with promise, but soon turned out to be more of the same as the client companies continued to not pay us monies owed, nor did they honor their commitment to convert the debt we held in them.
During 2014 Baron began to show some traction and we achieved record income from the sale of securities. This trend continued through FY-15. Although income raised was not nearly close to the amount we should have received, Baron’s business model was proven in the market. On the downside, due to the lack of follow through from these client companies we were forced to sell the securities we owned in them at less than optimal prices.
Baron ended 2015 with all work ceasing for former clients. A giant weight was thus lifted, and the Company could focus on building itself. We have done exactly that. Over the past five months Baron has accomplished more than during the entire period from October of 2011 through November of 2015.
Going forward Baron plans on removing all debts from RIGH and TGGI from its balance sheet. We will only list current clients and the funds owed by WOGI, as we feel these are collectable assets. We will seek other options to collect the funds owed to us by the other companies.
Baron Capital turned a new corner in 2016. While the road ahead will still be bumpy, it will not be nearly as turbulent as in the past. This is due a combination of better clients, and not having to devote a good portion of our time to working with these companies, thus freeing time up to work on our own Company.
As demonstrated through various filings, a number of actions have taken place in the past month that some said would never happen:
The false claim that Baron has been abandoned and left for dead: Baron is now in a far stronger position than it has ever been, and nothing could be farther from the truth.
Nothing would ever happen with the purchased shells: The White deal has already closed, and we are in discussion for another deal with First Business.
Baron would never work with a reporting company or make filings to the SEC: Since 04/19/2016, Baron has filed three Forms with the SEC and looks forward to making more throughout the year.
Baron has stated it would do a buyback of its shares, and this action item is still pending. A buyback can happen in many ways either through purchases in the open market, certificate surrenders, or stock swaps.This goal will be accomplished over the next few months.
Time is a precious commodity and that means prioritizing. As your CEO, I have stated the most important thing from my perspective is business transactions. Without clients the Company will not survive, nor will it grow. Accordingly I have chosen to focus my time on building clients and revenue for the Company.
The focus of the Company for the next 120 days will be as follows, and in the order listed:
The completion and filing of the 2015 Annual Report and the 2016 Quarterly report expected not later than May 15th, 2016. Although we had hoped to file these reports by end of April we ran out of time working to close the White Financial deal. The Reports could be filed a lot sooner than the estimate, however the most important thing is make sure our disclosures cover everything from the period of the last report filed.
Further actions for the collection of debt from WOGI, TGGI, and RIGH.
Filing of complaint documents with the Broward County Clerk of the Courts against various online posters, consultants, and others.
Filing the documents necessary to change the domicile of the Company, and begin the process of eliminating the debt on the balance sheet and the accumulated deficit.
Work with White Financial to get its financials audited and file an S1.
Work with KSTV to get its financials audited and file an S1.
Close a transaction for First Business.
With the achievements we have made in 2016 our focus can now change to helping ourselves, our clients, and working on new deals.
Thank you for your continued support.
Regards,
/s/Matthew Dwyer
Matthew Dwyer
President
www.baroncapitalenterprise.com/investor-letter.html
