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Minerco, Inc.'s Chairman & CEO Issues Letter to Shareholders
HOUSTON, TX / ACCESSWIRE / July 19, 2017 / Minerco, Inc. (OTC PINK: MINE), a cutting-edge brand management company specializing in the development of beverage related ancillary brands, issued a letter to its shareholders from Chairman & CEO, V. Scott Vanis today. The letter follows:
Dear Shareholders,
I would like to start by offering my sincerest apologies for our lack of communication since last year. I take full responsibility for the sudden cease of information flowing from the company. While this lack of communication was uncomfortable, even painful, it was necessary to take back control of our company. As CEO, my responsibility is to look out for the best interests of the company, which in turn, leads to growing shareholder value, even when the decisions are unpopular. We finally get to grow Minerco on our (all shareholder's) terms, not on the terms of the bankers or others not sharing our goals and vision.
To back up my apology, I have returned my value driven equity in Minerco (Preferred earned contractually and Common purchased in open market) to the company (and its shareholders) to start anew. In addition, while I have never taken a salary check from Minerco, I have returned all my accrued fiscal year (FY) 2017 (8/1/2016 - 7/31/2017) compensation. This is my attempt to "put my money where my mouth is."
Business Model
After careful, critical, and thorough analysis, the management team was able to solidify a reinvigorated and focused business model that highlights our many strengths, while mitigating our weaknesses. As the saying goes, "The most important thing we know is what we don't know." Minerco will now plug knowledge gaps by heavily relying on full time, in house experts to move our brands and business lines forward. The people running our brands and subsidiaries will be proven experts or even founders of the brands, or similar.
In line with our streamlined model, we unloaded the pieces of our business straining our cash position and/or having unreasonable capital requirements. The heart of our existing business was and is our brands, VitaminFIZZ® and The Herbal Collection™. Neither brand was included in the divestiture, and both brands are still 100 percent owned by Minerco. As we move our model forward, our brands will be at the forefront.
We plan to supplement the beverage brands with a sister subsidiary focusing on branding exposure, placement, and entertainment media. In line with our focused model, we plan to acquire an existing enterprise which complements our strengths, while voiding our identified weaknesses.
We used the quiet period to not only reflect and reshape our business model, but also to engage in discussions with similar and dissimilar brands, with beverage and marketing experts, and explore ancillary business lines. While not surprising, we found countless brands, groups, and companies looking for the proper partner(s) to supply the missing piece(s) to truly achieve our goals. While our pieces do not fit in some of their puzzles, and even fewer have the pieces we require to complete our puzzle, we have identified multiple potential partners to comprehensively grow our respective businesses.
Notable Events
While we were not actively communicating with the market, Minerco was active in the growth and streamlining of our business. The recently filed Form 8-K detailed most of these events. The most notable highlights and anticipated milestones include:
- Our subsidiary, Athena Brands, Inc., was completely divested, including our majority interest in Avanzar Sales & Distribution. The transaction was effective as of July 2016, and closed in 2017. Avanzar was depleting our resources at an unsustainable rate and, as the saying goes, "we needed to stop the bleeding." Save for VitaminFIZZ and The Herbal Collection, all other brands were included in the divestiture or returned to the original owners. This divestiture reduced our operating costs by almost $100,000 per month and relieved our debt load by approximately $2,000.000.
- Since we were out of regulatory filing compliance, our financial partners were not able to participate in our market. This pause allowed us to squeeze and reinvigorate our model while our financial partners evaluated their options. We have consolidated, renegotiated, or come up with other agreements with them to rightly return control of Minerco to its shareholders. More on these details in upcoming communications.
- All company management has returned all their non-voting equity to the company, including all earned and purchased Preferred Class "B" and "C" stock and common stock.
- We will be completely catching up our financials and associated disclosures in the coming days and weeks. We will be listed as OTC Current after these required disclosures are filed.
- We are evaluating a strategic acquisition that perfectly complements our existing business. The acquisition is anticipated to be a cashless transaction, and, when closed, will be operated by its founding experts. This transaction is the main reason for our recent increase in authorized shares.
- As the new leaders of our business come up to speed on the public aspects of Minerco, I will oversee the transition and ensure continuity. Once the transition is complete, I plan to entrust our company in the capable hands to our new business leaders.
- While the expected cashless transaction(s) will increase our issued and outstanding shares, these shares will be restricted and not free trading. We do not foresee many more increases since we were able to sideline our bankers and our operating expenses have been significantly reduced.
While a few things have changed, the goal is still the same. We evolve, we adapt, we grow: that's business, that's life. We have the opportunity to continue to grow our solidly streamlined company on equal and fair terms. We leveraged time for control, exchanged following for leading, and traded taking orders for giving commands. Now we get to build, grow, and chase our/your vision. The result will be a function of many variables, but ultimately, the result will depend on our ability to work together as a team, a team of shareholders with one main goal: building our company and shareholder value.
As we endeavor down the leaner, stronger Minerco road together, I will strive to communicate with you in an efficient and timely manner. To our shareholders, I thank you for your loyalty, patience, and shared vision. We will not always be correct, we will face challenges and obstacles; but together, we can overcome the challenges, and we will never quit striving to build value for your company. Our company.
As always, and especially in this moment, thank you for the opportunity to lead your company!
Sincerely,
Chairman & CEO, V. Scott Vanis
Minerco, Inc. (OTC PINK: MINE)
