E-mail from CEO concerning the reverse split.
To My Fellow Shareholder,
We understand your concerns and frustrations during this difficult time for all of us. After considering all possible options we believe this reverse stock split and name change to STL Marketing Group, Inc. will position the company the best for future growth and potential long-term increased shareholder value. We all still have the same long-term goal. We all want to see the company grow and for the shareholder value to increase.
The purposes of the reverse split are to increase the per share trading price thereby appealing to a broader range of investors, and to provide investors with improved earnings per share visibility. To the extent that the reverse split does succeed in attracting more investor interest in the stock, shareholders may also benefit from improved trading liquidity of the stock. The reverse split will also have the effect of increasing authorized shares to accommodate the possible conversion of convertible notes issued in a financing last year.
We remain optimistic and believe our business is well positioned for growth as we have improved our revenues, profits, and focus along with our new operating model and future business plans. We believe the reverse stock split will provide improved earnings per share visibility and allow us to expand our shareholder base.
We believe the reverse stock split decision and continued strong business and business model will continue to drive additional shareholder value and benefit all shareholders in the future, however, we are dealing with some difficult economic challenges in general and will continue to do everything to the extent we are able under the current circumstances to give us all the opportunity to benefit as shareholders in the future.
We appreciate your understanding and support, and will continue to work hard at accomplishing our common goals.
Thank You
Paul
AI
