Pangea Network (fka PGEA)

[asus]

Update to Investors

This letter is intended to inform and update our investors as to the status of the company and its stock.
First, as I have discussed with many of you, our rapid expansion have allowed us to acquire some marquee locations that have strongly contributed to the company’s bottom line. Throughout this process we have determined that some of our acquisitions have not fit our overall expansion criteria. Our company as a result has now implemented a plan that has resulted in a dramatic shift in the company’s overall margin and financial viability. We have sold, closed or rescinded all of the locations that were not making a positive cash flow or that did not fit our overall expansion strategy. We have also reduced our management staff accordingly in order to streamline our operations. Furthermore, all current management has agreed to continue to forgo any compensation until such time as the company has the necessary resources to do so. As a result of implementing this plan, the company is now operating in a positive cash flow state and has become a sustainable business.
Secondly, we have made significant progress regarding the control and visibility of our accounting and financial position of the company, further reduced our cost of goods sold, and solidified our supply chain. We will continue to strive to increase our margins using this information to further reduce shrinkage and maximize our revenue and increase overall brand awareness.  As an example we have purchased and have installed drop safes into all of the locations.  This has eliminated the most common form of theft that we have experienced. Other near term plans include adding or upgrading camera systems with recording capabilities and remote access; which allows us to record and view all locations from anywhere at any time; live or historical. Locations that currently operate with this combination have proven to be our most secure. In an effort to increase revenue we have begun selling breakfast sandwiches and ancillary items. Additionally we will be launching our apparel store online including hats, shirts, and other novelty items as well as having some merchandise available in our locations. We have converted all but two of our stands to our “Baristas” theme of checkers with a red upper body and will continue to enhance the visibility and appeal of our locations.
Our launch has afforded us many successes but they have not come without challenges. There have been mistakes made and learned which has allowed us to grow. Many of these obstacles have been overcome; while others still require ongoing efforts in order to resolve to maturity. In retrospect we have made significant strides after evaluating all of we have learned, we are convinced of the viability and future of our business.
As far as the public side of the company; we have completed our name change to “Baristas Coffee Company, Inc.”  at the state level and have submitted to FINRA for it to become effective and requested a new symbol to be assigned.  We have been working with our transfer agent to complete their part of this process and believe that we will have this effective in the weeks to come.  There will no longer be a need to distinguish between Pangea, Innovative, or Baristas.  At that time all stock issued in the new name will be sent out to investors.  This has been a very difficult process as various changes in what regulators have been  requiring has forced us to change strategies on more than one occasion.  Never the less we fully expect to complete this process definitively and have liquidity in the stock, and complete our financing very soon.
I am open to discuss any matters relating to the company with any of you and encourage you to call me at [phone] or e-mail me at [e-mail]
I will be providing periodic updates and welcome your suggestions and candid feedback.

Barry Henthorn
CEO – Baristas Coffee Company, Inc.