UPDATE LETTER FROM PRESIDENT OF HFBG
Dear Shareholders:
I wanted to bring Hall of Fame Beverage’s shareholders up to speed on some administrative items.
From the point I fully took responsibility for this company as its CEO and President, I have been meticulously examining every facet of business in order to make cuts and to make improvements in the way we do business. This company has far too long operated outside a responsible budget, and I have been evaluating the areas where we can trim the excess. You have all been notified that we’ve moved our offices from Las Vegas to Arizona. This has been a move to eliminate unnecessary costs and to find a solution that is more in line with this company’s budget. In addition, I am working to cut the amount we pay for internet/web hosting services, from the exorbitant fees currently paid, to a sum far more manageable. In the process, we’re going to improve our website with the focus squarely on our products. The addition of the Investor Relations Portal is part of the upgrades we’ll be making to our internet presence. We hope you are enjoying the enhanced information platform designed specifically with our shareholders in mind.
Also, while conducting my full examination I have gotten to the bottom of our share structure. Shareholders were told that Brad Godfrey was given 500-million shares. He was not. Mr. Godfrey was told that he would be awarded 500-million shares in lieu of cash, at the end of 1 year of service with Hall of Fame Beverages. It would be ridiculous to assume that anyone would be paid or just given 500-million shares in advance of any work with the company. I have learned that the direct miscommunication came in the letter sent to the company’s attorney that was used to pen the attorney’s letter. So, to clarify, there were never 500-million shares issued to Mr. Godfrey. They were merely earmarked for issuance at the end of 1 year IF Mr. Godfrey met the stipulations in that agreement. As you all know, Mr. Godfrey is no longer a part of Hall of Fame Beverages. Brad Godfrey was also under the impression he was named to the Board of Directors at Hall of Fame Beverages which never happened. There was never a meeting, and there was never a vote held naming him as such.
I want to be the first to tell you that the separation between Mr. Godfrey and the company was unfortunately not amicable. Larry Johnson and his advisors, which include myself, worked diligently to put together a team that included Brad Godfrey. However, with the many emails we were getting from disgruntled shareholders with regard to Brad’s attacks, posts on a public message board, and misstatements, Larry’s advisors reached out repeatedly asking Brad to be a part of the team and a team player. He did not respond, and instead, walked away from the company and was not heard from again. We tried to make the relationship work; however, we never got any cooperation from Mr. Godfrey, so Larry, his advisors and myself came to the realization Brad was doing more harm than good to the company and indirectly to you, the shareholders. It was then we chose to part ways completely.
I do want to clarify the status of Giovanni Luciano and Calvin Ross. Giovanni Luciano signed over all of his ownership and voting rights at Hall of Fame Beverages to Calvin Ross who, in turn, issued those 2.5-million Series A Preferred Shares to JAG Food and Beverage Holdings, LLC, to take the position of CEO and President. At that point, Mr. Luciano was no longer involved whatsoever with the company.
Calvin Ross assigned his 2.5-Million Preferred Series A Shares to Mr. Godfrey for an agreed monetary investment into Hall of Fame. I am challenging those 2.5-million Series A Preferred Shares because Mr. Godfrey has not provided a proper accounting of such, and we are unaware of any obligation being met. As the last order of business before relinquishing ownership of the company, Calvin Ross issued the remaining 25-million Series A Preferred Shares to JAG Food and Beverage Holdings, LLC. This issuance was to insure that Larry Johnson would have majority ownership of his own company as per a vote during a Board of Directors meeting held in 2009. This directive was added in the event Calvin Ross should leave the company, ownership would transfer to Larry Johnson via the majority ownership of the preferred shares.
Calvin is no longer in the management, or ownership group at Hall of Fame Beverages, and has no voting rights. It is important that you understand that as part of the smooth transition period, Calvin Ross has worked with me to bring me up to speed on the logistics of the business and the many operational partnerships we have in place. After facing some hard truths about the way Hall of Fame Beverages was being managed, and operated Mr. Ross came to the understanding that he needed to walk away and give up complete ownership in order for his beverages to succeed.
I tell you all of this because as I stated earlier, the separation between Mr. Godfrey and this company was not amicable. I have promised to be up front and honest with you, and under my leadership, we’re committed to transparency in this company. Therefore, I want to eliminate any possible nefarious agenda Mr. Godfrey may want to use to retaliate against this company and its shareholders.
Brad Godfrey wanted the company to issue 500-million common shares, 2.5-million preferred shares, 50% ownership in the company and a seat on the Board of Directors all up front without meeting any of his obligations, but we felt this was unrealistic. It has come to our attention that because he was not awarded each of the aforementioned, he plans to drag Hall of Fame Beverages and myself through the mud. I want you all to know that we’re focused on business and not the drama Mr. Godfrey would like to stir up. We’re full speed ahead, and Mr. Godfrey is free to vent his frustrations, but the fact of the matter is he was not a team player and continues to show that as his intentions are to try to hurt our shareholder’s by slinging mud.
Finally, while researching the share structure, I have learned that the current outstanding shares count is 6,498,671,683. I am not happy to learn that there was still some dilution that took place in the second quarter under former management. But my commitment to you, the shareholder, has been to clean up the structure, over time, while not adding to it through dilution. Our authorized shares count is 6,670,000,000 after I cut that number by 1-billion. There are currently 171,328,317 unissued shares. I have no plans to issue those shares. If they are issued, it would be to hire additional employees, or to hire personnel needed to grow Hall of Fame Beverages, and there would be restrictions, or I will simply cancel the remaining unissued shares.
We will be changing the share structure updates scheduled on the Investor Relations Portal from every two weeks to daily. There will be an update of the share structure each morning at approximately 9:30 am EST, found on the portal in the side bar on the right hand side of the front page. The only exceptions will be no updates on holidays. When we’re out of town on business, we’ll update as soon as possible.
I have promised you transparency, and as I uncover issues, find a better way to do business or as I further define our direction, I will always keep you in the loop.
Thank you for your time.
Jessica A. Gutierrez
CEO & President
Hall of Fame Beverages
AI
