Global Links Corporation
A Letter to our Shareholders
"On February 1, 2005, the Company implemented a one for 350 reverse split of its authorized and outstanding shares of common stock. The number of authorized and outstanding shares of the Company's common stock following the February 1, 2005 reverse split is 5,428,571 and 1,158,064, respectively." (Released on BusinessWire February 2, 2005)
What happened the first week of February, 2005 really took us by surprise. Our trading volume for the first (4) days of February was 143,463,600 shares. We only had 1,158,064 shares in the "float" and of these shares; the Depository Trust only had 929,277 shares.
4-Feb-05 0.02 0.04 0.02 0.02 22,471,600 0.02
3-Feb-05 0.00 0.02 0.00 0.01 37,044,600 0.01
2-Feb-05 0.00 0.00 0.00 0.00 35,993,100 0.00
1-Feb-05 0.10 0.10 0.00 0.00 47,954,300 0.00
What was particularly alarming was the way our stock plummeted from an opening price of $0.10 on February 1, 2005 to a low of $0.0008 in a matter of hours. It became very clear that we had no control of the volume or price of our stock in anyway. Outside forces were now manipulating our stock.
I made a decision to stop any additional stock being sold by the company at this time until we had a better picture of what was happening. We closed the month of February, 2005 - maintaining our outstanding shares at 1,158,064, and a total stock volume of approximately 208 million shares.
During this time, I received many phone calls and email messages from stockholders asking why the company is not issuing any shares and why they cannot get delivery of their stock. I received several email messages from shareholders, which was sent by their brokers indicating that share certificates could not be issued at this time because (a) the company is going through a reorganization and that the "company" was not issuing shares at this time; (b) the transfer agent was not issuing shares at this time; and (c) that the company is in a "chill" mode and that shares cannot be issued at this time. None of these answers are true.
If you purchased shares in Global Links Corp., you have the right to demand delivery of your shares. If the shares simply do not exist, then the problem of Naked Short Selling will come to the surface. The broker that sold you the shares has to provide delivery of your shares. Exchange Act, Rule 10a-2 requires delivery of shares sold to our stockholders.
Global Links Corp. was placed on the SHO list as of Friday, February 11, 2005 and has remained there since that date.
The company and its shareholders have the right to expect a fair playing field. When illegal trading occurs, the company cannot meet its goals, and shareholder equity is diluted so that brokers can line their pockets with illegal cash. I cannot tell you how long this has been going on. If we had not completed the reverse of both our authorized and outstanding shares on February 1, 2005, we may never have discovered how blatantly our stock was being abused.
Global Links Corp. is not the common penny stock company. We actually have millions of dollars in real estate assets. We are not going to fall apart because we didn't trade any stock for an entire month. Our goals may be postponed, but our future is solid. Many companies would have collapsed when their stock price drops so sharply and the number of shares being traded is so staggeringly high. I feel very fortunate that we were able to discover what has been hurting our stock price, and now, we will have a chance to correct this imbalance.
As of today's date (March 15, 2005), our authorized still stands at 5,428,571 and our issued and outstanding common is 4,028,362. No preferred shares have been converted into common shares and no officers are selling any stock. This is not possible because our authorized would have to be sharply increased to accomplish any conversion.
I cannot tell you how may shares have been sold or how many stockholders have demanded delivery of their shares. I believe that this number is much higher than the stock we have available. I strongly encourage our stockholders to demand delivery of their shares. If you would kindly forward a copy of any such requests to email@example.com, this would give us a better picture of what is really happening with our stock.
Thank you for your concern and loyalty to our company.
Very truly yours,
Frank J. Dobrucki
Global Links Corp.