January 16, 2019
Open Letter To Shareholders
The time has come for me to put an end to the growing number of speculative rumors received by the Company’s investor relations website and provide shareholders with a clear and concise picture of what I am doing to move the Company forward. Essentially, consider this open letter to shareholders as the “State of the Union” for Tiger Reef, Inc.
It has been a long and difficult road for the Company since it was forced to idle all operations and take a substantial write-down from the damage and losses incurred from Hurricane Irma on September 6, 2017. Since that day I have been working towards resolving the inherent conflict between our existing toxic debtholders and the Company’s need for fresh working capital to resume full operations.
As many of you know we thought we had a unanimous deal reached in late 2017 which would have allowed the Company to resume operations. However, that agreement fell apart at the last moment and ever since it has been a challenge to obtain any type of compromise from any of the existing toxic debtholders.
Despite those losses and disappointments, I want to let everyone know that I am working on a new, and somewhat radically different, deal that may solve the existing toxic debtholder situation and allow the Company to resume full operations fairly soon. It is important to stress here that a deal has not been ratified and is still being negotiated. However, I feel that it is okay at this time to disclose the general structure and plan of what is currently on the table without compromising the deal or ongoing discussions.
Presently I am working with a New York based business advisement group and hedge fund to provide the Company with a combination of immediate bridge financing that will lead to a substantial registered equity placement later this year after the Company becomes compliant with its SEC filings once again. All parties involved believe the Company’s current share price is significantly undervalued and will take the steps necessary to facilitate the equity placement at a higher, less dilutive share price, after this deal closes. The existing toxic debtholders will be satisfied with a portion of the proceeds of this capital raise.
So as not to repeat the events of late 2017 I will not disclose any other details at this time about the size or mechanics of this prospective financing. There are a lot of moving pieces to this prospective financing and there are still quite a few specific details that need to be agreed upon before it can close.
Should this prospective financing close the Company will immediately embark on the following:
Resume compliance with the Company’s SEC filings obligations going back to the missing September 30, 2017 Form 10-Q;
Settle outstanding toxic debt with proceeds from this financing;
Resume quotations on the OTCQB (no reverse split will be undertaken to meet the $0.01 minimum bid mandate); and
Alter the Company’s business model, which is a conditional prerequisite for obtaining this prospective financing.
The Company will be exiting the restaurant business in its entirety. Even though I’ve owned and operated successful restaurants in the US in the past, today’s capital requirements to open a high-volume restaurant are simply too high before any revenue can be generated (a minimum of a $2+ million capital investment before the first dollar of revenue is generated). No one is going to provide the Company with that level of financing to us on an untested, non-franchised concept anytime soon.
The Company will continue to idle its rum business until further notice. Too much investment and work has been done already to completely abandon this venture. However, there are still many hurdles involved, including obtaining US regulatory approval to import and distribute the products legally within the US.
The Company’s new direction will have if focusing on developing, installing, and maintaining clean renewable energy technologies, particularly for the Cannabidiol (commonly referred to as “CBD”) and legalized marijuana growing industry. One of the largest expenses for the production of CBD and the growing of legal marijuana is the electrical consumption of the machinery and specialized lighting systems. The Company believes once the prospective funding in place it will be able to offer solutions to CBD producers and legal marijuana growers that could cut their energy consumption expenses by up to 40%.
Let me be clear. The Company has no intention to directly enter the CBD or legalized marijuana industry. Rather, the Company will be offering a perfectly legal support service to this industry – on both a state and federal level. Plus, because of how I intend to position the Company it will be entitled to substantial tax rebates and tax breaks for the deployment of these advanced clean energy technologies.
Lastly, with the help of our business advisors the Company will start to explore strategic acquisition candidates to more rapidly expand the Company’s footprint within this marketplace as well as secure new technologies and patents that could have potential future long-term licensing opportunities for the Company.
I cannot go into more detail at this time on any of these subjects. Sadly, I cannot guarantee that this prospective funding will close as anticipated. In fact, it may never close at all; unforeseen issues sometimes crop up at the last moment similar to the events we experienced in 2017. All I can do is do pledge to do my best to keep all shareholders better informed as the Company starts moving forward again in 2019 and let you know that I will keep working diligently towards closing this prospective financing within the next few weeks.
Very truly yours,
/s/ J. Scott Sitra
President and Chief Executive Officer
http://www.tigerreefinc.com/ TIGER REEF, INC. (OTCQB: TGRR)
Tiger Reef, Inc. is a diversified producer of ultra premium rums under the Tiger Reef® brand
Authorized Shares 5,000,000,000 - 07/31/2019
Outstanding Shares 731,119,660 - 07/31/2019
Restricted 406,085,000 - 07/31/2019
Transfer Agent Name: Olde Monmouth Stock Transfer Co, Inc.
Unrestricted 325,034,660 - 07/31/2019
Nov 6th, 2017
As reported in a press release and Form 8-K on October 11, 2017, Tiger Reef has been trying to work with its lenders to agree to a 60-to-90 day forbearance on all of its outstanding convertible debt to allow the company a chance to obtain new financing to expand its ultra premium rum business since suffering catastrophic losses and setbacks to its business from Hurricane Irma on September 6, 2017. Unfortunately, these efforts have proven fruitless and the Forbearance Agreement will not be ratified.
Tiger Reef will continue its efforts to secure sources of new financing. However, this challenge has become significantly more difficult without the Forbearance Agreement in place.
Oct 11, 2017
MIAMI, Oct. 11, 2017 (GLOBE NEWSWIRE) -- Tiger Reef, Inc. (OTCQB:TGRR), a diversified producer of ultra premium rums under the Tiger Reef® brand and a developer of casual dining restaurant properties throughout the Caribbean under the Mermaid Reef Ocean Grill & Lounge™ brand, issues its first statement and shareholder update since its St. Maarten headquarters experienced a direct hit from Hurricane Irma during the early morning hours on September 6, 2017.
Hurricane Irma Damage Report
Hurricane Irma hit the Caribbean and our St. Maarten headquarters with minimum sustained winds of 185mph and locally recorded gusts approaching 300mph. 95% of the structures on St. Maarten sustained some level of damage with upwards to 70% of the structures losing some, if not all, of their roofs. Tiger Reef was not an exception.
Our office headquarters suffered catastrophic damage during the storm. The roof of the building was ripped off during the storm allowing for flooding which was followed by a small electrical fire (extinguished, we assume, by the incredible wind speeds generated by the storm). All of our office equipment, computers, paper files (electronic files were backed up offsite and have been recovered), etc. was damaged beyond repair during the storm. Some equipment has since been replaced and phone service restored which has allowed Management to resume a normal level of operations.
Simpson Bay Resort & Marina Mermaid Reef Ocean Grill & Lounge™
Tiger Reef was in the process of renovating a leased waterfront restaurant space in the Simpson Bay Resort & Marina in preparation of opening the first Mermaid Reef Ocean Grill & Lounge™ in time for the 2017 tourist season. We were two weeks into renovating the restaurant space when Hurricane Irma struck.
Simpson Bay Resort & Marina and our restaurant location also suffered massive damage and flooding. The following YouTube video shows the level of damage caused to this resort by Hurricane Irma: https://vimeo.com/235096890.
Management from both Tiger Reef and Simpson Bay Resorts & Marina have had multiple discussions since the storm regarding the future of the resort and restaurant. It is estimated that the resort will be closed for a minimum of six months, probably longer, before it can resume accepting guests.
Based on this fact, as well as other uncertainties, Tiger Reef and Simpson Bay Resorts & Marina have mutually agreed to terminate the lease agreement for this restaurant space. Tiger Reef will make a one-time write-off in the current fiscal quarter for its lost investment in this restaurant property.
As such, Tiger Reef is temporarily suspending all efforts related to the Mermaid Reef Ocean Grill & Lounge™ brand. Tiger Reef will reevaluate its options for this brand in the coming months after the company recovers from the losses incurred as a result of this storm.
Share Price, Financing and SEC Reporting
Tiger Reef is aware of the steep decline in its share price since Hurricane Irma struck. Although painful in the short-term, Management believes the share price can recover once the company resumes regular operations and secures new financing.
Towards this goal, Tiger Reef is starting to negotiate with its current lenders for a 90-day moratorium on all conversions pursuant to its various outstanding convertible promissory notes. Should all of Tiger Reef’s lenders agree to this moratorium, then an orderly conversion process can be established which will allow Tiger Reef’s share price to recover and open the door for new rounds of financing needed to move the company forward and away from this natural disaster.
In conjunction with all of the above, Tiger Reef will be petitioning the SEC for an extension to file its Quarterly Report on Form 10-Q for the period ended September 30, 2017. We understand that hardship extensions have been granted to some companies. Considering the difficulties we will have recreating some of the records that were lost during the storm, we are hopeful the SEC will grant us an extension. Should the SEC grant Tiger Reef a hardship extension, it will be reported to shareholders via a Form 8-K filing in the future.
Tiger Reef® Ultra Premium Rums
Moving the company forward, Management has made the decision to focus the majority of their efforts on completing the branding design work and begin importing Tiger Reef® ultra premium rums into the US market. Management anticipates making significant progress over the coming months with finalizing the branding design work and obtaining government regulatory approval to import, market and sell its line of Tiger Reef® ultra premium rums in the United States.
Additional news on the importer of record, images of design and prototyping, and so forth will be released via formal press releases in the near future.
May 25, 2017
LAS VEGAS, May 25, 2017 (GLOBE NEWSWIRE) -- International Spirit and Beverage Group Inc. (OTCPK:ISBG), a Nevada based alcoholic beverage company specializing in the development, marketing and global sales of innovative wine and spirits brands, is pleased to announce that it has entered into a Letter of Intent to import the Caribbean based Tiger Reef® brand of ultra premium rums into the United States.
Pursuant to this Letter of Intent, ISBG will assist Tiger Reef with obtaining US regulatory approval, including COLA and TTB certification and bottle/label design approval, for all three of Tiger Reef’s rums. Once Tiger Reef rums are legally allowed into the US, ISBG will continue to work with Tiger Reef as the importer of record and to help develop the US market for this exclusive brand, including facilitating and making key introductions in respect to distribution, marketing, warehousing, and retailers.
Both companies anticipate effecting definitive agreements in support of this Letter of Intent within the next 90 days. “We are thrilled to add the Tiger Reef® brand of ultra premium rums to our growing portfolio of top-shelf spirits,” said Alonzo Pierce, President and Chairman of ISBG. “This is a tremendous opportunity for ISBG to make its mark on the very exciting and rapidly growing top-shelf rum segment of the distilled spirits market.” Apr 11, 2017
MIAMI, April 11, 2017 (GLOBE NEWSWIRE) -- Tiger Reef, Inc. (OTCQB:TGRR), a diversified producer of ultra premium rums under the Tiger Reef® brand and a developer of casual dining restaurant properties in the Caribbean under the Mermaid Reef Ocean Grill & Lounge™ brand, announces that it has retained Dynamic Creatives Group (“DCG”) to assist it with:
- Designing the custom luxury bottles for Tiger Reef’s three ultra premium rums.
Create case boxes for Tiger Reef’s rums that are both functional and visually appealing for use in point-of-sale (POS) displays and promotions.
Develop a modern website that promotes the Tiger Reef brand of ultra premium rums.
Upon product launch in the US, undertake a comprehensive social media campaign to generate brand awareness and introduce the Tiger Reef brand to target demographic groups.
About Dynamic Creatives Group
Dynamic Creatives Group is a creative advertising agency. Our work has its roots in Scandinavia, where the leading idea is Less Is More – design which is characterized by minimalism, free space, subtlety and elegance. We develop comprehensive corporate identities. Starting from the logo, through the wordmark, business cards, stationery, internal and external communication documents, brochures, catalogues and any other promotional materials. Current clients include Ferrari, Maserati, McLaren, Porsche, and Jaguar among many others. For more information, visit www.dynacreatives.com.
Mar 29, 2017
MIAMI, March 29, 2017 (GLOBE NEWSWIRE) -- Tiger Reef, Inc. (OTCQB:TGRR), a diversified producer of ultra premium rums under the Tiger Reef® brand and a developer of casual dining restaurant properties in the Caribbean, announces that it has cancelled 90,250,000 shares of its outstanding common stock, or approximately 80%, of the 113,044,500 issued and outstanding common stock. As a result of this share cancellation, Tiger Reef now has 22,794,500 shares of common stock issued and outstanding.
Management is exploring the feasibility of cancelling additional shares of Tiger Reef’s outstanding common stock in the future and remains diligent about finding new avenues to enhance overall shareholder value.
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