Letter to Shareholders
I have read it. Now lets see the Q2.
AMITYVILLE, NY--(Marketwired - Aug 15, 2017) - Iconic Brands, Inc. ( OTC PINK : ICNB ) Issues the following Letter to its shareholders:
Dear Iconic Shareholders,
I want to first and foremost thank you all for your support and your help in making Bellissima a Nationally recognized brand. There is no doubt the shareholder base has been a force in getting the word out and helping the brand develop across the Country.
The job of building a brand in the early stages of its launch is challenging at best, and not as black and white as one might think. It is also something that cannot be initially measured solely by revenue numbers. The cycle of building a brand is made up of a combination of things that all are key to the sum of these parts. These parts consist of first and foremost inventory on hand, distribution, cycle period after initial implementation of product into the market for depletions and re-orders and marketing, marketing, and more marketing.
We are extremely optimistic about the growth of Bellissima and with our National Distribution footprint nearly complete the journey now begins. The reality is Bellissima is a "Baby" less than a year old and so much has already been accomplished in its short life. Currently in 40 plus markets, and multiple National and Independent Chain placements, it is really now that we get started with the push to drive significant case volume. Any one of our initial placements with the chain stores can go national at a moments notice, also our recent placement on Wine.com is a program we intend to push through marketing and social media and feel based on initial orders will be a significant driver of sales and revenue.
We came into the new year with a strong Q1; some of this strength was a result of having a very strong 5 week period following our coming out on November 20th on the acclaimed CBS Sunday Morning Show. We soared into December and due to the incredible demand, we ran right through our Domestic inventory and even shipped 2 direct import containers ("DI"), into two markets Texas and Pennsylvania. These two DI shipments were stated on a prior press release. There is no question to have two direct import containers so early on in a brand's launch is unheard of in the industry.
Q2 will show a leveling off following the surge from the end of 2016 that carried into Q1 of 2017, but all indications are that Q3 will be solid. We have already booked sales close to Q2 in the first 6 weeks of Q3, as well we anticipate a solid 4th quarter with the holiday season, a perfect time for Prosecco consumption and gifting. The catalyst we continue to work on night and day that will take our brand over the tipping point is in place and are pursued with vigor, our success is your success and this is what we strive for daily.
While Q2 will be slightly lower than anticipated, we make no excuses, there will be volatility in our revenue and sales for the foreseeable future, with spikes and dips; this is the cycle of brand building, it is our hope and belief there will be a "hockey stick" milestone in our near future and our shareholders will be rewarded in kind.
As you can imagine I receive inquires and suggestions by the dozens on a daily basis from our enthusiastic shareholders, most are very much appreciated and sensible, some a bit different in tone and approach which is fine. While I try and read and respond to everyone it becomes very challenging and time consuming, but I would like to respond to the question of dilution.
As we previously disclosed, Iconic Brands entered into a fixed price settlement back in December with a group of our debt holders; this was done with the intent to remove toxicity from our markets and clear over $1 million in debt from our balance sheet. The terms mandated a 10% maximum leak out provision, so the total sale of shares under this agreement can never be more than 10% of the daily market, this is managed by a professional institutional trader and trustee, and it has been adhered to and is fully compliant with terms and conditions set forth in the agreement. When an issuance of shares under the terms of this agreement happens, they are put into this program not "dumped" on the market.
The company does intend to raise capital, however we will not enter into any toxic or irrational financing, but are instead speaking with highly qualified and reputable sources, reviewing options, and will only act in the best interest of the company and its shareholders. Although not imminent, we would also anticipate issuing certain shares to key employees as we grow our organization; this is as a regular course of business. For those that wish to put forth a narrative that this is in some manner a "stock play" for management, or that we will succumb to a toxic agenda, rest assured I have not sold a share of stock ever in this company personally, my salary is deferred and my commitment of time and effort has taken precedence over my personal life, and that it will not happen on my watch.
We are taking it by the numbers every step of the way. We know we are not perfect but we feel we are on point and Bellissima will be a significant force in the Prosecco and Sparkling Wine Category soon.
I hope this answers some questions and sets a tone for our company, again my thanks and appreciation to all that have been a positive force, and I look forward to the journey.
Best Regards
Richard DeCicco, CEO
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