FOR IMMEDIATE RELEASE
Investor Contact: Dan Wong
Phone: (858) 381-4677
Email: dwong@ntek.com
Letter to Shareholders from NanoTech CEO Peter Riordan
Initial Reach Out to Shareholders Addressing Recent Questions
SAN JOSE, CA – February 6, 2015 – NanoTech Entertainment (OTCPINK: NTEK) CEO
Peter Riordan takes an opportunity to address the recent frequently asked questions compiled
from Investor Relations.
“First I would like to state how excited I am to be tapped by the Board of Directors to take over
as CEO of this amazing company. Ted, Al and Jeff have done an incredible job getting us to this
place. Under Jeff’s leadership, NanoTech has made great strides under a limited capital
environment. Specifically, the launch and implementation of UltraFlix on Sony, Samsung Vizio
and High Sense 4K TV’s is a major accomplishment. The expansion of our licensed 4K content
library to over 900 hours is world-leading.
I am very fortunate to inherit a Company that has turned the corner and will do my best increase
sales and profitability. I believe it is important for the shareholder group to understand my
financial and operating experience. I have been in the workforce for 30 years and started out in
corporate finance on Wall Street raising capital for emerging growth businesses and initiating
initial public offerings. I then switched to High Yield Debt financing and Leverage Buyouts and
raised over $1.7 billion in debt and equity transactions over three years. In addition, I worked on
French Privatization transactions with the French Minister of Finance. After my experience in
corporate finance, I moved to the west coast and worked for Atlantic Richfield Company
(“ARCO”). ARCO excelled in sales and management training and I benefited from this starting
in retail sales and then running the west coast gas liquids business, which represented $100
million in sales. I then became Business Manager of our Technology group and worked on a
$45m rollout with Hughes Network Systems of our point of sale systems and VSAT Network. I
was able to “retire” from ARCO as it merged with BP and started in the small capitalization
world working on digital signage projects with Kroger and other entities and merging our
company with an Autostereoscopic 3D business, which is currently entering a new phase of
growth.
The NanoTech team is ripe for strong growth in the 4K market place. My experience in
operations, marketing and finance will be helpful in managing the next stages of development for
the Company. I plan to work closely with our team to maximize sales and assist with sales
opportunities in the Entertainment Industry. I will also work with our operations and R&D team
to maximize output and increase communication between all groups. I plan to work closely with
our Finance team to expand personnel when we are able to and work towards producing audited
financials and up listing. NanoTech was built upon the original idea of out of home entertainment. As technology was
developed and ideas grew, the business expanded through development and acquisitions to
include several different business units, all forging through the R&D process. The company has
matured greatly in the past couple of years and is now taking the next step forward in defining
the many assets that it has and how to best optimize opportunities and shareholder value.
NanoTech Gaming and High Velocity Acquisition
We recently announced the acquisition of High Velocity Enterprises, Inc.. High Velocity is a
separate public company currently trading under the symbol HVEL. NanoTech has taken over
control of the company and management. Bruce Schoengood has resigned from the company
and Board of Directors and is no longer affiliated with the company. Alan Stone has been named
the Chairman and CEO of the company.
HVEL has purchased the assets of NanoTech Gaming Labs from NanoTech. For that acquisition
NTEK has been issued shares in HVEL. NTEK will be distributing those shares, upon
registration and approval to its shareholders based upon their holdings in NTEK as of the close
of market today, February 6, 2015. NTEK will record all shareholders of NTEK stock and their
holdings and use that as the basis for distribution of shares. A timeline cannot be given as the
registration and issuance of HVEL shares is controlled by the SEC.
HVEL will be renamed to NanoTech Gaming, and have its ticker changed to reflect the name
change. Shares are being registered with the SEC and will be free trading upon approval of their
issuance. HVEL is being audited and we anticipate that the audits and applications for
registration with the SEC and up listing to OTCQB will take place in the next 90 days.
Current HVEL shareholders are gaining the benefit of the acquisition of world class patent
pending technology that is groundbreaking in the gaming field. NanoTech Gaming will be
operated independently of NTEK.
HVEL Authorized Shares is 45,000,000 not 45,000,000,000 as incorrectly reported on OTC
Markets. We have notified OTC Markets of the many updates to the company and are waiting
for them to correct their website. OTC Markets information is published by the company and is
not the official location of Authorized Shares. That can be found on the Nevada State website
where the articles of incorporation must be filed along with any changes to the share structure. New Transfer Agent
On January 20th we received notice that Clear Trust LLC had purchased our Transfer Agent
Stalt, Inc. We have not had the opportunity to meet with Clear Trust who is located in Florida
and make a decision on moving forward with them, or retaining a local Transfer Agent. Stalt
provided great convenience being located a few miles from our offices. We have been very busy
with our reorganization and once that is completed we will meet with Clear Trust and determine
who our new Transfer Agent will be moving forward. Once we have signed a services
agreement our Transfer Agent, as always, will be able to provide daily updates to our share
structure. We have not changed our Authorized Shares and have no current plans to change it or
to execute a reverse split. Our TA is not “gagged” and never has been.
Audits & Up Listing
NTEK was comprised of 7 separate business units, each of which is undergoing the audit
process. We had run into issues with previous service providers and have changed both CPA
and Auditing firms. Completing audits was one of the priorities driving our recent
reorganization. We have every intention of each business audit being completed in a timely
fashion and once completed, re-registering with the SEC and immediately up listing to the
OTCQB. As our business grows, we do plan to up-list further as we meet the criteria of the big
boards.
UltraFlix availability.
UltraFlix is currently available on every Samsung 4K TV, every Vizio 4K TV, the Nuvola NP-1
4K Ultra HD set top box, and a variety of android-based devices. At the recent 2015 Consumer
Electronics show, UltraFlix was highlighted in the booths of Sony, Samsung and Vizio.
Samsung is now highlighting UltraFlix in the MyApps section. Sony is in final QA of their
release and will be pushing UltraFlix to their customers very soon. Hi-Sense will be releasing
their 4K Ultra HD sets this spring and UltraFlix will be bundled with all of their 4K models. We
have beta versions running on OSX, iOS, Sharp, Toshiba and LG and plan to support those
models with releases in the near future.
UltraFlix Customer Acquisition
We are about to embark on a substantial marketing campaign to ensure that UltraFlix becomes a
well-known brand name both with the consumers and the retail sales channel. We are working a
variety of programs including UltraFlix gift cards being offered by many retail outlets. Look for
our marketing campaign to kick off this quarter.
UltraFlix Content Library
UltraFlix is the largest collection of 4K Ultra HD content available by any service. We are
adding over 50 titles per week to our library. Processing of those titles can take anywhere from 1
week to 1 month depending on the delivery method, the quality of the masters, whether we get
digital or film assets and several other factors. Many of our contracts also call for review and
approval before the movies appear on the network. We have been adding more staff to the 4K
Studios team and we are now seeing new titles appearing on the channel every few days. That
volume is increasing and will continue to increase in the coming months. UltraFlix Business Model
UltraFlix is a hybrid network delivery 4K Ultra HD content in a variety of methods. Unlike pure
subscription services, by having a PPV model within UltraFlix we can have access to content
long before competitors like NetFlix. The window for TVOD is much sooner in most cases than
SVOD. This will allow us to have access to movies sooner than others. This model has been
very successful for the Amazon Prime system. We are working on several acquisition deals that
will provide us with an exclusive time window on our videos, further differentiating us from our
competitors in the market. As we develop and release new channels within the UltraFlix, there
will be a combination of offerings including access to certain libraries of titles on a subscription
basis, and continued access to free continue on an ad supported basis or ad free with a small
monthly subscription.
Nuvola NP-1
The Nuvola NP-1 was the first 4K Ultra HD streaming set top box and a great success for
NanoTech. When we entered the 4K Ultra HD market there was no means to stream 4K Ultra
HD content to 4K TV Sets. We invested in a partnership with nVidia to launch the NP-1 so that
we would have a means of delivering our UltraFlix application to the consumer. Unlike previous
evolutions in TV’s, 4K Ultra HD has grown much faster, with every manufacturer now offering
a Smart 4K TV. This greatly reduces the need for the NP-1 and as such we have shifted our
focus on delivering UltraFlix onto the Smart TVs. We continue to support the product and the
use cases where this device is still quite valuable such as our recently announced partnership
with JVC using the NP-1.
Shareholders Meeting
We will have our annual shareholders meeting this summer. A date and time have not yet been
set, but we anticipate sometime in June. Notices will go out in April.
Business Plan and Forecast
One of the first tasks that I will be getting my hands around is updating our 2015 business plan
and forecast to reflect all of the recent changes in the organization.
New Product R&D
The company is working on several new products, however, we no longer provide insight or
information about products that have not been released. By prematurely announcing products we
can set expectations that may not be met due to development schedules, or changing product
specifications. Moving forward, NTEK will announce products after the R&D phase has been
completed. Ultra Media Group
UMG is a private company wholly owned by NTEK. UMG was created in order to have a
business unit with its own P&L that is focused on content acquisition, creation and production of
live events. Following other successful companies in our field, we felt it was a good idea to
come up with a separate investment fund that could be used to acquire A level content on an
exclusive basis. In addition, we feel that there is great value in creating original content that can
be used exclusively on NTEK networks, and licensed out to other non-competing networks. By
setting up UMG as a separate entity, UMG can seek funds that are not tied to NTEK stock, but
rather to specific projects while ultimate benefiting NTEK.
Intellectual Property
NTEK has many patent-pending technologies with a plethora of applications being placed in the
past year with regards to several key components of our 4K delivery network.
Other Divisions
As I work through the transition into my new role I will be working with the heads of Magic
Screen 3D, NanoTech Communications, Clear Memories and NanoTech Media and we will
continue to operate in an open and transparent environment providing insight and details into the
business as we continue to grow.
In closing, I want to thank Ted, Al and Jeff for their leadership and strong support of our
business and thanks to all shareholders for their continued support of NanoTech.
Best Regards,
Peter Riordan
Chief Executive Officer
NanoTech Entertainment, Inc.
# # #
"Safe Harbor" Statement: This press release contains forward-looking statements, including expected industry patterns and other
financial and business results that involve known and unknown risks, uncertainties and other factors that may cause our actual
results, levels of activity, performance or achievements to differ materially from results expressed or implied by this press
release. Such risk factors include, among others: the sustainability of recent growth rates in of the company; the positioning of
NanoTech Entertainment, Inc. in the market; ability to integrate both developed and acquired companies and technology; ability
to retain key employees; ability to successfully market product offerings and customer acceptance of products; general market
conditions, fluctuations in currency exchange rates, changes to systems and product strategy by vendors of systems; and whether
NanoTech Entertainment, Inc. can successfully gain market share. Actual results may differ materially from those contained in
the forward-looking statements in this press release. Since this information may contain statements that involve risk and
uncertainties and are subject to change at any time, the company's actual results may differ materially from expected results.
NanoTech Entertainment, NanoTech Media, NanoTech Gaming Labs, NanoTech Communications, MagicScreen, 4K Studios, 4K
Ultra HD logo, UltraFlix, NanoFlix, Nuvola GP-1, Nuvola NP-H1, Nuvola TV-U1, Nuvola NP-1, Nuvola NP-C, and ProFlix
UHD and their associated logos are trademarks of NanoTech Entertainment. “The Future of Television”, “The Future of
Gaming” and “The Future of Entertainment” are Service Marks of NanoTech Entertainment. All rights reserved. All other marks
are the property of their respective owners.
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