Hello Shareholders and future long term investors,
I just wanted to take a few minutes to send a general update of what I can discuss.
I do know many are as frustrated as we are at Net Savings, Global Distribution, and Bella Vida.
We do share in the frustration as we try to move forward.
It does seem in this business of a public company, that most do not share in the same sense of urgency as the shareholders do.
I have learned a great lesson in patience, as I have started working on this side of the investing arena.
I wish we could share more information on the tie ups, but because of disclosure, I can not. I will say this is beyond the companies control and we do have to work with the companies and agencies that are slowing us from becoming a revenue producing company.
That is the main topic of this email tonight, working within the parameters of the market in the sub pennies to become a revenue producing company. I will be frank and straight to the point ,as I always have been. For those who have known me for years, you know I do not like working with some in this market. Unfortunately it is what they call a necessary evil.
The process of moving from a company that has never produced revenues to a company working toward revenues is even harder then I could imagine.
I know many watch Shark Tank and they make it look so easy lol.
Well, on this side of the issue, in the penny markets, we do not only have sharks, we have wolves and bears trying to chew us up as well.
I will let you all see a brief glimpse to help explain the issues of becoming an actual real company with real revenues and real intentions of increasing equity for the shareholders.
Below is a list of issues we have worked our way past in the last six months. Which for the shareholders, me, the board and especially Steven, seems like an eternity.
First you have to acquire what you hope to be a clean avenue or shell to the market to build capital to make a real company. We all now know the issues of taking over an existing company. We have worked past the huge debt from years of salaries on convertibles.
The next lesson is to find the costs of doing business in the public market is even more expensive then most imagine. The filing fees with the State, Sec, Finra and all our own partners for plus the exorbitant amount of state and federal costs with the OTC are huge. Every partner we have has huge fees as well. I read recently that the fees can amount to well over 100,000.00 a year for just the pink companies and even more for upper markets. I do know all I have dealt with talk five and ten grand for everything we need to achieve.
The financing is like going to the sharks but not as many choices. I have explored many avenues of financing and most are closed avenues till you actually have both time and revenues for the company. This has not slowed the board and myself to continue too explore all avenues we have to increase the companies equity for the shareholders and the growth of the company. Even Steven has let all know that we will maintain the lowest costs possible even with no salaries till the company is producing revenues. They have limited the burden of the costs of public releases from the shareholders to make sure they spend that five or six hundred dollars wisely.
The wait times of all the agencies are unbearable at times and even frustrates the largest companies like Pacific Stock and even Merrill Lynch. I have been working in three different avenues to clear the trading across all brokerages. The one point we have found with consensus is that it is very time consuming to work with the DTC. The company has a full service transfer agent with Pacific working toward this and we have had even a few brokers helping us so they can clear shares for their customers. We all hope to hear something very soon from the DTC.
Everyone you deal with has a hand out for more cash to get anything done. They even try to collect fees for stuff that need not have a fee. I have found five and ten thousand the going rate for almost everything. Steven and I have had to explore other avenues and make sure that all the funds are really needed to be spent at this time. Were we can save, we have saved and were we need to spend strategically we have tried to save some of the costs.
Things seem to happen at the worst times and slow everything to a snails pace. It does seem many others are effected by the same issues as in the case of our transfer agent passing and having to transfer 200 companies business. My prayers go out to the Family of Tom as they have had to endure two passing this year.
Finally ,when you think all is done and ready to move on, they invent another form or paper. lol
This is the stage we are at and just waiting on the edge of our seats, like the rest of the shareholders, as we try to move to a revenue stages.
This will move us beyond the other companies and stories in the pinks. This will be the hardest transition as we explore much better finance options in the future to grow the business.
Yes, as we grow the revenues, we will move away the convertible financing and on to other long term financing. This is the one largest lesson I have learned. Many companies are out there for financing but it seems you have to earn the right of passage first out of the convertible financing before those doors open. In one way or the other it all is based on the only asset of the company with out revenues, that being the shares. Of course this is were we are lucky enough to be able to share in the growth, By providing the assets to the company in cash by purchasing shares.
The true nature of the greatest market in the world. The US Stock Exchanges.
We can increase the assets against the liabilities of the company with this merger. As we increase the revenues and assets, then we will have traditional financing avenues with banks and other lenders for long term.
I do not like having the stock as the only asset of a company, but in this instance, we are using this to bring real value to the shareholders with a great merger. I do hear so much about stock and dilution, and believe me, I prefer to just give away the assets of a company for free. Unfortunately that is not how it works in the stock market.
We try to balance the increase of equity for the company with the only asset the company has with no business revenues, that being the shares for collateral. At the start of a new company it does seem to be endless. What happens next is where we see the rewards. By this I am saying; we now have to entrust the new board and company to increase all our equity with sales, revenues, mergers and great management skills.
This is how we make the best returns in investing long term. This is were the lower penny markets are changing, they no longer are able to just fake a company, dilute and move on. The rules changes and the government are getting much better at keeping pennies honest.
I believe I have aligned myself with a great management team, with integrity, ethics and the drive and desire to succeed. As long as I see this integrity, drive and desire, I will be proud to help the board move this company to the next critical level. That is too pay off the next round of convertibles with better terms as a company.
Please be patient just a little longer, as we finalize the last step of bringing the great sales team of Bella Vida brands into our business.
I do want to say first most, Thank You for entrusting the company with your hard earned funds and we look forward to growing those assets in equity in the long term.
Please keep an eye on the news for further updates from the company as we move to the next stages.
As always ,please feel free to reach out and I will help. It may take a day or two as my full time work is very busy. Heck I even made employee of the month their twice last year out of four hundred. It is a hard job ,but I will get back as soon as I can.
David Pecoraro
814-418-6648
Text, email or call I am here for you all,
