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I cant wait for MCAR to get an 8k like this from our SAME CEO!!

Corporate Initiatives and Plans



Algodon has and will continue our ongoing initiatives to reduce corporate expenses, including the reduction of operational expenses in Argentina and renegotiating with our vendors. I am happy to report we have achieved some success in this area, including savings of 25,000 USD in the Company’s Directors and Officers Insurance Policy and anticipated savings of 100,000 USD associated with certain employee expenses.



Given how our company has evolved over the past 5-10 years, we have realized that operating a securities broker-dealer no longer “fits” within our broader corporate goals. Accordingly, we anticipate either selling or winding down our broker/dealer operations in the coming months. We anticipate that this will result in significant savings in 2017 and beyond (estimated annual savings of approximately 1.5 million USD). We are excited to make this a reality.



Jim Galtieri’s action plan for the next six months includes the possibility of creating a U.S. Wine Advisory Board comprised of some of the most powerful voices regarding the direction of wine tastes and consumption in the United States. We hope to grow our brand and raise our wine sales to a higher level.



In June and July Algodon attended a number of roadshow marketing events and plans to attend additional shows during the remainder of 2016 and into 2017.



In addition, now that we are a public reporting company and, hopefully soon, a public trading company, our mission is to be able to use VINO shares as potential currency to acquire additional assets directly related to the future growth of our brand.


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Sales Initiatives


? Convert part of our NY office into a Wine Sales Office and Algodon Lot Sales Showroom/Office to introduce our wines to the trade and real estate opportunities to local real estate interests.

? It is anticipated that our first 12 lots sold will be deeded in Q4 of 2016; the deeding of these lots represent 1.8 million USD in revenues.

? It is anticipated that the second tranche of lots to be deeded (19) will be sold in Q1 of 2017. This may generate up to an additional 2.5 to 3.0 million USD in lot revenues to be recognized.

? We are increasing our potential for additional occupancy and room revenues at Algodon Mansion by becoming more active with Relais & Chateaux, and by updating our offerings on Booking.com and other online travel sites. We believe that Macri’s new business-friendly approach in attracting foreign investment will mean more business travelers. Also, since the Peso was devalued, Argentina has once again become a great bargain for tourists (15:1 Peso to USD).

? Once approved for trading on the NYSE MKT, VINO and our Algodon Shareholders’ Club can be better exposed through news releases and the financial press to target the 165 million U.S. investors (and others around the globe as well).

? Having our wines featured at Sherry Lehmann may open the doors to other wine sellers in some of the most important wine consuming states in the U.S.

? We are now making a significant marketing push to make Algodon Wines & Luxury Development Group, Inc. a big player in its home country of Argentina.

? Adding Algodon Extra Virgin Olive Oil to our product line on a more commercial basis for 2017.

? Currently in discussions to create a sales & marketing partnership with Sotheby’s International Realty and Keller Williams, and potentially others here in the U.S.

? Restructure Algodon Mansion’s restaurant as a wine & cheese/charcuterie experience. If successful, this will increase revenue, by cutting costs, eliminating waste, and make an attractive new offering.

? Google/online ads program to promote sales at Algodon Mansion and Algodon Wine Estates lot sales.

? Partnership with Jim Courier Tennis Tours to bring guests to Algodon Mansion and Algodon Wine Estates.



Anticipated Milestones and Updated Corporate Future Positioning


? The successful closing of our current 10 million USD (12.5 million USD assuming the full overallotment option is exercised) financing round at 2.00 USD per share.

? The engagement of MZ Group, one of largest investor relations firms in the world.

? We are excited to share that Marc Dumont and Steve Moel have agreed to join the Algodon Board of Directors upon approval of our NYSE MKT listing application.

? Algodon Wines and Luxury Development Group, Inc. has established a Shareholders Members Club that will enable shareholders to buy wines through Sherry Lehmann at preferred pricing, as well as discounts on Algodon Mansion and Algodon Wine Estates offerings, and other benefits.


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? Algodon Wines & Luxury Development Group, Inc. to be the first company out of Argentina to sell En Primeur “wine futures” here in the U.S. for our limited production PIMAs, as well as our black label Malbec and Bonarda.

? Doug Casey agreed to join Algodon Group’s Board of Advisors. Doug is a celebrated author and financial writer with a substantial global following. As a best-selling author, world-renowned speculator, and libertarian philosopher, he has garnered a well-earned reputation for his erudite (and often controversial) insights into politics, economics, and investment markets. Doug has been a long term advocate for Argentina, and believes Algodon could represent an attractive way to participate in the growth of Argentina asset values in the years ahead.

? Our winery expansion is expected to be completed in Q4 of 2016.

?

As reported by The Street.Com, “Argentina is the Next Big Opportunity for Emerging Market Investors” (https://www.thestreet.com/story/13466984/1/argentina-is-the-next-big-opportunity-for-emerging-markets-investors.html), they list only six ways of playing the growth in Argentina related assets. A public VINO at this point would be another one, and as their video suggests, “scarcity value” since there are only a handful of companies.

? Upon approval of VINO on the NYSE MKT for trading, we anticipate a “ringing the bell” ceremony, which as you can see from the NYSE website , could generate exposure to tens of millions of investors in the U.S. and worldwide. The NYSE has 1.4 million Twitter followers and VINO trading would likely be announced there as well.

? Our wine importer Schiahorn AG in Geneva, Switzerland, has begun expanding the importation of Algodon wines for the European and UK marketplace. I am pleased to report that they were able to get Algodon wines, Bonarda specifically, on the shelves in Paris at one of the largest wine retailers, Le Repaire de Bacchus, with 37 locations.

? We would like to further our relationship and partnership discussions with Chateau de Messey wines in Burgundy.



Other Goals for Completion in 2016/2017


? Arrange regular calls with investors and analysts

? Increase U.S. institutional ownership

? Non-deal road shows and virtual road shows – International and the U.S.

? Secure new U.S. analyst coverage for Algodon

? Attend selected premier investor conferences in the U.S.

? File an S-1 for an additional capital raise



It’s been a long time coming, but we are all excited about the future! We survived the Argentina of the past, and are looking forward to a robust Argentina in the future.



Please, if you have any thoughts or ideas, I would be delighted if you would share them.



I look forward to reaching out to you personally in the weeks and months ahead. As always, please feel free to contact me at any time.


Sincerely,

/s/ Scott L. Mathis