long email from Mr Rossi...
Good day, –
I truly hope all is well.
First, I wanted to apologize for our status of our corporate stock. We’re constantly improving our processes to be able to file on timely manner. Obviously, the “stop sign” is in effect only because we have no posted financials in 6 months, which is always a clear risk between Q3 and Q1, with Q1 being the audited F/S that tend to take longer to finalize than any of the Q2/3 reviews. We are working to finalize our financials and a lot of delays are outside of FNHI’s control.
Of course, we plan to post up financials within the near-future but I have been unsuccessful in getting exact date(s). All I can say is that rest assured we’re working as hard and fast as we can.
Our primary focus is the company (Truxmart) as well as its parent, FNHI. While focusing on financials and posting our 10K audit report, we’re also working hard during, what few care to know about, is known as “patent season”, as well. Patent season at least for us is the time when we review all of our patent applications and PCT’s and work on our IP portfolio – so it is rather time consuming.
I will say that we have no control over the markets valuation of our stock price. All we can do is speak with our investors (those who invested directly into FNHI) and shareholders (those who purchased our companies common stock from the open market(s)) and advise them that we’re working hard towards developing a real and solid company. Doing so takes a lot of time and capital.
On the capital front, the easiest type of capital accessible to micro-cap companies comes in the form of cash in exchange for a convertible note. Simply put, we can fund the company quickly so we can move faster on developments – but the fastest and easiest way to do so would result in one or more issued convertible notes in FNHI. That would result in derivative liabilities as well as an uncertain amount of shares that that debt can convert into. This can result in larger dilution, which then can ultimately result in a lower trading price for common stock (per your point below).
In sum
Growth capital would certainly assist the company in revenues and further development. However, to do it “quickly” would beg the issuance of convertible notes in FNHI and it may result in larger dilution which would get us to the same problem.
However, we are taking a patient and unfaltering approach to the growth of our company which means doing things (in our opinion) the right way. This will result in fair capital for our company that will allow us to build a strong business and brand while bringing the best shareholder value possible. At the same time, we’re working hard towards both getting current as well as implementing new procedures to avoid the same circumstances in the future.
We are working as hard as we can and doing things as carefully as possible. We want long-term investors and shareholders that see the value in what we are doing. I understand completely that there may be some shareholders and investors that may be impatient and worried because of the trade price in our stock. To that, all we can say is that good things to take time.
I remember my younger years, when learning how to drive. The first thing my father did was place a piece of duct-tape over the rear view mirror. What he said was profound beyond simply learning how to keep a car straight. “Don’t worry about what is behind you, just focus on the road ahead”. To me, that always meant a lot more than it was intended and my focus is the long road ahead, for which I am prepared and eager to travel. Grow FNHI and its underlying company to something different, something special. All we need is time, and money.
Warmest regards,
Steven Rossi
Truxmart
