Letter to the CEO
Good morning everyone and I wanted to let you know that I just decided to go ahead and send an email out to the company addressed to the CEO. I did not think it was a good idea for me to wait for all kinds of questions and the most important thing I felt was to just try and make contact although to be honest with you I don't expect any response but I believe that we as shareholders must communicate our discontent and the expected emotional outrage we have all experienced as shareholders. The objective is to try and get the company CEO to take responsibility and communicate with all shareholders because this is the least we deserve.
I sent the email a few moments ago to info@intercloudsys.com
Like I said I don't expect a response but I will follow up with a phone call as well and express the urgency off the CEO communicating with the shareholders via an official public press release.
Here is a copy of the very simple email I sent to them and again the idea is for them to just communicate with us in terms of becoming honest and giving us some visibility on Revenue projections since we don't have any analysts doing that and most importantly when he expects the company to become cash flow positive.
Dear Mr. Munro
I am certain I Echo the voices of hundreds of shareholders when I say that it is extremely important at this time for you to personally address all shareholders in light of the current happenings and aftermath of the reverse split recently executed. I strongly encourage you to address the shareholders via an Official Corporate Public Release.
First, the transfer of shares did not take place in most of our brokerage accounts and almost all shareholders were still showing pre-split number of shares. The shares were supposed to open at .1084 and as you can see and you may know there was a lot of confusion on the opening bell and the shares got decimated losing 45% on the first day and another 35% or more on the second day. This is absolutely horrific and I hope you can empathize with the outrage and discontent this caused amongst an army of shareholders that believe in this company and have invested their hard earned money in Intercloud Systems, Inc.
Second a recent filing shows that the company is engaging in more convertible notes toxic financing with the likes of Dominion resources, an entity which is known in the industry for its death spiral toxic financing. On the one hand you as the CEO are saying you desire to get rid of the convertible debt and then right after the horrific decimation of shares, the company announces engaging in more toxic financing and up to 9.9% of outstanding shares to Dominion resources.
I have been defending the company with a lot of energy but I need to reconcile my thoughts by getting an explanation from you on why this toxic financing is happening at this point while the message has been that you are getting rid of all the debt, more importantly the convertible debt , as much as possible.
Hundreds of shareholders have lost 50 to 80% of their investment. When I spoke to Larry at the company in reference to the reverse split he said that the company simply wanted the price to be at a level that would attract many more investors who would otherwise not look at the stock because of the much lower price The company has obviously missed the mark on accomplishing this objective since the company is now trading at less than $0.01 per share on a pre-split basis.
I think it's extremely urgent and responsible that you as the CEO of this company address all your shareholders either via a live corporate conference call very soon or an immediate public press release.
We would like you to address the aftermath of this recent reverse split and what it has done to the price per share and most importantly what you are going to do to address in recovery in the share price from a fundamental corporate execution standpoint.
We as the shareholders would like to get a proper perspective directly from the company on its visibility in terms of Revenue projections and when the company expects to potentially become cash flow positive and any further dilutive intent or increase in the number of outstanding shares for the company to strategically meet its obligations and continue to grow as a viable concern.
Please feel free to write back or call me personally at xxx- xxx-xxxx
Thanks
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