On4 Communications Inc (ONCI)

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Letter to shareholders:


NEW YORK, Feb. 05, 2018 (GLOBE NEWSWIRE) -- via OTC PR WIRE -- ON4 Communications (ONCI) -- Below is an update of most everything that is going on at the company, some you have heard about and some are new. I will be discussing everything that I can talk about.


Financials
We had a stellar year, grossing over 1.8 million from nothing last year we were up 50 plus percent quarter over quarter and far out-paced expectations. With regards to the 2-million-dollar payment that was to buy the remainder of FMS marketing that we did not own, Alan Baily and I are in negotiations with the Del SOS to reduce the debt owed. The debt is nowhere near $900 thousand that is a number that they put on all companies until they file. In regards to the share reduction I stated on page 2 that the reduction has been reported with the Colorado SOS and is under Hexagon Holdings. As soon as we get approval, the share reduction will be in place. I have also reduced my commission rate to 12.5 percent, a 50% reduction, so we will have more cash for all the things we need to do. Overall, I’m thrilled with our financials and we are growing very fast signing deals every week.

KL
We are in the process of making our mold, which will allow us to reduce our costs by 50%. Each mold can make 150,000 to 200,000 units. I will be travelling back to KL to start production shortly.

Garden City Group
They have 150 units and are selling now. I will be reporting sales at the end of the month.

Penn Group
They have units and are selling now.

H Group NY
They have units and are selling now.

Gunther Fla
All stores have units and are currently selling.

San Antonio
I am told by my Rep. Scott Wells that we will be getting an e mail with bid requirements shortly. Nothing ever moves fast with Government.

Municipalities
We are in discussions with a group that sells software and hardware to all government agencies both Local and Federal in 21 countries. I will release the name when a contract is signed.

Growth of our marketing team
We have engaged two major automotive after market product sales agencies. These agencies sell into multiple channels in the automotive industry including but not limited to internet sales, direct sales to the major auto parts chain stores, direct sales to auto parts distributors, wholesale warehouses and direct sales to automotive dealers. The combined total of new sales representatives is 21 now covering more than 50% of the country.

We are near completion with signing contracts with 2 other sales agencies that will bring another 29 sales representatives that would cover the entire US. In addition we are in negotiations with another two agencies that cover big box retailers such as Target and Best Buy to represent bSafeMobile. We are in discussions with our partners in Great Britain to take over all of western Europe and meet with them in mid March when they come to the US.

bSafeMobile has updated its back office systems (inventory control, accounting, billing, invoicing, etc.) to handle the expected increase and sales activity generated by these sales agencies.

USW
We will be implementing sale in 2 dealerships in South Fla next week and working out all kinks until we roll out in Fla first.

MIDDLE EAST
Working with Consulting/distribution agent Mr. Graham Bell. Graham has very good relationships with the Auto and technology industry throughout the GULF region including UAE and Saudi Arabia. Just returned from the region last week.

DUBAI TAXI CORP
The main purpose of my trip was to push our current best prospect Dubai Taxi “over the line” into a test mode. From there I (Graham also) can follow up and, subject to a successful test, move towards closure of at least initial unit orders. The objective is to close these initial orders and then ramp up orders over the coming months. Dubai Taxi Corp has 5500 in their fleet. Following the installation, the IT guy I was working with, Osman, was then confident to be able to download the Fleetsafer software to his computer. We have a deal memo on the table.

COLONY TRUCKS - KUWAIT
Had a very long meeting with this company. They have over 1000 trucks and construction machinery in their fleet. Went through all the advantages of Fleetsafer and how this can manage their trucks, buses, etc. as they all travel throughout the Gulf region (not just Kuwait). Jamil Malik and Alvin Lewis are the key guys there and agreed to test the system. Graham will be sending them 2 units now for testing. I will follow up with them in a week to make sure they received the units and get them to start a test. Will contact the team in Vancouver again to walk them through it.