26 February 2020 Letter from the Chairman & CEO
Dear Valued Shareholder:
Letter from the Chairman & CEO
26 February 2020
Today, I would like to welcome you to our new company and provide an update on our business. The recent name and ticker symbol change - from AV1 Group, Inc. (AVOP) to OMID Holdings, Inc. (OMID) - is more than just a brand or marketing shift. It truly represents the birth of a new publicly traded company. With this letter, my intent is to shed light on the journey so far and road ahead.
Our History
OMID Holdings, Inc. has been in the CBD business for over 4 years. With a focus on cannabidiol (CBD) derived from hemp, we established our mission: to make high-quality, high-value products that consumers enjoy while truly experiencing beneficial effects. We initially achieved this with our bottled CBD vape products under our Shangri-La brand.
In the spring of 2018, we built a clean room and began manufacturing our products internally, leveraging my experience as a quality engineer in the medical device manufacturing industry. By manufacturing internally, we obtained greater control over our supply chain while improving our profit margins. It also enabled us to offer private label manufacturing services. We were the first brand to manufacture and launch CBD vape pods in the summer of 2018. We obtained distribution channels across the United States with our Shangri-La CBD vape pods and vape pen devices. In late-2018, we moved to a new, larger facility complete with a larger clean room.
The current facility is both FDA-registered and Food Grade Certified. We stand prepared to apply for additional certifications and licenses as we continue to invest in our future. In 2019, we developed and introduced our other primary in-house brand: Naturally Peaked Health Co. Our goal with Naturally Peaked was to target first-time CBD users who would respond well to our slogan: “Live Your Best Life, At Your Peak”. We have received positive customer feedback for our products and achieved grass-roots success with both of our in-house brands.
Building on a Strong Foundation
Our operational strength has been bolstered through the following achievements:
? We have demonstrated a strong use of limited capital resources
? We have invested in building strong customer relationships
? We have a professional and experienced management team
? We are flexible with low operational overhead costs
OMID Holdings, Inc. | a Publically Traded Company (OTC PINK:OMID) 1
26 February 2020 Letter from the Chairman & CEO
Our Business Model
Our services are scalable, easy to implement, attractive to industry leaders, and provide tremendous value for the end customer. During the past year, in spite of a difficult regulatory environment with respect to the vape industry, we have successfully developed multiple new distribution channels for our products. We are looking forward to leveraging our sales channels through the expansion of our product lines. As the brands we manufacture continue to grow, they will present new revenue opportunities over the coming months and years.
Our Revenue
Some of the most valuable benefits of the reverse merger include an expanded network of professionals, additional exposure for our brands and services, as well as a stronger financial position. We are in the process of completing an audit of our financials and are eager to share the results. In the meantime, I am happy to report that our unaudited 2019 revenues exceeded $500K – with YOY growth exceeding 40%. We are confident that 2020 will be a strong year for OMID Holdings, Inc. In the months to come, we will share news about new projects & contracts.
Our Key Initiatives
1. Increase Marketing Activities
We intend to establish a solid presence and reputation in the public markets which will increase awareness of the OMID Manufacturing brand. With most of our current private label customers initially obtained through word of mouth, we expect improved communication to yield a variety of benefits. Effective marketing will not solely increase revenues but it will represent additional value to our customers through broader exposure of our in-house and private label brands. Marketing efforts will focus on building our brand via social media, interviews, trade shows, and frequent updates for our shareholders as we make progress toward achieving our goals.
2. Expand Current Sales Channels
The maximum potential revenue from our current sales channels are yet to be realized. Therefore, we will revitalize and expand our product lines with higher quality and better value products. In addition, we hope to innovate and market novel products that the general cannabis industry has yet to discover and/or recognize. We will gradually improve our facility in order to meet government regulatory requirements and growing customer compliance demands.
Conclusion
Today, with our growth as a health and wellness company, we are continuing to increase our footprint through networking and marketing efforts in the aggressively growing and rapidly evolving cannabis industry. We believe that our experience and expertise, paired with our efficient, cost-effective operation has positioned OMID Holdings, Inc. for success.
We expect to achieve operational resilience through regulatory preparedness and by capitalizing on new opportunities. We do not compromise with our commitment to product safety, quality, integrity, and overall value which sets us apart from much of our competition.
OMID Holdings, Inc. | a Publically Traded Company (OTC PINK:OMID) 2
26 February 2020 Letter from the Chairman & CEO
With continued innovation and hard work, my team and I look forward to earning the support and trust of our shareholders. I would like to publicly state that I consider our shareholders as an extension of our team and will strive to build a friendly shareholder relationship through regular communication and updates.
Over the next few months, we are going to be focusing on continuing to acquire new private label customers while introducing new brands and products to the market. In the meantime, please review our various websites and social media accounts. Should you have any questions, comments, concerns or ideas: please do not hesitate to contact us via email at info@omidholdingsinc.com.
Respectfully,
Adam Frank Chairman & CEO OMID Holdings, Inc.
Safe Harbor Act:
Forward-Looking Statements are included within the meaning of Section 27A of the Securities Act of 1933, and Section 21E of the Securities Exchange Act of 1934, as amended. All statements regarding our expected future financial position, results of operations, cash flows, financing plans, business strategy, products and services, competitive positions, growth opportunities, plans and objectives of management for future operations, including words such as “anticipate,” “if,” “believe,” “plan,” “estimate,” “expect,” “intend,” “may,” “could,” “should,” “will,” and other similar expressions are forward-looking statements and involve risks, uncertainties and contingencies, many of which are beyond our control, which may cause actual results, performance, or achievements to differ materially from anticipated results, performance, or achievements. We are under no obligation to (and expressly disclaim any such obligation to) update or alter our forward-looking statements, whether as a result of new information, future events or otherwise.
OMID Holdings, Inc. | a Publically Traded Company (OTC PINK:OMID) 3
