***0MID Q&A UPDATE***
Hi John,
Thank you for collecting and bringing these questions to my attention; I'm thrilled to answer all of the questions to the best of my ability whether it is through this response or through PRs in the coming months.
You will find the answers I have for you at the moment in blue below.
Best regards,
Adam Frank
- When are we planning to uplist to a higher tier exchange (QB)?
Based on the letter to shareholders, which was press released on 02 March 2021, I intend to initiate the auditing process this year. Generally, this process is expected to take 3-6 months to complete
- When will our finances start the auditing process?
See above and standby for an update
- Have we expanded at all, locations or employees?
In order to maintain a flexible schedule for decreasingly-sporadic orders, we have brought on a couple additional full-time employees in the past year; we utilize temp employees to help with production from time-to-time.
- Do we have any open purchase orders (PO's) that you can share?
Standby for an update
- When will the 10Q/10K start separating the 4 brands so shareholders can see how much revenue is coming from each brand?
I saw this request for information several times. I will attempt to break it down but per the FRC report, 90% of our current business is for private label customers which I am not currently authorized to disclose. We intend to continue to expand our brands in a cost-effective way and as they generate a larger % of total revenue, it will be broken down.
- When will the company's website start showing the newest brand being Champ Life?
Champ Life is a brand that is in development. We may launch a few items under it which will ideally be marketable to a broader audience than our current hemp-infused products.
- Why doesn't the company's website work on OTC Markets but yet the one in the IHub I-box does and it appears both seem to have the same URL spelling?
I just tested this and confirmed that the issue is due to the "www" included on OTCMarkets. Thank you to whoever noticed this, it will be fixed very soon.
- Why didn't the company do a share buy-back instead of a reduction and where did the reduced shares actually go? Where they retired or rolled up into preferred shares?
Share buybacks require a lot of cash/capital to execute. We are currently profitable but we have many opportunities to utilize our capital for growth rather than buyback.
- Is there any chance of a share buyback?
This is not an anticipated activity at the current time but we will remain open to the option if an extraordinary opportunity presents itself.
- Have any limitations on shipping impacted our sales and earnings for the 2nd quarter?
Shipping and general component availability remain a challenge but we have been successfully navigating these hurdles.
- Can we expect a preliminary earnings report or press release prior to the actual Q2 numbers hitting the wires?
I usually intend to do this and have had one prepared but I wanted to include additional information which I was unable to share at the time - we now calculate tax obligations quarterly and these delay the final data beyond the previous timeline. In addition, we were informed that sharing these numbers prematurely may create issues if there are accounting adjustments that must be made later. To mitigate this risk, it was decided that we should wait to provide this info.
- Have we needed to dilute shares to raise capital recently and do you expect to in the future?
Unlike most companies at our level (and especially in our industry) we do not need to dilute to maintain a growing operation. To be clear: we have not diluted in any way since we took control of the previous ("AVOP") ticker in February 2020 - this includes Kevin and I issuing our own personal shares for small acquisitions such as Champ Life.
As a shareholder myself, I intend to defend all shareholders from unnecessary dilution. As new opportunities arise, where new share issuance is expected to increase the overall value of the current shares, we will opt to increase shareholder value which is again, entirely optional at this point.
- What are we doing to bring awareness to OMID?
Aside from FRC analyst coverage which will continue for one full year, we have begun some other strategic awareness campaigns which you will likely notice within the coming months.
- Was the Article written by Fundamental Research Corporation a paid report and why didn't it include news of the recent share reduction?
Per the disclaimer at the end of the FRC report: we paid them to conduct a third-party independent analysis of our business. What they have included in the report, including their opinion on the share value and buy/sell/hold action to take, was entirely their opinion and was contractually not influenced by us.
- Have we been working on assembling our sales team and if so, have they started selling products yet with any success?
We have initiated some strategic actions to fulfill this obligation and grow the OMID brands. I will provide an update on this.
- Does Adam or Kevin hold any common shares?
Kevin and I continue to hold a number of common shares (you will see in the Q2 financial report); however, our common share position is significantly reduced due to the recent common share reduction. Importantly, by reducing the number of outstanding common shares, I believe we have demonstrated confidence in our long-term expectations for OMID. We have not publicly sold our shares but if we did, our quarterly maximum was reduced from ~2.6M to less than 1M commons through this recent reduction.
- Have we made progress on any certifications with the State of New Jersey preparing us for the recreational marijuana industry?
We continue to follow the developments in the NJ recreational marijuana industry; we are still awaiting further guidance and regulations to be communicated by the regulators. Fortunately, we do not need to be in the recreational market to execute our aggressive growth plan which we expect will add shareholder value.
-In terms of the recent shareholder letter, when can we expect to start hearing something on the benchmarks (or goals) that the CEO has set.
I usually prefer to allow the shareholders to follow our activities throughout the year and confirm for themselves that we have met our stated objectives and obligations. If it is broadly desired by the OMID shareholders, I can outline our executional success at the end of each year.
Finally, I saw some questions regarding my brother, Jesse Frank's, involvement in the company. I can confirm that he is still involved with OMID and helps to facilitate production-related activities on a day-to-day basis.
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Best regards,
Adam Frank
Chairman & CEO
OMID Holdings, Inc.
OTCPINK: $OMID
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