09.10.07 Town Hall
Share Dilution
Posted in Announcements, Investor Relations at 12:42 am by adol77dai51
QUESTION:
Is the Company diluting the stock? Straight up, simple answer please.
RESPONSE:
Yes, the Company has issued additional stock recently. Which will no doubt raise a number of additional questions, answered below.
The key factor is that we have added value to the Company well in excess of the additional stock issued. As will become apparent, the Company is further ahead today than it was before issuing the additional shares. Each day brings us closer to realizing that value.
There will be more announcements in due course. We are still on track to end the year very strongly.
1. Has it driven the stock lower?
2. Why issue more stock?
3. Why has there been no previous disclosure?
4. Why not pay Cash instead of stock?
5. Why focus on another new business area?
6. What is the current outstanding number of shares?
Has it driven the stock lower? We don’t think so, as regulatory requirements stipulate that this stock must be held for a reasonable period of time before it can be sold by the receiving party. As we posted earlier on the Town Hall, we believe it was shares purchased in the last round of 504 stock issued that were being liquidated. We also have to consider the possibility that Jack Chang is selling off all his shares, before any litigation is begun.
Why issue more stock? The Company has acquired additional shell companies, for use in our IFGX.com website. These have become important investments for the Company. Recent negotiations around the world have had an unexpected side benefit. We have been approached by a number of private companies that desire to go public.
We had to evaluate the pros and cons of assisting these companies. The bottom line is that it will bring significant additional revenue into the Company. More importantly, it will help solidify business relationships with potential clients in our lines of business, with whom we are currently in discussion.
IFGX has been on the shelf, and inactive. We had initially acquired a few shell companies for its operations, but had put those on hold pending the final decision whether to up-list or not, as well as possible spin-offs of core divisions as they mature.
This new demand required additional shell companies be available. We also needed to completely revamp the IFGX website, which should now be up early next week.The immediate benefit to the Company is the value of these shells, ranging from $500,000 to $750,000. IFGX now has a total of 4 shells in inventory, all of which can trade on the OTCBB venue.
Why has there been no previous disclosure? As we have advised, on a number of occasions, we cannot always provide real-time information, particularly for negotiations that involve third parties. There is also the very real issue that we need to be sure that any action we announce, and we better be able to execute, particularly after our experience with Jack Chang.
Why not pay Cash instead of stock? Our liquid capital is required for ongoing operations. Many of our core businesses require cash on hand in order to deliver our financial services. As we are focused in a number of financial service areas, we need access to liquid capital.The stock issue brings us to a point where IFGX is ready to roll. This service will generate significant cash flow upon consummation of its first deal, which can then free up additional capital for all operational aspects of the Company.
Why focus on another new business area? There was some trepidation associated with the decision to pursue this avenue. However, we are of the opinion that the benefits are very worthwhile pursuing, both from an income perspective, as well as relationship building with key contacts we wish to develop.
What is the current outstanding number of shares? The total number of outstanding shares has risen to above 10 billion shares issued. This includes financing of the new shell companies, as well as software development etc. The current number of outstanding shares will be posted to the Pink Sheets by Monday.
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Minaco-Tradex Relationship
Posted in Announcements at 12:41 am by adol77dai51
We have had a lot of requests to explain the nature of our relationship with Minaco-Tradex. As we have previously advised, they are a private company, and are under no obligation to provide a public analysis of their business.
However, we have requested that they make an exception, and they have graciously provided some insight into their interests in Esprit. We have reprinted their email in its entirety.
from Investor Offices <minacotradex@yahoo.co.uk> hide details 8:27 pm (14 minutes ago)
to espritfinancialgroup@gmail.com
date Sep 9, 2007 8:27 PM
subject Interest in Esprit Financial Group
signed-by yahoo.co.uk
Dear Garr,
Further to your request of last week, we are responding with an outline of our corporate relationship with Esprit. As you know, we prefer to conduct our business in private, but in light of the furor that seems to have erupted around this issue, we are making an exception in this case.
You should know that I visited the Investors Hub discussion board, and was shocked at the negative speculation surrounding your activities. I tried to intervene with some third party assurances, and was quickly ejected by whoever manages this website. I guess they have no concept that we may be in a different time zone 6 hours ahead of you, and we don’t normally conduct business on a Saturday morning. In any case, I hope that this official response may help calm the waters. Please feel free to post it on your Town Hall. As an aside, I think that the level of transparency you have committed to is more trouble than its worth.
To Whom it May Concern;
Minaco-Tradex is a private Company that provides merchant banking services for emerging growth companies. We have had an informal relationship with Cash Now / Esprit Financial Group since it was initially founded, and we are very familiar with the initial success of the Company in the PayDay Loan industry.With the in-house Internet expertise of the Company, we have occasionally called on Esprit for assistance registering websites, and e-mail marketing initiatives.When Cash Now suffered an extreme setback after the head office was rendered inoperable by the hurricanes during the summer of 2005, we provided interim financial assistance to allow the company to survive.
More recently, Esprit’s diversification into other financial services has attracted our attention. We have been in discussions with Esprit regarding growth opportunities in China. In addition, and of greater interest to our core business, are the opportunities within Esprit’s IFGX business portal, and the need for merchant banking services to assist a number of private companies identified by Esprit seeking to go public in North America or Europe.
On review of the capital requirements needed to move forward in China and the IFGX projects, it became obvious that there was a need for liquid capital to be made available to Esprit for bridge funding and short-term capital requirements to execute against Esprit’s corporate growth strategy.
In addition to providing a line of credit to Esprit, we also anticipate providing merchant banking services for Esprit’s in support of a number of deals Esprit has in development to assist private companies going public in North America and Europe.
This strategic alliance will bring together the necessary resources to successfully meet the needs of currently identified projects, and in anticipation of additional deals that are in the very early stages of development.
Regards,
Zoran
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Jack Chang Follow-up
Posted in Announcements at 12:27 am by adol77dai51
Esprit will be pursuing appropriate legal action against Jack Chang in regards to his actions while head of Esprit’s Advanced Electronic Funds Management (AEFM) division.Specifically, we will be looking for compensation in regards to written commitments made to Esprit regarding the provision of Check 21 and prepaid Visa/Mastercard from third parties, as well as his actions in regards to the previously announced business deals with the Union Bank of Nigeria and provisioning of payroll services for cruise line employees.The Company will be removing him as an officer of Esprit at the earliest opportunity.At this point, Esprit will also contact the appropriate parties to evaluate Esprit’s legal standing with regards to the Union Bank of Nigeria and service providers associated with the cruise line payroll project.
It should be noted that the Company has repeatedly tried to contact Mr. Chang by phone, mail and e-mail. Mr. Chang has failed to respond to any of these communications in any fashion.
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