Dear shareholders: Update
We have received numerous and diverse inquiries in the past week. Far too many to reply to individually, and we hope to address the majority here.
1) The confusion surrounding the NHGP dividend has concerned many, and this was only compounded by a typo for which I assume responsibility. Due to accounting, shareholders on record as of September 30, 2004 will receive their shares on November 15th, 2004. We were led to believe that the record date could be extended to October 15, and declared it as such only to be informed that “extenuating circumstances” involving the company’s quarterly audits would not allow the extension after all. This does not make us happy, and we are now working on and will announce dividend details for those who purchased shares of PRRM between September 30 and October 15 as soon as possible. Our working date for this distribution is Feb. 15, but this has not been finalized.
2) Regarding financials, reverse split, and the move to becoming a reporting company: the question of revenues associated with contracts/projects. The vast majority of the time projects are bid upon, and/or advertising packages customized by the sales department. In appropriate instances that involve gross ad sales associated with an event or program, we will state revenues. In the meantime, our range of video production contracts range from local $1,500.00 to $25,000.00. Contracts that are more regional or national approach $100,000 and advertising packages can range from $4,000 to $300,000. Upon completion of the fourth quarter we will investigate the opportunities that exist by moving to the bulletin board. Again, there is no R/S in our plan.
3) A few of you have inquired and/or suggested about investor relations opportunities such as radio interviews, company profiles, etc., and gladly will hear your suggestions regarding these opportunities. Currently we have no IR representation and are doing our best to communicate effectively with shareholders ourselves. We have recently received unusual inquiries regarding the employment of a promoter or firm named JT. We neither employ, nor have been in discussion with such an individual or firm, and so know no such person or firm’s phone number, address or other contact information. We have been in discussions with well known firms though we have engaged no such entities as of yet. We thank shareholders who believe in the plan for their open support; those who dislike the plan should merely not buy our stock! On this note too, we thank you for your communication with us. We appreciate ideas you have for the company, and encourage you to continue in this vein. Such contributions have included suggested acquisition targets (with links, DD, etc.), and one shareholder in Naples, FL offered his resources to help investigate the possibility of establishing a broadcast affiliate there. Florida currently has three RSN affiliates: one in Destin, one in Key West, and one in Panama City. We encourage you to email such ideas. We are not discouraging you to phone the company, we merely want to condone brevity on the phone and please email weightier ideas or concerns!
4) Symbol change: this is possible, but not something we have concerned ourselves with at this time.
5) Share structure, our plan and pps: We will increase the A/S and O/S as opportunities that we deem valuable present themselves. M&A targets have positive cash flow, established customer base, and human resources that parallel our strategy in our industries. By this plan we will build infrastructure for a network of multi-media and wholly owned subsidiaries within associated industries. If we want to acquire a $3 million private company, that would be worth say, $4 to 6 million in the public vehicle, not to mention adds value through its strategic placement, existing relationships, expanded customer base, and the benefits of economies of scale, and we can accomplish this by issuing six billion restricted shares at a pps of 0.0005 to close the acquisition then we will. We are confident that in this manner the overall value of our company and hence the price per share will increase.
6) Inquiries concerning:
· Synesi, Inc. We love coffee more than most normal people. We are proud to be involved in both companies; working within industries that interest us the most is the chief source of motivation. Simultaneously, opportunities often occur to the benefit of combined companies, while solutions that would otherwise be unapparent arise to meet formidable challenges – hence it presents more advantages than hindrances. That said, it is time consuming as Ian increasingly needs to focus attention on PRRM activities and media work. Consequently, we are adding two people to Synesi management and will continue with the micro-roaster roll-up.
· Investor dairies. Investor dairy farms are common in Kansas, California, and the west. They are not common in the northeast. This is not in PRRM’s plan at this time, but remains an interesting opportunity worth research and further investigation.
· Real Estate and construction services. While not a part of our plan specifically, we use the resources of partners’ involvement in such endeavors. For example, we are negotiating the expansion of our operations in Stowe and the design of improved live show facilities.
Shareholder quote of the day: “The obstacles aren’t IN the path; they ARE the path.”
Again, we are proud to be responsible for the growth of Prime Rate Investors, Inc.
Thank you once again,
Dan Burgess, President & CEO
Ian Lamphere, Vice President
Prime Rate Investors, Inc
Stowe TV-10/High Angle Media, Inc.
145 S. Main St.
Stowe, VT 05672
(802)253-0199
info@stowetv10.com
www.prrm.us
