Response from CEO:
Andrew, thanks for your email.
My decision on a R/S HAS NOT and WILL NOT change despite what people say or want to believe. It makes no sense with my objectives for the company.
So, I am sorry to tell you that your analysis is incorrect. The uplisting will occur without a R/S and/or share buy back. Please save this email for future reference when the uplisting occurs.
Take care and thanks again for reaching out; I do appreciate it!
Tony
Anthony M. DiBiase, Jr.
President & CEO
Encounter Technologies, Inc. (ENTI:PK)
6313 Corporate Court
Fort Myers, FL 33919
239-415-1525, ext. 251 (ph)
239-236-1442 (fax)
tony@encountertech.com
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On Jan 18, 2011, at 3:12 PM, Andrew wrote:
Tony,
I would like to start by first saying that you have done a great job in turning around the company and getting a solid business plan together with Music Matrix since taking the position.
As you have probably noticed we have remained fairly stagnant in the price action of the stock for the past few weeks is beginning to decline again, granted the volume has been low. Taking a look backwards ENTI’s pps held around .001 before Music Matrix was promoted with a share structure around 2.5B from what I understand. I have been an investor in the company since April 2010 and as you can guess I am still at a loss. With the share structure now around 7.3B (approaching the A/S of 10B) and probably nearly a 5B float the stock has had great difficulty even holding a pps of .001. My question to you in all sincerity is will a reverse split be part of the OTCBB uplisting planned for the near future? I realize the answer has been no when previously asked but given that ENTI probably supported at its peak a market cap of 28 million I do not see how uplisting to the OTCBB will be accomplished without either a share buy back (I assume the company is not in position to make this move at this time), retirement of shares by management, or a reverse split. My rational is let us say the expected price of ENTI is probably a penny after uplisting as from your comments on the podcast. This would represent a market cap of 70+ million dollars and that would strongly over value the company, if you anticipate a starting price in the range of .003-.005 after uplisiting this would be in the ball park of the company’s peak market cap during the run in 2010. I promise you many investors are thinking the same thing when it comes to the uplisiting given the fact that the share structure is enormous at this stage in the game and reverse splits of anything greater than 1:5 typically wipe out all initial investor equity. Please take our investments into consideration before any sort of reverse split as many of us have thousands invested here and don’t want to see a situation where only new investors after the fact can see profit.
Many thanks,
AI
