Dear Shareholders and Investors,
I wanted to give each of you a quick update on our progress with the Depository Trust & Clearing Corporation (DTCC). I have been in constant contact with the DTCC since last week, and I have been assured that the problem is not serious, and it can be easily resolved. Hall of Fame Beverages, Inc., has not been revoked and there is no freeze. Red flags were raised at the DTCC when past management continuously increased the authorized shares count and issued those certificates. Because we're not a member of the Depository, there was an obvious concern with this behavior. As you all know, my focus has been to reduce the structure, and I immediately recognized the problem with our share structure and the incessant dilution in the past, and took the first of many steps to end that culture here at Hall of Fame Beverages.
I am currently in the process of gaining representation at the DTCC through a brokerage firm that is a member of the Depository and will act on our behalf from this point forward. It is common practice for a brokerage firm that is a member of the Depository to act on behalf of companies who are not members of the Depository. This representation or "sponsorship" will allow us to have a voice inside the Depository and immediately continue our normal trading with all brokerage houses again.
I have been assured that with the representation, the Depository will no longer have any issues with Hall of Fame Beverages. I have also been made aware that we will not be charged any fees/fines by the DTCC as this is simply a red flag issue and not a non-compliance issue. I will keep you all updated on our progress, and because this is a red flag issue that can be rectified simply by having Depository "sponsorship," it should be resolved very quickly.
Thank you for your patience.
Jessica Gutierrez
President, CEO
Hall of Fame Beverages, Inc.
