NEWS OUT--but is this good or bad?
Over the last several days the stock of our Company has taken a severe beating. Our market capitalization has been greatly reduced and shareholder value has taken a big hit.
High volume and tanking of the stock has been traced back to the most recent funding the Company did which was for 20 million shares. Rapid Fire Marketing has dealt with this particular funder before and they were generally cooperative in the agreement to sell shares only on high volume days and liquidate small amounts at a time.
However, this time, this particular funder was wholly uncooperative. A total of well over 100 million shares were traded (mostly sold) in the interest of getting out of their position quickly.
In correspondence with the funder late yesterday they acknowledged that they were out of their position and wanted to know if we wanted to do another round?
The Company’s response to this was negative. We will never deal with this funder again.
It is our goal to get the Company into a cash flow positive situation as quickly as possible. We do not anticipate doing any more fundings unless absolutely needed. We believe the sales of CannaCigs which we are working on now combined with increasing our client load with regard to consulting will enable the Company to operate free of the need for additional fundings via sales of stocks to private investors or funders.
In time we expect the stock to recover. But in the meantime we are working as hard as we can to fulfill the demand and anticipated increasing demand for the new CannaCig. We are working with individuals and groups to bring the CannaCig to as many dispensaries, as quickly as we can. The demand for the CannaCig has come from not only California but other states as well. We also have enquiries from overseas which we are working on with regards to the legal ramifications of overseas sales.
A big part of the need for recent funding was to purchase enough materials to produce a significant number of CannaCigs. We have enough funds to finish the first round of production. The second and subsequent rounds of production are expected to be financed through revenues achieved through first round sales.
Finally, many of you that will read this update have corresponded with me through email. I understand your anger and frustration. I have owned lots of stocks in the past that took big hits. While I do not personally own any shares of Rapid Fire Marketing it is my sincere desire that every shareholder benefit to the maximum by investing in this Company. I will continue to answer all of your emails (even the negative and accusatory ones) and keep you updated as best I can. But, at the same time I will continue to work as hard as I can with RFMK and our new distributors to make the CannaCig a huge success.
Tom Allinder
Business Development and Shareholder Communications
Rapid Fire Marketing
tom@rapid-fire-marketing.com
