Update
Posted by kcmholdings on April 1, 2012
Here is the update. Please read carefully.
We have not heard from the SEC yet. At the risk of making a grave mistake by over communicating, let me explain what is going on so that those of you that feel I am withholding information can truly see how much my hands have been tied.
We were fined by the SEC. Instead of fighting the fine I agreed to settle. Although I feel the fine is outside of our capacity, I did not have the resources to attempt to negotiate without the risk of even heavier penalties. I want to communicate to our investors the size and nature of the fine, along with what we are doing to move forward, but I have not received confirmation from the SEC. Therefore my legal counsel has advised not to put anything out until we are absolutely sure this is over. This is what I have been waiting on for two months. I have received nothing. I sincerely hope you understand why I have been reticent about putting out news. If I put out all this news, and it turns out we have further complications, then this would look worse than waiting and being silent in respect of our legal situation. I am sure you would agree this is the responsible thing to do.
Until the SEC confirms, I cannot move ahead on anything from a public company perspective. The last thing we need is for KCMH to be shut down completely. This is what I am working against right now. It is the reality. For those of you expecting the stock to rebound in the near term, I am sorry but please manage your expectations. I am just trying to keep KCMH open amidst adverse conditions.
What I CAN move forward on in the meantime is financially stabilizing the company through our streams of business. We still have the retail subsidiary in Florida. Same with insurance. Both are making money.
Which brings us to our financial reporting. This IS being worked on now. But I am taking over an old accounting history with people across North America. However it is progressing and will be completed ASAP.
As stated, I am choosing not to report on any new business model progress at the risk of over-stepping my boundaries as far as legal compliance. Also, the people I am doing business with really do want us to get to our new name change so that the stigma of the old company does not taint new business deals. I am protecting all parties involved.
Let me reiterate. I have decided not to put any of our business associates at risk by prematurely associating them to our company before we are free and clear. Our plans and execution are all happening under the radar for now.
The plan is STILL the same. Financially stabilize the company by doing proper business. Get us financially up to-date. When we are settled with the SEC we will start paying the fine. We will pay for a complete name change overhaul. Then we will start releasing proper news with positive progress as a new company. All of you know that I never intended to be the CEO of a public company. I am not built for it as many of you can clearly see and have communicated to me. My position as CEO is an interim one, however I am committed to the company for the long haul. I am working diligently on redeeming our past and setting this company up for the future. I believe it is possible. I will stay as long as it takes. I have way more at stake than any public shareholder in this. So please understand that I have much to gain or lose and am doing all I can for the sake of my family’s well-being and all of our investors as well.
We will not leave any shareholder behind. If that weren’t the case, we would have jumped ship and saved ourselves a boat load of grief a very long time ago. We are still here. We are still doing business. We have not played games and diluted the stock with “awareness programs” for a quick exit. That should be at least a small sign of encouragement to you.
The need for patience has never changed. There are factors out of our control. But business continues.
Respectfully,
Ed Kang
