Replies to post #10833 on E-Waste Systems Inc. (fka EWSI)

[legster69]

I don't even close to agree.

[soblue]

Strategic Financial Plan

http://www.ewastesystems.com/wp-content/uploads/Business-Plan-Financing-Strategy-July-2013.pdf


Execution of the Company’s Business Plan requires a foundation capable of sustaining rapid growth. This foundation consists of a global brand, proprietary technologies and substantial revenues. In addition, the Company’s financial plan needs to support the potential for very rapid quarter to quarter growth over the next few years, which could be 50% or more.


This Strategic Financial Plan represents the broad financial concepts and some guiding principles regarding what are likely, in management’s opinion, to be the most efficient financial methods of implementing the Company’s objective to become a global leader in the industry through brand affiliations and selective acquisitions as a complement to its organic internal growth.

Management believes that to be a successful business, we must demonstratively prove to investors through our business performance (in the form of growing sales and earnings) that the value of the business will continue to grow over the foreseeable future. Our objective therefore is: To build a fundamentally solid public company from fundamentally sound businesses.
The total value of our Company’s economic resources is capital invested in our equity plus debt we assume. The Company must make efficient use of a combination of debt and equity in our operations to fuel growth. Equity is the portion of our Company’s economic resources that our shareholders own and debt will be used to leverage equity by using borrowed money to obtain additional economic resources. Leverage, while increasing investment returns, must be used wisely. Accordingly, the basic elements of our financing strategy are the following:


1. Balance Sheet Strengthening. We will strengthen our balance sheet and the balance sheets of our subsidiaries and key affiliates by acquiring tangible and intellectual assets. We will also convert certain liabilities into equity, eliminate debt of high burden, and avoid both short term liabilities that cannot be managed and unsustainable long term liabilities.

2. Financing for ePlant™ and other Technology. We will seek friendly third party financing for new capital equipment, such as ePlant™ and other eWaste™ systems in order to improve the operating performance of our business units. We will invest in developing our proprietary technologies using equity wherever possible.

3. Financing for our Subsidiaries and Affiliates. The growth of our subsidiaries and affiliates directly contributes to our company growth. We will provide financial support to our subsidiaries and affiliates in a manner in which the investment can lead to superior returns and within manageable and acceptable risks.

4. Manage a Sustainable Capitalization Structure. The Company has presently authorized 500 Million shares of equity, of which 490 Million are Common Shares and 10 Million are Preferred. At the start of 2013, the Company’s share price was $0.004 (January 4), the issued and outstanding was 106,504,926 shares and its market value was $426,020. As of July 19, the share price was $0.02, the issued and outstanding was 188,746,737 and its market value was $3,774,935. As the Company’s value increases with its performance, the market capitalization value should increase. It is in the best interest of the Company to have a high market capitalization, higher share prices, and strong liquidity to obtain sufficient capital for our growth and for acquisitions. Maintaining a balance of sensible debt alongside a robust market capitalization is targeted.


5. Use of Performance-Based Incentives. The Company believes in creating an atmosphere that encourages and motivates our people to out-perform the competition. Disciplined and hard-working management, professionals, and other individuals can help us meet or exceed our company’s objectives and are fundamental to the growth we seek. Incentive compensation plans tied to equity will be a key element of our compensation packages and our officers must set the example by accepting equity as a primary component of their compensation.


6. Equity as Growth Capital. Preferred shares will be increasingly used to increase asset values, to minimize current dilution of common stock and to enhance overall shareholder equity while providing for attractive means to maintain sensible voting and conversion features. Alongside preferred equity instruments, registered shares will be used to compensate qualified individuals to grow the company. Wherever possible, we will also use equity as a currency for acquisitions.


7. Debt Financing. Debt can leverage our equity and capital. We will selectively obtain debt financing, even paying premium interest rates if necessary so that we can avoid toxic convertible debt. And, we will establish plans to buy out potentially toxic liabilities by using loyal and long term investors.

8. Investor Relations, Communication and Awareness. We intend to have a strong and comprehensive investor communications plan using regular press releases, information 8K filings with the SEC, social media programs, frequent website updates; and an increasing use of CEO and management interviews and media relations programs. These are all designed to make the investing public and our other constituents fully aware our plans, accomplishments, and developments as they occur.


9. Secondary Public Offering and Upgrade Listing. The company will seek to raise capital from a public offering to fuel its growth and, at the proper time, consider migration to a national exchange like NASDAQ or NYSE to have access to higher quality and quantity of capital to fuel its desire for expansive growth.

[kawklr]

Your apprarently don't understand what Rule 144 'restricted' shares are ... there is no dilution from the 50M shares ... only get's added to the O/S, but they (like his other held shares) are not freely tradeable .... get it right ...

The only shares he 'could' trade were the 2.5M that got added to the float ... here's the key .. since he's an insider, any transactions (buy or sell) have to be completed with a Form 4.

The company to date has been complete transparent on all fronts ... expect that to continue.

Don't mislead people ... if you don't know and don't have the facts, then your 'opinions' are meaningless and misleading.

[buckyboy]

It's very possible that there are accounting rules that only allows for a certain amount of accrued salary to be paid off via share issuances each qtr. Just a guess (could be wrong).

Also, the 0033 number is not random. It was the lowest price a note holder received this year. So, the CEO matched up with that number. See the last 10Q.

http://www.otcmarkets.com/edgar/GetFilingHtml?FilingID=9308203

"...on May 6, 2013, the note holder converted $8,450.00 of debt to 2,500,000 shares of the Company’s unrestricted common stock at a price of $0.003385."

I think we get an explanation soon on just how that 50M block is going to be used as leverage to move the business forward. I do agree that this event suggests something big, and something very positive for the company moving forward.

I absolutely love the 50% qtr over qtr growth projections the CEO just provided. Don't you?