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SHAREHOLDER INFORMATION SERVICE
3/15/97
Subject: What exactly is the Shareholder Information Service?
Dear Shareholder:
Allow me to introduce myself to you and our fellow shareholders. My name is Jay Smith and I helped build Cancall Cellular Communications (CLE.V) from the very beginning. Although I have not been in the employ of Cancall in any official capacity since 2/1/97, I feel I can offer a better insight to you, the private investor, professional money manager or financial analyst who either have a current share position in Cancall Cellular or are considering one.
Since I have spent nearly every day of my life for the past three years helping to put together the NUMBER ONE cellular rental Company in the world, who better to explain just how our business and industry works to those of you trying to make an educated financial decision regarding Cancall Cellular Communications(CLE.V). But let me warn you, I am extremely proud of the Company and all it has achieved in such a short period of time.
Cancalls corporate growth will continue to go forward with current management in place, building out an exciting business plan calling for nearly 32 locations over the next 18 months throughout North America and Europe. This growth will increase revenues and build earnings at an exceptional pace. However, what effect all of this good news will have on the share price of a Company listed on the Vancouver Stock Exchange (VSE) is hard to assess. This affects all of us. Yes, that's right, you and I are shareholders in this company, some of us more than others, but we all want the same thing, a higher stock price!
How do we get this higher stock price? That part is easy, we just tell everyone we know about the Company and its potential and they buy stock. If it's good enough for you, it should be good enough for them, right? See, it's that easy. I wish. Unfortunately, most of you are not familiar enough with how the business really works and what exciting possibilities await Cancall in the very near future, however, I am and I'm eager to speak to any of you, your friends, family or business associates who would like to hear more about Cancall and the opportunity. I will gladly supply you with any written materials you may need to better understand why I consider Cancall Cellular Communications (CLE.V) to be the most under-valued publicly traded Telecommunications Company in North America.
My short-term goal is to see Cancall move to a more senior exchange, i.e. NASDAQ BB or the Toronto Stock Exchange (TSE) over the next 90 days. Application is being made to both exchanges. I will be speaking at numerous Broker/Dealer functions and Investment Seminars throughout North America, as well as doing radio and newspaper interviews, making the financial community at all levels, aware of Cancall Cellular Communications (CLE.V)
My long-term goal is to see Cancall trading on the NASDAQ Small Cap within the next 6 months with a minimum share price of $3.00US (NASDAQ requirements) and steady daily volume.
Press releases will continue to come from the Company as official news develops. However, I plan to issue a Cancall Shareholders newsletter with my own personal perspective on events and publish it bi-monthly for your information. If you feel you rather not have this information please notify me and I will certainly delete you from distribution.
Those of us fortunate enough to be involved in Cancall Cellular Communications (CLE.V) at today's levels have a lot to look forward to. Will it always be a smooth ride to the top? Not likely, however it should be a steady ride with consistent growth in all sectors.
Communication is the key and knowledge is power! Call me with any questions you may have regarding the Company and I will gladly share my candid, personal observations. We all want the same thing, A share price reflecting the true value and potential of the Company
Call me at 800-557-2485 or fax to 619-752-9989
Jay Smith,
Shareholder
THE YEAR IN REVIEW, 1996
What a difference a year makes. We have certainly come a long way since we opened our first rental location in Las Vegas in the summer of '95. I'm sure when we look back on Cancall's history a number of years from now we will all agree that 1996 was an exciting time.
It was almost a year ago today, in February, when Cancall was offered an opportunity small start up companies only dream about. AT&T Wireless, the giant in the Telecommunications industry offered Cancall Cellular the opportunity to be its EXCLUSIVE RENTAL ADMINISTRATOR in Las Vegas, the most competitive market in America. Of course Cancall jumped at the chance to take over an existing AT&T rental program and proceeded to increase sales volume more than 300% compared with AT&T's own effort in the past.
With the success Cancall was having in Las Vegas working hand in hand with AT&T to help build the rental market, a new term was added to the Cancall vocabulary, VALUE ADDED. If Cancall was a value added service to AT&T, why not other carriers as well?
One of the many features Cancalls rental equipment has to offer the public is the ability to dial direct anywhere in the world and get an accurate phone bill. This is very important to international travelers and it's a service no other rental company could offer. Cancall chose to capitalize on these features and in July opened its second Corporate location in Hawaii, marketing not only to the business traveler but people on holiday as well. Cancall developed an exceptional working relationship with Honolulu Cellular (Bell South) management, who quickly saw the advantage of developing a VALUE ADDED relationship. Nearly six million Japanese tourists come to Hawaii every year. This was an un-tapped rental market in the past. Japanese travelers have a need for instant communication the same as everyone else, but they are extremely limited since their own cell phones won't work anywhere but Japan. Cancall aggressively pursued this market and has agreements in place with the leading travel services bringing visitors to North America. Cancall tries to be involved in community events as well and was awarded the rights to provide the communications for the State of Hawaii Presidential primary and election.
Cancall now was focused on two distinct markets, the business traveler who needs instant communication, itemized bills and competitive air-time rates while on the road and the international traveler who needs instant communication, reasonable air-time rates and the peace of mind and security a personal communication device can give them, in being able to dial direct anywhere in the world and speak their own language to a Cancall representative.
With these marketing strategies in place, Cancall was able to identify the perfect primary markets for expansion in 1996. These markets needed to attract the business traveler in the form of conventions, trade shows, etc. And the market needed to be attractive to world travelers as well, with a current emphasis on the Japanese travel groups already familiar with Cancall Cellular and its services.
In the fall of 1996, Cancall opened its third corporate location in San Francisco. Cancall learned quickly from its successes in Las Vegas and Hawaii and developed the San Francisco market accordingly.
As Cancall locations grew and people living in the local community became aware of Cancall and its services offered, it became apparent that there was a new market waiting to be addressed. The LONG-TERM RENTAL. Nearly one out of three people who want cellular service are turned away by the mainstream carrier, that's nearly THREE MILLION PEOPLE A YEAR THEY SAY NO TO. Using state of the art debit technology similar to our rental equipment, we are now offering these "credit challenged" individuals the service they already want but can't get on a PRE-PAID basis.
Cancall identified the best place to offer these pre-paid services to the general public would be at the same location where they were told no by the carrier. Carriers use a series of agents and sub-agents to sign up new cellular customers for their service. You see them all the time. An agent or a sub-agent could be a cellular store, an electronics store, a grocery store or a paging company. This is the network the carrier uses to sell air-time to the public. This is also the network Cancall will use to sell pre-paid airtime.
Cancall has developed a STRATEGIC ALLIANCE with Quintex cellular, a division of AUDIOVOX, to offer the Cancall debit phone through their agent and sub-agent program (1,400) in the Northeast, as well as providing a Corporate rental location for Cancall at their Pentagon location.
Cancall became an Airtouch re-seller of air-time in their Los Angeles and San Diego markets, giving Cancall the most competitive air-time rates throughout California, which allowed Cancall to supply cellular air-time to NOVACOM, INC, a company specializing in the pre-paid marketplace in southern California. NOVACOM,INC is also offering cellular rentals at their Anaheim location, just two minutes away from DISNEYLAND in a joint venture with Cancall.
So now it's almost a year later since we first aligned ourselves with AT&T as a VALUE ADDED customer of the carrier and LOOK WHAT WE HAVE ACCOMPLISHED IN JUST ONE YEAR:
a) INCREASED OUR REVENUE 1000%
b) GONE FROM ONE LOCATION IN LAS VEGAS TO LOCATIONS IN: HAWAII, SAN FRANCISCO, LOS ANGELES, WASHINGTON,DC, SEATTLE AND NOW TOKYO
c) HAVE AIR-TIME AGREEMENTS THROUGHOUT NORTH AMERICA WITH AT&T, BELL SOUTH, BELL NYNEX, AIRTOUCH, GTE AND SPRINT.
d) HAVE NATIONAL MARKETING AGREEMENTS PROVIDING CELLULAR AIR-TIME WITH AUDIOVOX, NOVACOM, TELEMAC CELLULAR, PANA-PACIFIC, SIMS COMMUNICATIONS AND OTHERS TBA.
e) HAVE WORKING RELATIONSHIPS WITH SOME OF THE LARGEST INTERNATIONAL TOUR OPERATORS IN THE WORLD.
f) RAISED $1.7 MILLION DOLLARS (US) TO SUCCESSFULLY BUILD OUT CURRENT EXPANSION PLANS
g) EVOLVED FROM A PURE RENTAL COMPANY TO AN ALTERNATIVE CELLULAR PROVIDER WITH MUCH THE SAME PRODUCT LINE AS THE MAINSTREAM CARRIER, WITH NO TERRITORY OR TARIFF RESTRICTIONS
h) CURRENTLY TAKING NECESSARY STEPS TOWARDS MOVING OFF THE VSE TO A MORE SENIOR EXCHANGE MOVED ACCOUNTING AND ADMINISTRATIVE OFFICES TO SEATTLE.
All of this in just one year. Easy to see why I am proud of everything we have accomplished. Was it easy? Certainly not. Did we make any mistakes along the way? We sure did. Did we learn from these mistakes and are we a better company now. Absolutely. Can we do a better job in the future? You can count on it.
Cancall Cellular, with the opening of its location in Tokyo, in just one year, has proven it can provide VALUE ADDED service anywhe |
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