More news on XCHG! CEO speaks! Telpac Issues Letter From CEO
LAS VEGAS, Feb. 11 /PRNewswire/ -- Ms. Mary Grace, Chairman, President and CEO of Telpac Industries, Inc. (OTC Bulletin Board: XCHG - news), today released the text of a letter going to the Shareholders of the Company. Ms. Grace, also holds the same titles with the Company's principal shareholder, Intermarket Ventures, Inc., a non-listed company that specializes in the acquisition, development and exploitation of technologies that are at the forefront of today's telecommunications convergence.
In this letter, Ms. Grace, addresses the flood of inquiries arising since the Company's announcement two days ago that it had signed a series of definitive agreements with Beijing Telecom affiliate, Beijing Red Sail Communications, whereby Telpac Industries will both fund and acquire 50% of a Sino-U.S. joint venture company in Beijing to be formed with Red Sail that will own a state of the art SuperPOP in Beijing.
The Beijing SuperPOP will be a primary source of ``one-stop shopping' for innovative, cutting-edge Internet technology to its customers including: (i) broadband dedicated Internet access, web hosting and co-location facilities, (ii) value-added systems and network integration, (iii) interactive development - digital web design, web implementation, network user applications and (iv) interactive corporate and other interactive multi-media distance training.
The text of the letter is as follows:
February 10, 2000
Fellow Shareholders of Telpac Industries, Inc.
Dear Friends,
On behalf of all of the Telpac Industries Executives and Staff, I wish to thank everyone for the overwhelming support and good wishes that we have been receiving since announcing our new focus, new venture and new partner. As you know, we have always concentrated our efforts on the China market and we are more than pleased with the current results. We can not think of a better project to focus our efforts on or a better partner to work with in China to facilitate this type of business.
In addition, I wish to take this opportunity to clarify certain points relating to our business, our Company, and our principal shareholder, Intermarket Ventures, that have been a common theme among the many calls we have received in the last days.
First, with respect to our new business:
(1) all parties to the joint venture are putting up their pro-rata share of cash or hard assets to capitalize the new joint venture. This is not a case where certain parties to a joint venture get a ``free-ride.'
(2) the SuperPOP is accessible nationwide via any one of three 4 digit, dial-up access codes that have already been approved and allocated to the project.
(3) a company in the U.S. that operates a similar business in the U.S. (and elsewhere) is Globix which trades on NASDAQ as GBIX. To our knowledge, this is a first of its kind project in China and from all indications there is great demand for the services it can supply.
Second, with respect to the Company:
(1) as of today's date, fully diluted, accounting for all options currently granted and assuming the conversion of all preferred shares currently outstanding, Telpac' capitalization is approximately 60 million common shares. Of the 60 million shares, Intermarket Ventures holds the equivalent of 50 million shares, employees hold options for approximately 5 million shares and the float is approximately 5 million shares.
(2) the transaction with Red Sail will not cause any dilution to current shareholders because Intermarket Ventures, as part of the acquisition price of our current subsidiary, agreed to reduce its holdings by 25 million shares, the same number of shares that Red Sail is acquiring in Telpac.
(3) the Company is now in the process of becoming a reporting company by filing a form 10SB with the SEC. The Company is not now and never has been a reporting company.
Lastly, with respect to Intermarket Ventures, Inc. (``IVI'):
(1) either directly or through subsidiaries, IVI has and plans to continue to make strategic investments, primarily in start up, development stage and developing technology companies. All investment activity is, and will continue to be, concentrated on uncovering complementary opportunities, worldwide, within the context of the convergence of the internet, computers, telephone and television.
(2) Telpac Industries is but one of a number of holdings under the IVI umbrella of companies.
(3) IVI is not now listed and not reporting however it plans to register with the SEC and become reporting later this year.
As I have often stated, China is now on the cusp of unprecedented growth in the data convergence arena. Telpac is there, in China, and will be an integral part of this growth.
We, here at Telpac, feel confident that we can create real value for you our fellow shareholders while at the same time creating a meaningful positive impact on people's productivity and lives with our cutting edge technology and ideas.
My fellow shareholders, thank you again for all of your kind words and support. We will do our best to make our Company the tops in its field!
Yours truly,
Telpac Industries, Inc.
Mary Grace
Chairman, President & CEO
Forward-looking statements in this release are made pursuant to the safe harbor provisions of the Private Securities Litigation Act of 1995. Actual results may differ materially from those projected in any forward-looking statement. Investors are cautioned that such forward looking statements involve risk and uncertainties, including, but not limited to, the availability of satisfactory and adequate financing, the additional risks of doing business in a foreign country and other factors, which may cause the actual results, performance or achievement expressed or implied by such Forward-looking statements to differ materially.
SOURCE: Telpac Industries, Inc.
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