COMTEX) B: INFOTOPIA INC - Chairman and CEO Addresses Shareholders Q
B: INFOTOPIA INC - Chairman and CEO Addresses Shareholders Questions
New York, New York, Sep. 29, 2000 (Market News Publishing via COMTEX) --
Infotopia Inc. announced that its Chairman and CEO Mr. Daniel Hoyng is sending a
letter to Shareholders of record of Infotopia, Inc.
The following is a copy of the Shareholders Letter: September 28, 2000 Dear
Shareholder,
It has been only five months since Infotopia, Inc. began life as an independent
fully reporting trading entity. The Company continues to set new milestones each
and everyday. Infotopia, Inc. is one of the highest volume traded stocks on the
OTCBB. Thanks to you our Shareholders, in the past three months we have traded
318,591,000 shares, averaging 4,901,400 shares traded on a daily basis. This
consistent high volume has created tremendous interest in our company by
Shareholders, brokerage firms, market makers, potential Shareholders, financing
companies, inventors and companies who have products that they would like to
partner with Infotopia, Inc. Our revenues are now exceeding $1,000,000 each and
every week and GROWING. The month of September will be our first month of
positive earnings per share in company history, these numbers should help
attract even more new Shareholders and the company is now 100% debt free and
even new short term payables are being paid daily. I challenge anyone to find
another company on the OTCBB with as much excitement, growth and REAL news. The
"chat rooms" on the Internet are filled with strong long-term supporters and
despite allegations, we have we have not paid not one employee or outside
individual or company to work the "chat rooms". However, I can not let this
opportunity go by and not thank the individual who goes by "Oyster Monkey or PC
Maniac" on Raging Bull, I do not know his name, where he lives or what he does
for a living, although I someday hope to meet him. His Due Diligence posts have
added hundreds of new Shareholders to Infotopia, Inc. and for this I am very
thankful. I have chosen to write this letter because there seems to be so many
rumors and so much news to report that I felt a comprehensive letter would help
keep our Shareholders among the most informed in the industry. Following is a
list of key topics that will address the many questions regarding Infotopia,
Inc.
Torso Tiger: The sales of Torso Tiger remain very strong and the future will
continue to provide strong sales and profits. The launch of Torso Tiger II has
created a retail product for consumers who are looking to spend less money on a
fitness product. The company is continuing to look for ways to expand its
"Tiger" brand and we soon hope to have an announcement regarding the next
"Tiger" product. We expect sales to remain strong, and our forecasting sixteen
million in sales for the balance of the year. We will soon release the profits
from September sales and our expectations are high that the "Tiger" brand will
continue to perform at current levels through 2001 and beyond.
BodyRocker: The BodyRocker is a tremendous product and every consumer who has
tested this product, immediately falls in love with the ease and impact of the
workout. The BodyRocker is a high end product and is being tested on television
in various price points, offers, and even as a lead generation advertisement.
(Where customers call in and request information) The lead generation sales take
time but can be highly successful. Direct Focus with the BowFlex and American
Telecast with the Total Gym, both products in the BodyRocker category have
successfully utilized lead generation ads to create a solid sales strategy. We
believe the BodyRocker will be highly successful, but we caution our
Shareholders to not expect big revenue or profit until the start of 2001. The
company is also working with Dean Tornabene, the inventor of the Ab Rocker and
Bunn Rocker to develop additional "rocker" projects for early 2001 launch.
Additional New Products: The Company will soon be announcing several new
products that are being readied for early 2001 launch. The new products will
expand our product lines and create an opportunity for the release of some
products that are continuity driven (products that will provide on going monthly
revenue). Our Shareholders should be cautioned that for every product that
produces revenue, like the Torso Tiger, there is many that never succeed. This
is why Infotopia, Inc. has such a bright future, our product development team is
constantly in search of new products and if one fails we will launch another in
its place.
Backstroke Back Massager: It is often forgotten the founding product of
Infotopia was the Backstroke Back Massager. This product produced over
$5,000,000.00 in limited release. The company is poised to re-release the
product on Television and launch the product into retail. In addition we have
been receiving new International Orders. We believe this product will still
produce $100,000 or more in total revenue on a weekly basis in the coming year.
We will soon be releasing more details in the near future regarding the
Backstroke Back Massager.
Corporate Debt: The Company as stated previously is 100% debt free. Much of this
debt was retired through equity placements. The company issued over twenty-five
million shares to accomplish this objective. The success of the Torso Tiger and
all the new products in development would not have been possible without the
issuance of these shares. In addition each new product in development requires
in excess of $300,000 for the cost of the infomercial production, molds and
tooling, product testing and other related miscellaneous developmental expenses,
after launch the a product like the Torso Tiger can utilize between $1,000,000
for inventory and media prior to producing sales.
Additional Capital: The Company had a Letter of Intent on a twenty million
equity line, but the Board of Directors chose not to exercise it because of the
high cost of warrants and fees attached. The company has offers from several
other leading financial institutions on equity lines. However, the Company is
renegotiating with the original "letter of intent" lender, to secure better
terms and create the least amount of dilution for our Shareholders. In addition,
the Company is working with Banks for non-equity financing as well. The Company
believes the anticipated success of several of the new projects will create an
additional demand for about five million in working capital for inventory and
media. Again, the Companies goal is to create a combination that will create the
least amount of Shareholder dilution.
American Stock Exchange: The Shareholders have made it clear through emails and
calls to the Company, that their preference is for Infotopia, Inc. to pursue
Nasdaq Small Cap or Nasdaq National Market, instead of the American Stock
Exchange. As a result, the Board of Directors has decided to delay a National
Market selection until early 2001. In the interim the Board of Directors will
carefully study all the options for a national market election. With the
Shareholders help, this delay will hopefully allow the share price to reach the
$3.00 to $5.00 level and eliminate the consideration for a reverse split, to
achieve the minimum required trading price for a national exchange.
Reverse Split: The Board of Directors for two reasons was considering a reverse
split. The first was to meet the minimum required goals for trading on the
American Stock Exchange, which we addressed above. The second was to create
additional maneuverability to complete financing or new product acquisitions.
The Company only has an authorized share base of 100,000,000 shares. Companies
with more than 500,000,000 issued and authorized shares trade less volume than
IFTP. Because of the debt retirement, new product acquisitions, consulting
agreements and private placements the company is left with little room to issue
stock for new products and funding. A reverse split could have opened up the
space for the company to continue its aggressive expansion. However, after
speaking with many of our major Shareholders, it is clear that the preference is
for the company to increase its authorized shares to 200, 000,000 and a reverse
split will not be necessary. The Company is clearly growing at a pace that will
allow it to achieve in excess of $100,000,000 in revenue and earnings per share
will continue to increase (see table below). A Shareholder vote will soon be
undertaken to increase the authorized shares by the Secretary of the
Corporation.
Earnings Per Share: Following is a chart by quarter of the projected earnings
per share by quarter and the anticipated outstanding stock at the end of the
quarter.
Quarter Projected Shares Earnings Per Share
3rd Qtr 2000 (Sept/Nov) 120,000,000 $ 0.021
4th Otr 2000 (Dec/Feb) 130,000,000 $ 0.034
1st Otr 2001 (Mar/May) 135,000,000 $ 0.042
2nd Otr 2001 (June/Aug) 140,000,000 $ 0.054
3rd Otr 2001 (Sept/Nov) 145,000,000 $ 0.067
4th Qtr 2001 (Dec/Feb) 150,000,000 $ 0.094
Total Fiscal 2001 150,000,000 $ 0.257
With the above earnings per share we feel Infotopia, Inc. can
clearly reach the minimum trading prices to reach a National Exchange in early
2001 without implementing a reverse split.
S-3 Registrations: The company will file an S-3 registration for many of the
restricted shares issued over the past several months. The registration will
allow these shares to become free trading upon its effectiveness, which should
take place in about sixty days. The majority of these shares are subject to
certain dribble out provisions, which will prevent large blocks of stock from
hitting the market at one time. In addition many of these shares will belong to
affiliates of the company and will be subject to rules regarding sales of stock
by an affiliate. The company will file an additional S-3 in the near future for
the remaining restricted stock of the company, this will be completed when
proper provisions have been taken to ensure these shares will not have an
adverse effect on the market.
Public Relations Firm: We are proud of the performance of Strategic
Communications and Matt Westfield. However, the growth of the Company had
created an increasing Shareholder base resulting in an increased volume calls
creating a need to find a larger Public Relations Firm. We hope to announce next
week a new Public Relations Firm.
The Company is committed to explosive growth and will continue to keep you our
Shareholders the most informed of any OTCBB Company. I hope you the Shareholders
will continue to make IFTP one of the most actively traded stocks on the OTCBB.
Sincerely, Daniel Hoyng CEO and Chairman ABOUT INFOTOPIA The Company's mission
is to produce, market, and distribute an expanding line of high-quality,
innovative health, fitness and consumer products. Infotopia is modeling its
business after Direct Focus (NASDAQ:DFXI). Infotopia seeks out products that
deliver superior value, outstanding quality, and competitive prices to best
satisfy customer demand. The Company markets its products to consumers through a
variety marketing channels, including infomercials, distributor alliances, and
Internet e-commerce. The management at Infotopia is committed to increasing
corporate revenues and profits. The company's website is located at
infotopia.com This news release includes "forward-looking statements"
that include risk and uncertainties. The forward-looking statements in this
release are made pursuant to the safe harbor provisions of the Private
Securities Litigation Reform Act of 1995. Actual results may differ materially
due to a variety of factors, including without limitation the Company's ability
to produce and market products and/or services and other risks detailed from
time to time in their Company's reports filed with the Securities Exchange
Commission.
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TEL: 508-884-9900 Marek Lozowicki, Infotopia, Inc.
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