9/29/00 - 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.
TEL: 508-884-9900 Marek Lozowicki, Infotopia, Inc. |
