INFOTOPIA INC - Plans for Product Expansion, Acquisitions, Additional Board - Positions, and Shareholder Vote
New York, New York, Oct. 16, 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: October 16, 2000 My Fellow Shareholders,
During the coming months, Infotopia, Inc. is planning to implement an extensive expansion of our marketing campaigns, utilizing new product introductions and acquisitions to solidify our foothold in the Direct Response Industry. While the Backstroke Back Massager and Torso Tiger have been dramatically successful campaigns, they are merely the "appetizers" in our planned fitness category strategy. We are in production and planning to introduce a number of additional products to complement our existing lines.
We have continued to work diligently with the people that brought us the Torso Tiger, and are finalizing the details of the acquisition of several new products from them. These new product acquisitions have the potential to dramatically exceed the current sales figures of the Torso Tiger. Three of these products will be ready to launch in January of 2001 and will continue to provide revenue and profit for years to come.
We have already began the retail-level launch of our non-fitness product lines, and have received a commitment for an order in excess of one million pieces from a major retail chain for one of our newest products. This product is destined to be a holiday hit and provide exceptional margins of profitability to our shareholders. A detailed announcement on this product will be made shortly. We are working with our manufacturers and hope to deliver the first one million units in November of this year. This product will feature the debut of our first spot campaign. (One and two minute infomercials)
The next ninety days will see the debut of five new products and infomercials. In order to provide our shareholders with weekly updates on the progress of our new products, we plan to discontinue our weekly announcement of Torso Tiger Sales and Orders. The Company will continue to announce the revenue and profits on a monthly basis. The Company will announce any new significant orders as they occur. Our shareholders should note, that the actual sales revenues are realized for financial accounting purposes on a one-month delayed basis. (An example of this is August sales and orders will be recognized as revenue in September, Septembers in October, etc.) Infotopia, Inc. began the Torso Tiger campaign on August 18th, 2000 and therefore the first recognition of revenue and profits in the financial statements will be reflected in the 10Q for the quarter ending, November 30, 2000. This is due to shipping procedures, our warranty provisions, and SEC regulations regarding the recognition of revenue. The Company offers our customers a thirty-day free trial, which is a common procedure within the industry. The sales numbers we have been reporting in our press releases are the actual orders for that particular period. These revenues and profits will not be recognized in the financial statements, until thirty days from when the order is taken. This procedure is necessary to comply with proper accounting methods. The Company has taken this accounting method into consideration when it announces future projections.
A characteristic of the Direct Response Industry as a whole is that this month is commonly referred to as "Red October." Generally, television slots are more costly, as advertisers raise their rates in anticipation of a larger audience with the end of the summer period. However, ratings traditionally remain lower until late October so profit margins can decrease. Torso Tiger sales may reflect this, however, we feel we are well on the way to finishing a solid quarter and plan on meeting all of our sales goals for this quarter and will clearly show a real profit from operations for the quarter. We are anticipating a strong November and December, with the launch of our new products and stable Torso Tiger sales allowing us to capitalize on what will amount to a very prosperous Christmas season and beyond.
Infotopia, Inc. is also looking to fill two positions on its Board of Directors. Mr. James Kosta and Mr. C. Anthony Feracone both resigned from the Board in the past weeks. Anthony and James joined the Board of Directors in June of this year and were only expected to be interim appointments during our financing and capitalization stage. They both contributed to the success of Infotopia, Inc. and we our thankful for their contributions. Their resignations will allow Infotopia, Inc. to seek the most qualified and experienced people that are available to us. These new members must have industry experience and a successful track record with a Nasdaq or NYSE level company. We will be filling these two vacant seats with highly qualified people, as this will aid us in our present dealings and help us in our quest to move to Nasdaq Small Cap or National Market, The New York Stock Exchange or the American Stock Exchange in 2001.
As we continue to expand our search for a Madison Avenue type PR firm, we have found the need to have the questions and concerns of all of our shareholders accurately addressed in the interim. We have retained Mr. Robert (Bob) Tilton, with OTC Relations in New Jersey, to assist our shareholders and help Infotopia, Inc. in keeping its aggressive public relations campaign. Mr. Tilton understands the shareholders perspective and will be responding to the many emails and investor telephone calls we receive. We have met with Mr. Tilton extensively, and are impressed with his knowledge of Infotopia, Inc. since its inception. He has expressed his opinions to the Company President, Mr. Zavoral and myself, and we are extremely confident in his ability to help us during the coming weeks. Please feel free to contact Bob at IFTP@otcrelations.com for any of your email questions, or contact him at 609-888-4111, during market hours.
As we stated in the shareholder letter dated Sept 28th, Infotopia plans to increase the authorized shares to 200 million. As of today, 99, 940,492 common stock shares of the corporation have been issued. Currently on deposit with the Depository Trust Company there are 44,502, 898 shares. These shares are the only shares available for trading at the present time. The Company has now received majority consent of the shareholders to increase the number of authorized shares and will be sending proxy votes to the remaining shareholders in the coming weeks. This increase will enable us to more fully implement our business plan. Increasing the authorized shares does not mean there is immediate dilution occurring, but it gives the Company the flexibility to secure future acquisitions and funding arrangements should they arise. This increase in authorized shares is critical for us to continue to fund our explosive growth and pursue future acquisitions. As you know, we are a relatively young Company that has continued to grow beyond our expectations. It should again be stated, that our forecasted earning per share for the coming quarters accounts for the potential increase in issued shares.
We hope that you are as excited about the future of Infotopia as we are, and will continue to support us through this exciting time. The Company is filing for a five day extension for the filing of its 10Q, as allowed by the SEC, and the Company will clearly have the 10Q completed prior to the expiration of the extension and is in no danger of losing its reporting status. The coming weeks will be filled with news and I plan on keeping you informed through a series of shareholder letters. We thank each and every one of you for your continued support and faith in Infotopia, Inc.
Sincerely, Daniel Hoyng Chairman & CEO 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 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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