Re: 2/16/01 - [IFTP] Chairman's Message
February 16, 2001
Dear Shareholders,
This has been a very busy week for our management team. The success of the Body by Jake, Bun & Thigh Rocker is staggering. As stated in our press release, customer satisfaction is very high and the returns have been running less than 1%. As we had budgeted a 15% return rate, the lower return rate is providing greater profitability than expected. It is easy to get caught up in Bun & Thigh Rocker mania, but the truth is that the Company is so much more than just this one product.
This coming week we will see the launch of the Total Tiger and Medicus Dual 2000. I previously indicated the web sites for these products would be completed today, but the web sites will definitely be up next week. The web designer needed more time to allow Davis Love’s agent to review the Medicus Dual 2000 site for final approval and to add additional graphics to the Total Tiger site. Customers will soon be able to order these products direct from www.infotopia.tv. We will soon be offering special discounts to our shareholders to purchase our products.
The Company is going forward with litigation against “bashers” on the various messages boards. We had hoped to file our first set of motions and charges this week, but our attorneys have been busy reviewing the many case files that already have been filed to determine the most successful strategy. The integrity of our Company is critical to our success. Much of what “bashers” say is protected under the first amendment; however, we feel that certain bashers have crossed the line between opinion and misinformation. It is also are belief that exposing the basher’s real names will help hold them accountable. The Company is using its in house general counsel who is on staff and is not incurring outside legal fees. As a result of the pending litigation against “bashers”, I will no longer be posting on Raging Bull, where I have posted from time to time as IFTPONE. I have our Webmaster looking into establishing a message board on our website where our Directors and Officers could interact with shareholders.
After careful review of the two private acquisitions the Company has decided to not go forward with the acquisitions. Though both Companies could have provided significant revenue, the purchase price and dilution that would have been required for the profit that would have been made were neither feasible nor prudent. The Company made a very significant offer and presented a term sheet on the one company, but the selling price reached a point where it would have had zero effect on the Earnings Per Share. Our due diligence on the other Company showed a Company with a lot of revenue, but significant operational issues and less profitability then had been presented. The cost of purchasing these two Companies could buy the Company twenty projects like the Body by Jake, Bun & Thigh Rocker. The Board of Directors determined at this time to explore adding additional projects like Bun & Thigh Rocker and use the strategic relationships we have developed, which are working so well to provide the support systems that are necessary. It has been and will continue to be the belief of the Directors and Officers that further dilution of the stock for new products or Companies must increase the Earning Per Share or new projects will not be acquired.
As for other potential mergers or share exchanges that are being discussed, the process continues and we anticipate making final decisions before the end of February. The current success of Infotopia, Inc. has given the Company significant leverage in the negotiations with these potential partners. It is still the objective of Infotopia, Inc. to find a way to move to a major national market, however, it cannot be at the expense of our shareholders. It is our belief that our shareholders must be able to gain significant financial value or the deals are not worth making. With the current success of the Company with its continuing performance, the Company should achieve the needed share value on its own to qualify for a major national exchange.
I will be on vacation this coming week, but monitoring our progress with daily updates from the management, attorneys and accounting firms. I appreciate your patience as shareholders and ask that you always remember, Infotopia, Inc. is less than one year old as a stand alone Company, and the revenue and profit growth is setting standards achieved by only a handful of other Bulletin Board Companies. The Officers and Directors clearly understand that they benefit only when the shareholders benefit and though not perfect they will always do their best to serve “all shareholders”.
Sincerely,
Daniel Hoyng
Chairman & CEO
--------------------------------------------------------------------------------
This information 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.
©Copyright 2000 Infotopia, Inc. All Rights Reserved.
infotopia.tv |
