Constellation 3D Issues Letter to Investors
NEW YORK, Jul 19, 2001 (BUSINESS WIRE) -- Constellation 3D, Inc. ("C3D") (Nasdaq/NMS: CDDD chart, msgs), developer of Fluorescent Multilayer Discs (FMD) and Cards (FMC), today issued the following letter to shareholders and other interested parties, in the form of this press release.
Dear Shareholders,
Recently we all have been witnessing a dramatic change in the trading pattern of C3D shares in the market. It is our strong belief that the share price fluctuations have no relation to what management believes is the tremendous value offered by the continued development of FMD technology. To the contrary, we are more excited about our potential than at any time in our history.
I wanted to take this opportunity to share with you an update on your company.
The recently announced agreement with WAMO is clearly one of the most important moments in our young Company's business history. However, there is a long road ahead. The final results of the collaboration will be realized after months of hard work by our scientists and engineers and the team from WAMO. As we emphasized in our last conference call, the development of strategic relationships with worldwide industry leaders would be a top priority of C3D. WAMO was the leader behind the development and market introduction of DVD.
We expect our relationship with WAMO will be a long and fruitful one. The first priority of the program will be to extend and enhance the FMD mass production technology development that was begun with Plasmon Plc. several months ago, and continues. It is of the utmost priority to WAMO and all potential developers of FMD based products to demonstrate conclusively that a high capacity FMD disc meets market requirements and can be manufactured inexpensively. We are anxious to prove this to the consumer market. I also want to take this opportunity to compliment our SVP for Business Development, Steve Haddad, and his growing business development team for developing the WAMO relationship. In the short period of time since he joined C3D, Steve has added tremendous value to our Company and I expect further rewards from his continued efforts will be seen in the coming months.
Our Company has also achieved significant advances, both technologically and strategically, on Recordable-Removable FMD storage (WORM). The Company is making its first significant steps in introducing this technology for consumer electronic markets. You can expect further announcements on this matter in the near future.
In face of the developments in the financial markets during the last several days, it is only appropriate to share with our shareholders the information that the management of the Company received. We have all been looking with a high degree of curiosity as to why the trading volume has increased more than tenfold, while the price of the shares in the market decreased. We have recently received information from certain shareholders informing us that a significant amount of shares held by them were liquidated due to margin calls that they experienced. We believe these sales have triggered a decrease in the price of our stock in an almost snowballing fashion. It seems that our shareholders' overall confidence in our technology has caused this process to begin to reverse itself. I wish to express our gratitude to all of our shareholders who continue to support our Company.
In addition, there have been several inaccurate comments made with regard to the Company issuing a certain number of Warrants for what was thought to be less than fair value. Nothing can be further from the truth. The fact is that the Company, in three separate instances, resolved outstanding matters at full value or possibly more than full value. In our dispute with Clearview Capital, the Company settled for a certain amount of money that was paid in stock valued at $5 per share. Further, there were restrictions on the selling of said stock. This saved the Company cash and litigation fees. The Company also restructured its prior financing of $15.8 million, removing a troubling reset provision and again bringing added value to all shareholders. Lastly, the Company settled its dispute with Sands Brothers, eliminating almost 3,000,000 shares from its public float. These settlements, which greatly enhance shareholder value, will also make our next financing much easier to accomplish.
On the technology front, our scientists are making significant progress on all aspects of FMD technology. New developments occur on almost a daily basis. Since the early stages of this Company's history, I have been amazed at the tireless efforts and dedication of our scientific and engineering teams. The term `World Class' is thrown around too often, but I can say with confidence that there is not a research facility at any university, corporation or government office that wouldn't love to have a team of people of the caliber of the C3D staff.
For business and strategic reasons, I am not able to discuss each program we have in development, but we are making continuous progress and we regularly conduct demonstrations under strict non-disclosure agreements with major corporations. Public announcements and demonstrations will be held when they meet our business objectives.
C3D has reached a critical point in its history. There are bound to be some challenging moments as we transition from an R & D company to a profitable business enterprise. However, with the new additions to our management team and the skills they bring to C3D, I am highly optimistic that this five-year-old company and its revolutionary technology, that a few visionary scientists and I developed, will soon be a household name.
Thank you for your continued support.
Warm Regards,
Dr. Eugene Levich Chairman and CEO Constellation 3D. Inc |
