from RB on EDGH
ragingbull.lycos.com
Mr. Tae Ho Kim, Chief Executive Officer
Mr. Sang Ho Kim, Chairman & President
Edgetech Services Inc.
18 Wynford Dr.
Toronto,Ontario,V1P 1A3
Canada
July 30, 2003
Dear Tae & Sang,
It is with great pleasure that our partnership, Hollingsworth,
Rothwell & Roxford ("HRR"), hereby offers to acquire 90% of the
shares of Edgetech Services Inc (EDGH.OB) for US $1 a share -- where
it traded at earlier this year. Edgetech shares closed yesterday at US 15
cents a share.
Our offer is conditional on: (1) your allowing us to sign a
confidentiality agreement with you, in order to be able to do all of
our due diligence on your fine Company; (2) you and the entire current
management of Edgetech continuing to run the Company as always, and (3)
yourpublicly releasing this Letter Offer from HRR in its entirety in both
Canada and the U.S. on a national scale in both countries.
Based on the publicly available reports issued by Edgetech, which we
have evaluated in depth, as well as our very strong belief that your
Company is extremely well managed, with unique businesses and
services in IT Security, Biometrics, Business Solutions, Systems
Engineering, Software Development and Project Management, and 7 years
of continued rising revenues, it is our opinion that the shares of
Edgetech Services, are severely undervalued. We wish to acquire only
90% of the Company, in order to keep the shares trading in the
markets, to be able to use the stock as a vehicle to make future
acquisitions of other undervalued companies, as well as to be able to
benefit from your continued success and growth with your business
partners, Microsoft, IBM, Symantec, Counterpane, and many others; and
your clients, which include major government and private sector
clients in Canada and the U.S., such as IBM, Falconbridge, Bell
Nexxia, Rogers Telecom, and the Province of Ontario.
Having recently achieved success at enhancing value for Zapata Corporation
shareholders, which HRR discovered in early November 2002 at only $22
a share, and made a public offer for it on March 5, 2003 at $45, and then
raised our offer on June 13, 2003 to $51, -- Zapata shares have since
soared to over $58 a share. It is our intention to achieve the same
success for Edgetech Services shareholders as we did for Zapata
Corporation shareholders, all of which has been publicly documented.
In addition to the success we achieved for Zapata shareholders, it
has also been well documented publicly on March 18, 2003, that HRR
filed a shareholder proposal with the SEC on Edgar on March 14, 2003,
to enhance shareholder value for Sony Corporation in the form of spin
offs of assets, that add up to over $101 a share in value for Sony
shareholders, and that had Sony's Board Of Directors taken our advice and
put its shareholders first before its officers and directors, Sony shares would
never have dropped so drastically at the end of April 2003 all the
way down to $23 a share.
HRR is currently seeking additional affluent partners on a limited
basis, in order to make further acquisitions of extremely undervalued
companiesworldwide in the near future, like Edgetech Services. If anyone is
serious and interested, contact: Hollingsworth, Rothwell & Roxford
at: kth@hrrma.biz.
We look forward to acquiring Edgetech Services at US $1 a share, and in
working with the fine management of Edgetech Services to continue seeing its
future success.
We eagerly await Edgetech Service's response to our Letter Offer set
forth herein.
Very sincerely,
/s/ Kenneth T. Rothwell
Kenneth T. Rothwell
Senior Partner
Hollingsworth, Rothwell & Roxford
e-mail: kth@hrrma.biz |
