rom: +Alan Markoff
Aug 10 1997 2:43AM EST
Reply #1913 of 2624
EUTRO'S NEWSLETTER PAGE (1)
EUTRO SETS THE PACE FOR PREFERRED OFFER
Note; OFFER EXTENSION
In consideration to the
vacationing season, we have
decided to extend the expiration
date for the Exchange Offer to
August 30, 1997
Eutro's Preferred Exchange Offer has been met with very positive
response thus far. The stock price is rising and will continue as
shareholders request their certificates. This offer is the first step
in the journey to success for Eutro. As you read this newsletter,
you will see that the new program Eutro has instituted will
generate tremendous revenues and allow the long awaited
cholesterol pill to become a reality. When the 0ffer is completed,
along with a strong and steady rise in the stock price, the long
term position with Eutro stock looks extremely good.
Questions concerning the offer have been coming in furiously.
Two of the most frequently asked are: 1) What is the expected
response to the Offer by the Company; and 2) What do I do to
participate (i.e. how, what forms to be filled out)?
To address the first question, the Company needs full
participation by all shareholders to reach its goals for the Future.
After the due date, based on their existing conditions, management
will determine its course of
action always based on the best interest of its shareholders. The
second question will be answered in the following way: 1) The
first thing to do to accept the Offer is write the total number of
shares on the Acceptance Offer sheet, print your name and sign
and date it. Then mail it to Eutro. At this time, call your broker
and inform
hem that you are participating in the offer and they will forward
your certificate to us. We then send our Preferred and Warrant
Certificate to our Broker and your account will be credited. 2) If
you already requested your certificate or hold your certificate you
should: fill out the irrevocable stock power, number
of shares, certificate numbers, and go to your bank and have your
signature guaranteed. At this point, send the actual stock
certificate by itself in an envelope to Eutro. In a separate
envelope send the stock power. 3) When Eutro receives the
certificate, we will issue and send to you a certificate for your
Preferred shares, and a certificate for your Warrants and a
certificate for your remaining 20% of Common Stock.
With your participation, Eutro will grow and so will your
position.
EUTRO'S NEWSLETTER PAGE (2)
THE STATE OF THE COMPANY
As a stockholder, creditor and executive of Eutro Group Holding,
Inc., I must say to you that frustration with the slow pace of
change brought about certain changes in the Company's operation
as of January 15, 1997. Eutro has returned to the method of
operation for which it was originally created. In getting there,
Eutro has undergone a restructuring in its management and a
significant change in corporate direction.
The changes in personnel have resulted in a cost reduction of over
$160,000 per year. The return of Dan Birbilis avails us of his
many years experience in the securities business. When combined
with other people in our company, Eutro now has over seventy
years experience in securities, investment banking and
management consulting.
Since October 1, 1995, the change in direction of Bio-Analytic
Laboratories, Inc. has been painful and costly. It has however,
resulted in an upgraded product line with all its components being
FDA approved. Bio is now ready to become an effective
company which, if it can be joined with other companies in the
medical field, can become a very significant asset for Eutro.
Eutro was originally conceived as a holding company. Because of
this, its management has decided to return to its roots of being a
business development company with its primary assets being the
equity positions in the companies it has as clients.
After six years of analysis of the medical field in general and
diagnostics in particular, we have learned that a lone diagnostics
manufacturing company will have great difficulty achieving the
size and profit required to make it a meaningful contributor to its
parent company per share earnings. In past communications, we
have told you that many diagnostic companies are surviving on
stagnant sales and limited profit. It is our belief that combining
several of these companies could create a viable company in the
medical industry with acceptable profits and a bright future. We
have therefore decided that it is in the best interest of all the
parties concerned to combine Bio with several other diagnostics
companies and medical supplies distributors into one corporate
entity, and then offer that entity to the public.
We are still continuing research on the cholesterol product, the
home self-testing kit for cholesterol and the product which helps
to prevent certain types of cancer. As soon as we complete our
program with Bio, we will introduce these products to the market
through our wholly owned subsidiary, Special Products, Inc. We
fully believe that these three products will prove to be
blockbuster contributors to Eutro's income.
Fellow stockholders. It has been a long and tough period but we
are now ready to start reaping the rewards and the most important
of these is an improved stock price. I am myself a major
shareholder in Eutro, and will admit to you that I have continued
to add to my holdings. I cannot advise you to follow my example.
I want to express my thanks to all of you for your continued
support.
Floyd D. Wilkenson
Chairman of the Board
UTRO'S NEWSLETTER PAGE (3)
I'M MAD AND I'M NOT GONNA TAKE IT ANYMORE!
People are fed up with the high costs of health care and the side
effects of prescription drugs. So America is wondering instead of
treating symptoms, why not assist your body in fighting off
problems with nutritional supplements.
Forty-five percent of the U.S. population is using vitamins and
mineral supplements. The industry has grown 200% in the past
fifteen years. Baby boomers, 35 to 54 year olds, lead the way
consuming more vitamins than any other group.
Thousands of doctors throughout America are promoting
preventive medicine through exercise, proper eating habits and
nutritional supplements. New research has shown vitamins can do
more than prevent antiquated deficiency diseases such as scurvy,
beri beri or rickets.
Most recent data indicate vitamins can help against heart
diseases, Alzheimer and may even boost immunity. An editorial
published in the Journal of the American Medical Association
concludes, "The era of nutrient supplements to promote health and
reduce illness is here to stay".
With this in mind, Eutro is planning to put more emphasis in this
industry through its Special Products, Inc. subsidiary.
This field with its phenomenal growth appeals to Eutro's future,
providing an avenue other than the diagnostic area. Let's face it,
diagnostics is after the fact!! Forty-five percent of the population
in America have decided to do something about their health long
before diagnosis.
Eutro feels nutritional supplements are not a fad. They are the
future of a health conscious America, therefore, a great
opportunity for the future of Eutro.
Currently, in the works through Special Products, is a cholesterol
reducing herbal nutritional supplement that will be marketed with
a home self test kit. This will further enforce the new attitude of
America that says, "I can do it myself".
Down the road, Special Products is looking at two other
specialized products that will have profound effect on the industry
and consumers.
With the onset of Eutro's new direction additional capital will be
raised to implement this project and create a cash flow through
Special Products. In addition, our shareholders participation in
the preferred stock exchange will strengthen Eutro's appearance to
gain new clients.
EUTRO'S NEWSLETTER PAGE (4)
NEW DIRECTION
We have good news and we have even better news. The good
news is that the precipitous slide in Eutro's stock price has
stopped and a recovery has begun. The even better news is that
Eutro is well on its way to implementing the change of direction
which we have mentioned to you in past communications.
It is worth repeating to state that Eutro was originally conceived
as a holding company which would have as its primary activity
the maximization of the value of its security portfolio. Its modus
operandi was to have been proactive investment banking, meaning
that it would actively seek to implement its investment concepts
rather than simply wait for potential clients to approach it.
While there may be a mega difference in size, the basic concept is
similar to that of Berkshire Hathaway.
Simply stated, Eutro will be compensated in three possible ways
for the services it renders to its clients. First is a cash payment to
cover actual expenses and leave a profit. Second is a block of the
clients common shares, a portion of which will be given to each
of the Eutro stockholders. Third is the possibility of an ongoing
relationship with the client as financial consultant/advisor.
The above described changes and operations will benefit the
Eutro stockholder the following ways. The cash portion of the
fees charged to its clients will leave sufficient money to enable
Eutro to expand its operation and thus attract larger clients. Next,
the appreciation in the common stock portion of the fees it
receives will increase the book value of the Eutro common stock,
and lastly the same appreciation will increase the value of our
clients shares which have been passed on to you as a Eutro
shareholder.
This is the true meaning of synergy. Eutro and its shareholders
will build investment portfolios composed of the companies
which Eutro has as clients. The shares which the Eutro
shareholders receive will be at no cost to them. They will receive
them as compensation for the work their company has performed.
Some of these companies may not amount to very much, but it is
always possible that in this portfolio could be another Cisco or
Dell or Araldica Winer.
Eutro will be the stepping stone by which the client companies
become financially sound and important in their industry. We are
glad to be able to say that at this time we have three serious client
prospects and we feel confident that we can join this area of
endeavor at an entry level plateau of six successful deals per
year.
Management intends to remain in continuous contact with its
shareholders so that you will know what we are doing. As we
have said to you before, good things are about to happen and you
will be hearing from us soon about them.
Eutro Group Holding, Inc.
1070 F. Indiantown Road, #208
Jupiter, FL 33477
To all: This document was scanned from "THE WAY IT IS", the
Eutro Holding, Inc. June newsletter to shareholders. All attempts
have been made to be as accurate as possible. If there are any
mistakes they are accidental and I submit my apologies now.
John Algermissen |
