Cargo Connection Logistics Holding, Inc. CEO Issues Shareholder Message
12/29/2005 2:56:02 PM
INWOOD, N.Y., Dec 29, 2005 (BUSINESS WIRE) -- Cargo Connection Logistics Holding, Inc. (CRGO) today issued the following message to shareholders:
To The Shareholders of Cargo Connection Logistics Holdings, Inc.:
Many of you have inquired as to why there has been little news over the past few months. Frankly, it is because we have not been able to solidify any of the business opportunities we have talked about in our earlier press releases. However, that doesn't mean we have not been working diligently to move forward with these transactions, as well as several other transactions which we hope to be able to announce in the near future.
We will provide a comprehensive year-end review once we close out the fiscal year. By that time we believe that we will be able to announce publicly much of what has been worked on during this quarter.
Unfortunately, during the past few months we have all watched the value of the stock deteriorate for no apparent reason. Regrettably, some shareholders have interpreted the lack of news with a lack of activity on our part, which could not be further from the truth. While I cannot comment on the performance of our stock and why it has taken such a precipitous drop in price, I can state that we believe that it is trading well below a realistic market value. Clearly, as one of the Company's major shareholders the price of the stock affects me as much as anyone!
There has also been a great deal of speculation regarding the increase in the company's authorized shares. This message is being sent out primarily to address this issue. Like any growth company, in order to accomplish our business plans we need to raise funds for our operations. Therefore, we have just finalized a funding transaction which will consolidate our previous funding and provide us with some short-term funds for working capital requirements. The covenants in the funding agreements require that we provide as security a multiple of shares based upon the amount of funds raised.
It was for this reason and this reason alone that we are increasing our authorized shares. Our issued and outstanding shares have remained basically consistent since our last 10-QSB. Again, the increase in authorized shares was a requirement to meet certain funding requirements and the funding was essential for the financial well being of the Company. I want to emphasize that none of the officers or directors have taken additional shares during the past few months.
I remain cautiously optimistic about 2006 with regard to the growth of the Company. Many of our customers did not have the holiday season they were hoping for and that, in fact, will affect our fourth quarter results. However, we do believe that we have done an excellent job of replacing much of that cyclical business. These efforts will not only expand our customer base, but will make the Company much less dependant on any one customer or industry.
As we move into 2006 I ask for your patience as well as your continued support. We are continuing to work toward our goals and as you will see, we believe that much of what we have been and are currently working on will come to fruition in the 2nd quarter of 2006.
Let me take this opportunity to wish all of you a happy, healthy and prosperous New Year! The Board of Directors of Cargo Connection Logistics Holding, Inc. would once again like to thank you for your continued support and vision into our future.
Jesse Dobrinsky
President & CEO
About Cargo Connection Logistics Corp./Mid-Coast Management, Inc.
Cargo Connection Logistics Corp. is a leader in world trade logistics. Headquartered adjacent to JFK International Airport, the company is a transportation logistics provider for shipments importing into and exporting out of the United States, especially through the Gateways of Chicago, Illinois; JFK, New York; Miami, Florida or Atlanta, Georgia, with service areas throughout the Unites States and North America. Mid-Coast Management, Inc. is a container freight station specifically designed to handle internationally arriving freight for the major retail suppliers. Since its inception, Mid-Coast Management, Inc. has developed relationships with many retailers and also works with Freight Forwarders from around the world.
Additional information about Cargo Connection can be obtained at its website cargocon.com
SOURCE: Cargo Connection Logistics Holding, Inc.
For Cargo Connection Logistics Holding, Inc., Inwood
Peter Nasca, 305-937-1711
pnasca@pnapr.com
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