Greater China Corporation
Corporate Headquarters
One Rockefeller Plaza, Suite 1010
New York, New York 10020
Tel: (212) 765-4547 Fax: (212) 218-4223
JWA@greaterchinacorp.com -- www.greaterchinacorp.com
GREATER CHINA CORPORATION
May 30, 2008
Dear Fellow-Shareholders,
We are writing to you rather than making individual calls because we believe you would appreciate a note from your Board of Directors on the subjects being raised.
We all share the frustrations and anxieties that accompany any delay in the renewed listing of our stock and just like you can’t wait for trading to commence again - to check the stock quote every day, to feel the excitement, and to reap the benefits of having an actively trading security. This will also unleash our ability to tap much larger pools of financing for development of our operations. If we had more money to devote to this process these activities could be accelerated; however we have to balance this with our desire to keep dilution to a minimum.
We are in this for the long term and believe we are on precisely the right course, and are confident the end result will justify any temporary delays. We hope you share this belief.
The purpose of our writing is to clarify what is happening within Greater China and to dispel any misunderstandings or apprehensions which seem to hang over our efforts. Since our work has been diligent, honest, and productive, we believe the facts should be shared openly with you.
During 2007 GCC raised and used approximately $296,000 in cash financing through the 10-10 Convertible Notes in which many of you participated. Of this amount, approximately 50% was devoted to operating activities, i.e. selecting the best projects and providing seed funding for those with the greatest potential. Five projects received some financial support over the course of the year. These projects are financially quite valuable today, and would be viewed as such by any securities analyst.
Another 30% has been used for professional expenses (SEC, legal, accounting, administration), and kept to a minimum by barter and negotiation.
The final 20% was used for direct corporate overhead such as rent, utilities and supplies and also kept to a minimum.
What there has not been is any material expense for the extremely valuable input from our growing list of Advisors (see: www.greaterchinacorp.com). Also, the two full-time executives who devote 100% of their business time and efforts to GCC have been compensated with very limited cash, minor expense reimbursement, some restricted stock, and no benefits. This is far below equivalent salary and bonus levels in today’s world. All of this is disclosed in the pending SEC Form 10 which will be available on the website and in SEC filings.
What this means is that all of us —directors, management, advisors and shareholders—have the common goal of protecting and enhancing the value of Greater China stock and having a vibrant public market for share trading.
What management has been doing in recent months is to balance the daily needs of identifying and processing good corporate opportunities (with eager entrepreneurs) with the daily needs of keeping the overall business moving forward. There have been no critical “snags”, “delays”, or “problems” other than those encountered in any developing business with limited working capital and limited hours in the day. Financial resources have been used primarily to complete compliance and regulatory documents and for professionals (accountants, auditors, SEC counsel, Bermuda counsel) prior to recommencement of listing and trading in the stock. These expenses are also being kept to a minimum. There are inevitable delays by regulatory authorities over which we do not have control.
On the matter of the GCCL - GCC share-for-share exchange, there has been a unanimous positive response. Under Delaware law we need a majority of shareholders to approve and have received 65% acceptance which is well more than enough. Given that 35% of the total outstanding shares are in small lots and/or in street name where we can't effectively communicate with the holders, the acceptances in hand are the equivalent to a 100% approval rate and a powerful endorsement for moving ahead as planned.
The majority of our Directors recently met with shareholders in the Washington, D.C. area and found it very stimulating and constructive. We plan to continue these meetings and exchanges in the future along with regularly scheduled quarterly SEC filings, web postings and Press Releases in compliance with normal public company procedures. In the meantime, if you have any comments or suggestions we welcome these from all our shareholders.
Thank you for your continued support and understanding. We look forward to achieving our common objective of realizing the full potential of Greater China Corporation, Ltd.
Board of Directors:
/s/ John W. Allen /s/ Laurence B. Levine
/s/ William Knight /s/ Mark Young |
