Just received this from ROTI.... comments?
Dear Shareholder:
The Company, after an extensive period of product development, has embarked on an aggressive expansion plan. In the past 6 months, we have increased the number of stores operating by 250%, growing from just 4 stores to 14.
When the Company raises funds by selling additional equity, the holders of our 2.3 million IPO warrants that don't expire for another 3 1/2years are not protected from dilution. Therefore, we felt we wished to reward these warrant holders for their loyal support and give them, for a limited period of time, the opportunity to exercise their warrants at a substantial discount. Thus, we have filed an amendment with the Securities and Exchange Commission to change the strike price of the IPO warrants (NASDAQ: ROTIW) from $4.00 per share to $2.00 per share for a period of 60 days.
Larry Harris, our President and Chief Operating Officer, recently announced a new program to install Harvest Express restaurants in gas/grocery convenience stores. This program kicks off this month with the opening of its first unit here in South Texas. Harvest Express is another exciting development for the Company and we feel that this innovation allows the Company a great deal of location flexibility within its various markets.
Your management team is very aware of the disappointing performance of our Common Stock this fall. To this end, we have several developments underway to improve the company's investor communications:
I . The Company has developed a new investor relations program, part of which is to encourage our shareholders to communicate with us through fax, e-mail or by telephone. Let us hear from you!
2. The Company has recently retained Lee S. Isgur as a consultant to assist them in establishing investment banking relationships and an active investor communication program that will compliment the Company's exciting growth plans. Mr. Isgur spent over thirty years on Wall Street as an analyst, where he was frequently voted #1 leisure time analyst by Institutional Investors Magazine and as an investment banker where he was instrumental in a number of high profile, successful offerings at various firms, including Paine Webber, Volpe, Brown & Whelen, and Jeffries & Co.
The Company has 14 restaurants in its target markets primarily operated by area developers. These markets are San Antonio (mostly Company stores), Tampa Bay, Indianapolis, Charlotte and Santa Rosa, California.
We wish you a happy holiday and a prosperous New Year.
William J. Gallagher
Chairman |
