Here is a response to an email I sent. It is not the message in whole, but I believe it contains the most important areas. Also note, it contains the shares outstanding, and float of the company. (4)
Dear Mr. Kenyon,
I tried to answer you earlier but my email failed. If the first message went out, I apologize. Here are answers to your email. My name is Dawn Legg and I am the VP of Corporate Relations at Dega. Thank you for getting our attention about your concerns. Your concerns are important to us and we encourage people to always bring their questions directly to the operations. Yes, we are a small company and at this time and we do not have a dedicated Investor Relations Department and this may cause investors confusion.
1. What steps is DEGA taking in increasing the value of DEGA stock, and consequently, investor profits? [Dawn Legg] As with any company, nothing can increase value better than contracts and revenues and this is what we are focused on - we have 5 large prospects in various stages of negotiations. These 5 consist of large buying groups, large warehouse distributors and a large specialty warehouse distributor. We hope to announce one of more of these signings in the next month, with many more prospects to come.
2. Does DEGA PR intend to release any news within the next week to help stop the recent downtrend in stock value? It is my understanding that Ed and Lenny are in charge of IR. Can you verify, or refutethis?
[Dawn Legg] We do have releases waiting in the wings, whether theygo out next week is unclear. Minneapolis Company has been with us since we began our public life and they do some promotion. We have some other's as well and are seeking to produce a consistent, and continual messages to go out to the market to reduce the confusion that your are experiencing.
3. What are DEGA's short and long term goals? (i.e. revenue increase, signing deals with other companies, etc..) [Dawn Legg] I have shared with you some of our short term goals and that is to place our product into the automotive parts distribution business by offering them a state-of-the art internet catalogue, containing the parts they distribute and the ability for their customers to purchase with E-Commerce capabilities. There are two important issues to share here: 1) The Automotive Industry is a well established entrenched marketplace. They do not change suppliers or tools quickly. They are aware of the Internet's impact on their business, but like many established industries, they cannot just "pick up and do it differently" immediately. This takes relationship building and trust that they are going with the right strategy. Dega's relationship with Grant Automotive provides this security to our target clients. Grant Automotive has 50 yeas of selling to this marketplace and has established very strong relationships. No matter of technology, it remains a good old boy network. Now, with our product and their relationships, we have entered into negotiations with strong prospects and we estimate we have cut 90-180 days off of the traditional software sales cycle. Grant takes us immediately to the significant players and then directly to the highest levels of management. It is working beautifully. 2) The Automotive Industry follows suite. What one is doing, the others will follow. This is very typical in established industries. We are confident that as significant companies sign with us, we will see many others following, purely on the natur of how they do business and make strategic decisions, and of course the fact that we are offering them something they consider outstanding - a catalogue that not only identified parts accurately and quickly but enhances the merchandising quality of the sale. This is a desired product.
4. What is the current shares outstanding, and float of DEGA?
[Dawn Legg] Again, Minneapolis Group should have this for you. If not, I will have it for you on Tuesday. (I have since been told it is 20mln outstanding, and 2-2.1 million float)
5. Will DEGA aggressively pursue future contracts to expand their business on the World Wide Web? [Dawn Legg] Yes, we are already in the process of receiving two significant contracts from Europe. Against its important to note that our product offering requires many departments to "buy-in" and this takes time. These European contracts should be forthcoming in the next few weeks. In 2000,. we have plans for Asia and South America. Anywhere there are cars on the road, we have plans!
We do have the right formula and it is only due to a lack of substantial funding that has delayed results.
[Dawn Legg] If you would like to talk to someone today, please call and press 0 immediately. Then ask for Mr. Makeyev (who tends to be very busy) or Mr. MacDonald. You could also speak with Amye Mueller
about our markets or if you need customer assistance with the DAS demo, ask for Sean Landers.
Sincerely yours,
Dawn Legg
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