Letter from ETVL to shareholders.
Dear Shareholder,
We have had numerous requests for reasons that our market price per share has declined so dramatically. The management who, as owners of large blocks of common stock, are equally concerned. Their concern is two-fold.
Firstly, as shareholders, they have seen a substantial loss of their equity position, but most importantly, the decline in market valuation has hindered efforts to acquire other franchise companies. The acquisition of which would have accelerated the growth of EXA. Secondly, the decline in market share has also hindered the raising of additional equity funds which were to be used as part of the acquisition program and to launch a strong marketing program for the sale of franchises and other ancillary products to further revenue growth and deliver profits.
Our best guess is that professional "short" sellers entered the EXA market immediately after the beginning of trading under ETVL in late July. It took awhile before we could line up support and slowing saw the price per share rise to approximately 50% of the opening transaction. As the market price rose, "shorts" would again enter the market and our supporters did not have the depth of financing to continue their support.
It is important to note that almost all of our shareholders have held their positions with confidence that management would successfully deliver a profit structure over the next several years making their investment and commitment to EXA a profitable investment strategy.
We have been chastised for not releasing information to help support market price. The concept of press releases is to provide the investing public with important information about on- going transactions that is to be used in making investment decisions. Our legal counsel, specializing in securities matters, have been reluctant to agree to the publication of "fluff material."
As is exp0lained by counsel; dot the "i's" and cross the "t's," have signed contracts in hand, promise less and deliver more. Perhaps we have been over sensitive and over cautious. There are too many inquiries requesting information about the Company and its short and long term goals for us not to respond publicly so that everyone shares in the information.
The undersigned owns almost 3 million common shares and close friends and family own almost another 3 million shares. We have committed in excess of $9 million in equity and loans. This was not done with other peoples' money (known as OPM in the financial community).
Information, good or bad, will be more forthcoming. We believe that the dissemination of information will help sop up the short position to a great extent. At this time it is not our intention to reverse split the shares as is being recommended by various shareholders. We will do what we determine to be in the best interest of all the shareholders.
We intend to have a meeting of shareholders within the next 90 days. We are looking forward to meeting with those of you who can attend and sharing our aims and timetable.
Sincerely,
Stanley Priskie
President |
