From the SHM Notice:
SUNCOM TELECOMMUNICATIONS INC.
120 North LaSalle Street, Suite 1000
Chicago, Illinois, U.S.A., 60602
Over the past two years we have endeavored to create a new company from the old Cam-Net Communications Network Inc. ("Cam-Net"). Having satisfied all of the requirements of a bankruptcy reorganization plan in March of 1999, with disbursements to creditors to be completed by August, we are now turning our full attention to building the Company into a customer service and transaction processing powerhouse. The Company has successfully raised over US $1,000,000 in new equity since 1997 and is in the process of raising additional equity to execute our new business plan. The following details our development:
THE PAST
After the Company stock was delisted from trading in October, 1996, a new plan was developed to continue in the long distance business with a slow transition to 800 inbound customer care call centers becoming our focus. Unfortunately, our largest customer stopped paying for services and created a $500,000 shortfall in cash flow. The Company was unable to collect and is still pursuing remedies through the courts with a trial set for November 1999. In February of 1997, Cam-Net applied for protection under Canadian reorganization legislation, namely the Companies' Creditors Arrangement Act, which gave bankruptcy-like creditor protection.
Under the Arrangement, creditors were satisfied by selling off the long distance business for just over nine million dollars Canadian, and were issued fifteen million shares of new stock. The name of the Company was changed to Suncom Telecommunications Inc. ("Suncom"). Suncom kept all of the rights to law suits and the other assets. To continue the business, Suncom borrowed three hundred thousand dollars Canadian from the creditors to pay for legal and accounting costs that were required to move the Company forward. These funds have since been repaid. Suncom then settled a lawsuit with Telehub for $400,000, providing working capital. In October of 1997, Suncom's common shares were relisted for trading on the Over-the-Counter Bulletin Board. Through January 1998, there was a significant amount of stock being sold, depressing the value of a common share to only a few cents. In 1998, the Company was able to complete its first acquisition of a call center servicing cable companies, paying $105,000 by way of note due in one year or convertible to stock at $.10 a share. The note was ~* converted in December 1998 as the common shares of Suncom were trading upwards of
$0.45.
Suncom raised $800,000 in private placement debt convertible at $0.10 in February of 1998. Most of the subscription was placed with existing shareholders and all has been converted to stock allowing the Company to remain virtually debt free, other than its operating debts. Suncom is presently in the process of raising another $4,000,000 and hopes to complete this private placement soon.
THE FUTURE
The core business of Suncom is transaction processing and customer service. Our goal is to combine the cable billing and customer service business with e-Commerce transaction processing. With the ability to provide back-end services to any website, Suncom provides merchants both the opportunity to sell their products via e-Commerce and toll free numbers, offering to increase sales by allowing customers several channels by which to research and purchase products. Suncom looks to partner its success with the retailer, charging a minimal upfront cost, while making its revenues on the transactions generated by e-Commerce and over the phone transactions. We believe that analysts are correct in predicting that catalog companies will derive a significant part of their revenue from e-Commerce by the end of the year. Suncom plans to have its own significant retail catalog as a showcase very shortly. Suncom's target market for the e-Commerce and customer service packages is small and medium size companies that want to expand their business through the internet and toll free services, but are unable to invest a great deal to get started.
Suncom's goal, once the fund raising efforts are complete, is to add 2,000 web sites by year end. The moneys raised will facilitate this growth by adding equipment and bandwidth to expand capacity. Once this is done, Suncom can begin to market these products:through the strategic partnerships that have been formed, providing a low cost of acquisition marketing plan. Suncom intends to increase revenue not only by enabling more e-Commerce websites, but also by facilitating more traffic and transactions to our clients. Suncom's call center will provide customer service support to client sites, giving consumers several payment options as well as a live representative to assist in their purchasing decision. Suncom is now in a position to capitalize on two trends; increasing intemet shopping activity by the consumer and more and more businesses wishing to create an internet presence. With the minimal cash commitment required to use our e-Commerce solutions, there has been little resistance by merchants to add our services. As mentioned, Suncom has begun to expand its revenue base by marketing through strategic partnerships with internet service providers, advertising and marketing agencies, and business consulting finns. A marketing campaign is in the work to further expand client base.
Management is looking forward to a very successful year by capitalizing on the biggest change in retail since the mail-order catalog, e-Commerce. This megatrend will allow Suncom to position itself as one of the leaders in customer service and transaction processing for business to business and business to consumer transactions.
"Dr. Dennis Sinclair"
Dr. Dennis Sinclair,
President, Chief Executive Officer
and Director |
