HANX Company newsletter 5/99:
Geneva, 8th May 1999
SHAREHOLDERS NEWSLETTER
HAAS NEUVEUX & Co.
(Symbol OTC-BB: "HANX")
HANX has been re-structured after 18 unpleasant months and is now consolidating and auditing its new activities.
In October 1997, after launching its equestrian-based sponsoring and leisure business, initially in Polo (South American structures set up, personalities/experts signed up, yard and teams functioning, etc.) HANX installed a center in Geneva from which to manage European, East Bloc and Middle Eastern operations. Negative reactions in the local press towards the intention of setting up a polo-demonstration property caused tension and some investors were obliged to withdraw from the project. The withdrawals led to a year of legal wrangles during which the project's backers suffered considerable damages in defaults and settlements.
During the last months of 1997, the share-price, after its pre-tension rise (US$ 0.10 to 0.98) dropped back to its starting levels. During 1998 management bunkered down to keep the Company alive. In 2nd half of 1998, after assuming all legal liabilities in its own name, management decided it was of no further interest to integrate the sport-management and sponsoring business into the Company, thus voiding a previous announcement that had been made to that effect. Meanwhile Susan Barrantes - recognized world polo authority - and founding partner of the Company's Argentinian and Uruguayan operations died in an auto accident.
At end 1998 the company merged with the timber and lumber business set up in Venezuela by Rick Smith - a proven track-record figure in the world timber business and one of the industry's strongest salesmen (married to a Venezuelan), whom HANX came to know through polo contacts in Miami and Vancouver. Initially non-core, this activity has shown sufficient promise to now become the full focus of Haas Neuveux & Co.
The Venezuelan company is called Productos Forestales Bolivar C.A. (PFBV) and a description of the company, including photographs of plantations and saw-mills, management résumés etc. can be found on the following web-site:
pfbv.com
The plantation-grown Caribbean pine produced by PFBV is very competitive high-branch pine (it sells to USA and even to Canada) and is of world-class quality. PFBV is expecting particularly strong orders from Central America and the Caribbean for post-hurricane re-building, and also from Japan where Rick Smith, who speaks Japanese, is a certified authority on lumber.
To accelerate the development of PFBV, all shareholders are requested to now make available to the company their (and their friends') contacts and relationships both in Venezuela and other countries. Rick Smith can in fact sell more than he can produce and is seeking finance or partnerships to increase saw-mill capacity (mills are currently available due to lower economic activity in Venezuela).
Following the merger with PFBV, the share-capital structure of Haas Neuveux is as follows:
Shareholders------------Free-trading------------Restricted shares
Venezuela------------------------0--------------------------78'996'000
Switz./Italy/UAE--1'128'012-------------------------13'324'306
USA------------------------771'128-----------------------------------9'091
Float--------------------5'673'521------------------------------------------0
Total--------------------7'572'661--------------------------92'329'397
HANX left the previous structure in place (20'906'058 shares) in order not to damage faithful existing shareholders and issued a new tranche of 78'996'000 restricted shares in exchange for PFBV. This issue allowed the Venezuelan interests a sufficient block of shares to serve as guarantee for timber concessions etc. This share-issue consumed the remaining authorized share-capital.
Management estimates that 5'000'000 shares of the float are in the hands of an experienced group of Italian, Swiss and Gulf businessmen and a further 1'700'000 free-trading shares are in the hands of other people known to management, many who have been shareholders for over 10 years. The unidentified float is approx. 870'000 shares (less than US$ 100'000 at current share-prices). During the whole of the period under review, friends of the Company have continued to buy shares to reduce the unidentified float. Management warmly welcomes dialog with new and old shareholders.
In conclusion, there is now a valid new business in Haas Neuveux which management is ambitious about. Shareholders are urged to help spread the news so that share prices can return to former levels.
Share-prices can be found at:
quote.yahoo.com
HANX management is at your diposal for any information you may wish to have regarding the Company and the new business. SEC Edgar filings are being updated.
References, numbers, web-addresses, investor-relations:
Tel: +41-22-9000000 (Geneva)
Fax: +41-22-9000002 (Geneva)
Tel: +1-888-6820922 (USA freephone)
Tel: +58-86-840065/84/93 (Monagas - Puerto Ordaz)
Tel/Fax: +58-2-9857023 (Caracas)
Tel: +58-148610171 (Venezuela mobile)
Share-price: quote.yahoo.com
Email: LGVF@bluewin.ch (investors)
Email: ruthrick@telcel.net.ve (operations)
Web-site: pfbv.com
Club-site: clubs.yahoo.com
Discussion: Subject 27100
Account: BANCO DEL ORINOCO - No. 0001-14545-2
With our very best regards and don't hesitate to call on +41-22-9000000.
HAAS NEUVEUX & Co. (HANX)
Michael J.A. Harrop - President
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