Letter to Shareholders
July 22, 2016
Dear Shareholders,
I am excited to update you on our recapitalization plan. FINRA has reviewed and approved
our reverse split effective July 13, 2016 at a 1 for 25.1 reverse stock split of our common stock,
effective for trading. As of this date every twenty-five point one (25.1) shares issued and
outstanding stock has now been converted into one (1) share of common stock. The common
stock is now trading under a new cusip number (NTEKD). The company’s ticker symbol, “NTEK”,
will remain unchanged, but during the next few days of trading the company’s shares of
common stock will trade on the OTC marketplace under symbol “NTEKD”, with the “D”
signifying the split.
Stockholders who hold their shares in brokerage accounts or “street name” will have their
shares automatically adjusted to reflect the reverse stock split. Shareholders of share
certificates will receive instructions from the company’s transfer agent, Clear Trust, LLC. with
specific instructions regarding the exchange of shares. Stockholders should direct any
questions concerning the Reverse Split to their broker or the Company’s transfer agent, Clear
Trust, LLC, 813.235.4490.
We have implemented a 75% reduction in the authorized level of common stock. The reverse
was taken in an effort to greatly reduce the sell-off of shares related to previous financing
arrangements. This was not desired by current management and we have worked hard with
our partners to craft a plan that is beneficial to all parties including our loyal shareholders.
This, of course, will be outlined to shareholders as soon as completed. This move is significant,
partially because we have now reduced our convertible debt by over a million dollars while
defining a go forward plan to secure much needed capital for further expansion of the
business. This has greatly improved our balance sheet as we enter into our new fiscal year
2017. Once completed, this recapitalization plan will hopefully enable us to move forward with
the addition of several new content partners as well as multiple new exclusive content channels
on our award winning UltraFlix streaming network. This plan will also include the expansion
of our 4K Studios operations.
The reduction in outstanding shares also allows us to distribute some restricted shares to the
many great team members that have worked long and hard to build the amazing products
and services we have to offer. By rewarding them with a small portion of ownership we can
ensure their continued dedication to corporate growth and increased shareholder value.
We also have been working with some new team members at NanoTech Gaming to complete
the transaction with them that was started last year. Our goal is to provide the necessary
help so that we can issue a dividend before the end of the year, distributing the shares of
NTGL currently being held in trust to NTEK shareholders finalizing the separation of the
gaming technology and operations from NanoTech Entertainment.
Finally, as we enter into a new fiscal year, we have set a team goal that our 2016 year end
financials will be the last time we file unaudited. We have made recent moves to implement
a new “state of the art” finance department and will be working on improved reporting and
audited financials allowing us to continue corporate growth and maturity. We will continue
to announce significant strides that UltraFlix makes including several more announcements in
the coming months. During this time we understand the need to be as communicative and
transparent as we can be so that our shareholders stay informed.
We appreciate your continued support and we look forward to a very successful remainder of
the year.
Sincerely,
Jeffrey A. Foley
Chairman
July 22, 2016
Dear Shareholders,
I am excited to update you on our recapitalization plan. FINRA has reviewed and approved
our reverse split effective July 13, 2016 at a 1 for 25.1 reverse stock split of our common stock,
effective for trading. As of this date every twenty-five point one (25.1) shares issued and
outstanding stock has now been converted into one (1) share of common stock. The common
stock is now trading under a new cusip number (NTEKD). The company’s ticker symbol, “NTEK”,
will remain unchanged, but during the next few days of trading the company’s shares of
common stock will trade on the OTC marketplace under symbol “NTEKD”, with the “D”
signifying the split.
Stockholders who hold their shares in brokerage accounts or “street name” will have their
shares automatically adjusted to reflect the reverse stock split. Shareholders of share
certificates will receive instructions from the company’s transfer agent, Clear Trust, LLC. with
specific instructions regarding the exchange of shares. Stockholders should direct any
questions concerning the Reverse Split to their broker or the Company’s transfer agent, Clear
Trust, LLC, 813.235.4490.
We have implemented a 75% reduction in the authorized level of common stock. The reverse
was taken in an effort to greatly reduce the sell-off of shares related to previous financing
arrangements. This was not desired by current management and we have worked hard with
our partners to craft a plan that is beneficial to all parties including our loyal shareholders.
This, of course, will be outlined to shareholders as soon as completed. This move is significant,
partially because we have now reduced our convertible debt by over a million dollars while
defining a go forward plan to secure much needed capital for further expansion of the
business. This has greatly improved our balance sheet as we enter into our new fiscal year
2017. Once completed, this recapitalization plan will hopefully enable us to move forward with
the addition of several new content partners as well as multiple new exclusive content channels
on our award winning UltraFlix streaming network. This plan will also include the expansion
of our 4K Studios operations.
The reduction in outstanding shares also allows us to distribute some restricted shares to the
many great team members that have worked long and hard to build the amazing products
and services we have to offer. By rewarding them with a small portion of ownership we can
ensure their continued dedication to corporate growth and increased shareholder value.
We also have been working with some new team members at NanoTech Gaming to complete
the transaction with them that was started last year. Our goal is to provide the necessary
help so that we can issue a dividend before the end of the year, distributing the shares of
NTGL currently being held in trust to NTEK shareholders finalizing the separation of the
gaming technology and operations from NanoTech Entertainment.
Finally, as we enter into a new fiscal year, we have set a team goal that our 2016 year end
financials will be the last time we file unaudited. We have made recent moves to implement
a new “state of the art” finance department and will be working on improved reporting and
audited financials allowing us to continue corporate growth and maturity. We will continue
to announce significant strides that UltraFlix makes including several more announcements in
the coming months. During this time we understand the need to be as communicative and
transparent as we can be so that our shareholders stay informed.
We appreciate your continued support and we look forward to a very successful remainder of
the year.
Sincerely,
Jeffrey A. Foley
Chairman
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