Nice Update !! http://www.otcmarkets.com/otciq/
Post# of 96879
http://www.otcmarkets.com/otciq/ajax/showNews...f?id=13940
Quote:
FOR IMMEDIATE RELEASE
Investor Contact: Dan Wong
Phone: (858) 381-4677
Email: dwong@ntek.com
Letter to Shareholders from NanoTech CEO Peter Riordan
Recap of Quarterly Shareholder Call & Business Update
SAN JOSE, CA – March 12, 2015 – NanoTech Entertainment (OTCPINK: NTEK) (“NanoTech”
or the “Company”) CEO Peter Riordan takes an opportunity to recap the Quarterly Shareholder
call and provide shareholders with an update on the business.
On Thursday March 12 at 2pm we conducted the first of our Quarterly Shareholder calls. With
over 200 people in attendance I am happy to provide a summary of the call and provide an update
to on the business for those unable to join. As mentioned in the notice, we setup a special line for
people to call in with their questions and every caller that reached out to us was given the
opportunity to have their question answered on the call. We look forward to even greater
participation this June at our annual shareholders meeting which will also be streamed to those
that cannot participate on site.
It was my pleasure to speak about NanoTech Entertainment’s recent activities and prospects for
success. NanoTech is an early stage public company. Our strengths are reflected in our highly
capable product development teams which have produced amazing new technology, especially in
the high growth 4K Ultra HD consumer television market. Through our content advisory board
and skilled business development team we currently have hundreds of hours of 4K video available
to our viewers and hundreds more being processed as we speak. We are the world leaders in
delivering 4K Ultra HD content to television viewers. We have accomplished this and many other
feats in a limited capital environment.
I have spent my first couple of months as CEO evaluating every aspect of our business and
operations, looking at our historical performance, and devising a plan that will carry us forward
with the growth and returns that we all want to see expanding us to the next level.
New Overall Business Plan
Our first move to increase shareholder value was to reorganize the company so as to provide a
clearer operating focus for everyone in the company.
I have drilled down to each division setting new policies and plans in place to increase
communication both internally and externally. Moving forward each division will be structured
such that it has its own management structure and operates with its own separate P&L focused on
profitability within each group. Our teams now have clear strategies and projects plans which will
help us operate more efficiently and effectively. We have developed a new plan that calls for substantial
We have developed a new plan that calls for substantial increases in both revenues and profits for
this year and beyond. By focusing on our core competencies, we have now have a plan in place
to increase our gross profits by more than $8M in 2015.
We have also setup a new corporate governance board that will be focused on providing guidelines
both internally as well as to our shareholders for how we drive the business moving forward. We
will publish more information as it becomes available on our investors portal at ntek.com
Financial Issues
In my evaluation of the company, I have identified key areas that need improvement primarily in
the financial department. We are actively seeking a new controller who will play a pivotal role in
growing the company. We intend to have this role filled in the next month. We have also started
interviewing possible candidates for the CFO position. We have engaged with a new Transfer
Agent, Clear Trust, who had purchased our previous Transfer Agent, and they have been instructed
to continue our policy of transparent reporting to our shareholders.
I am working closely with our executive staff, financial team to ensure that we can gather all of
the necessary information from our previous CPA and Audit firms for our multiple companies and
complete audits in a timely fashion. This is a priority for me and the company.
Buybacks & Dividends
The company has historically put an emphasis on sharing profits through dividends and increased
value through share reduction. While both of these are very worthy goals they must be prioritized
against a plan for increased growth and value. When it makes fiscal sense to execute either of
these and there is not a more beneficial use of profits, we will once again visit both share buybacks
and dividends.
Share Structure
This week we have increased our Authorized shares from 740MM to 990MM. 990MM was our
previous authorized amount and is where we need to be in order to effectively operate our business
plan. There are several factors that needed to be considered in making this decision including
Ability to attract new Key employees and executives
Continuing to meet obligations to the employee stock plan
Continuing to meet contractual obligations
Availability to Secure Future Funding
Availability for New Technology, Product and Company acquisitions
Corporate Diversification
We have separated our Gaming Division to be led by my good friend Al Stone into a separate
public company. NanoTech Gaming assets were sold to the new company in exchange for shares
of the new company. As we have previously announced, those shares will be distributed rateably
to NanoTech shareholders. The exchange allowed us to completely recoup our investment in the
Gaming Technology. This move was made as there was little overlap in resources.
Studio Operations
We have recently expanded our Studio operations with the addition of some world class talent in
the film editing area. In addition, we have taken on a significant investment in new technology
allowing us to continue to stay on the cutting edge of 4K Ultra HD. With research firms now
reporting that 50% of US homes are expected to have a 4K TV by 2020 our investment in this
space is continuing to be affirmed.
We are working on developing several original content products in addition to expanding our
current offerings including comedy specials and reality shows.
Media Hardware
Two years ago we pioneered the hardware space with the award winning NP-1 product. What was
not anticipated was the speed at which the 4K Smart TVs would enter the market. Given that the
primary goal of the NP-1 was to capture viewers for our 4K service and we will be on 90% of the
4K Smart TVs by the end of Q2, our focus on the NP-1 has shifted from consumer to OEM
relationships. We will continue to service this space, but our focus will be on optimizing recurring
revenues as opposed to one time sales.
UltraFlix
UltraFlix is our flagship product. We have been experience exponential growth with Thousands
of new customers singing up in the past few days
We are continuing to innovate and expand the offerings on the UltraFlix network. We are
partnering with multiple TV manufacturers to ensure that UltraFlix is available everywhere. We
have had great success with Vizio and Samsung and are about to launch the product with Sony,
Hi-Sense, LG, Sharp and Panasonic.
We are also adding support for many new devices including an OSX version that will be available
on the new 5K iMAC at the end of this month, as well as iOS and Google TV devices.
I am pleased to announce that we have signed a deal with Armada Music and will be offering a
dedicated EDM music channel later this month, Armada TV.
Beginning in Q2 we will be launching Live 4K events including concerts, music festivals and
sporting events. Along with our Live streaming events we will be offering our “All Day 4K”
channel featuring a 24 hour stream of 4K content.
We have recently singed new technical partnerships. I am happy to announce that as of this week
we are an authorized partner with Dolby for both the Dolby Vision and Atmos products, and will
soon be offering content featuring both of these technologies.
As the saying goes, content is king, and we have been making incredible strides in our content
offering. We will be adding titles from Millennium, IFC and Nu Image this month. We will be
making content announcements from studios including Warner Brothers, Sony Pictures, Lionsgate
and Miramax in the coming weeks as well.
What I’m most excited about is that today I can announce that we have entered into a contract with
Paramount Pictures. Our first title from Paramount won an academy award last month. The 4K
Digital adaption is currently under review by the films creator and director and once he has
approved it we will be the exclusive provider for streaming this movie in 4K Ultra HD. Look for
an announcement regarding this title in the coming days.
In Conclusion, We have had a very productive quarter and have a several major announcements
that will be released to the public in the coming weeks. Please continue to provide our IR
department with any questions you may have and we will be happy to continue to grow together.
Best Regards,
Peter Riordan
Chief Executive Officer
NanoTech Entertainment, Inc