Did I miss this yesterday? Letter to Share Holders posted yesterday here:
NanoTech Entertainment Letter to Shareholders
Corporate Updates as of May 2, 2016
Dear Shareholders,
I wanted to take this opportunity to update you on the current recapitalization plan that
we are implementing.
As was outlined in previous communications, I have stepped in as interim CEO and
have put together a long term fiscal strategy to fuel growth in the company, provide
capital to fund that growth, retain key employees, attract new top level executive staff,
and provide a huge improvement to our balance sheet.
One of the previous methods of funding used by our prior management team for the
expansion in 2015 of the UltraFlix platform was entering into financing agreements that
allowed for conversion into shares. The company currently has over $1.2M in
convertible debt that it is servicing. As that debt is converted into shares, at the option of
the debt holder we are contractually obligated to issue those shares. I have recently
negotiated an agreement to reduce this convertible debt by 80%, thereby significantly
reducing future conversion of shares, and thereby slowing the issuance of new shares,
and providing the ability to reduce the total authorized shares substantially.
This program has taken longer than hoped for, and we have almost completed all of the
steps to submit the reverse split. Unfortunately, we have some contractual obligations
due in April requiring us to issue more shares before we can complete the
recapitalization, requiring us to raise the AS one more time and issue some shares. We
believe that the next move to the AS will be a reduction in conjunction with the reverse
split, which will have a significant positive impact on the balance sheet, and in turn the
value of the company.
With several new blockbuster films continuing to be released on UltraFlix, new platforms
being added every month, proprietary new technological features, our network
continues to expand. With completion of the recapitalization plan, and addition of more
major studios and more exclusive content, including UHD/HDR content, the award
winning UltraFlix network will continue to be the leader in streaming providing the best
consumer experience available.
Thank you for your continued support. We look forward to an incredible 2016 and
beyond.
Jeffrey A. Foley
Chairman
NanoTech Entertainment Letter to Shareholders
Corporate Updates as of May 2, 2016
Dear Shareholders,
I wanted to take this opportunity to update you on the current recapitalization plan that
we are implementing.
As was outlined in previous communications, I have stepped in as interim CEO and
have put together a long term fiscal strategy to fuel growth in the company, provide
capital to fund that growth, retain key employees, attract new top level executive staff,
and provide a huge improvement to our balance sheet.
One of the previous methods of funding used by our prior management team for the
expansion in 2015 of the UltraFlix platform was entering into financing agreements that
allowed for conversion into shares. The company currently has over $1.2M in
convertible debt that it is servicing. As that debt is converted into shares, at the option of
the debt holder we are contractually obligated to issue those shares. I have recently
negotiated an agreement to reduce this convertible debt by 80%, thereby significantly
reducing future conversion of shares, and thereby slowing the issuance of new shares,
and providing the ability to reduce the total authorized shares substantially.
This program has taken longer than hoped for, and we have almost completed all of the
steps to submit the reverse split. Unfortunately, we have some contractual obligations
due in April requiring us to issue more shares before we can complete the
recapitalization, requiring us to raise the AS one more time and issue some shares. We
believe that the next move to the AS will be a reduction in conjunction with the reverse
split, which will have a significant positive impact on the balance sheet, and in turn the
value of the company.
With several new blockbuster films continuing to be released on UltraFlix, new platforms
being added every month, proprietary new technological features, our network
continues to expand. With completion of the recapitalization plan, and addition of more
major studios and more exclusive content, including UHD/HDR content, the award
winning UltraFlix network will continue to be the leader in streaming providing the best
consumer experience available.
Thank you for your continued support. We look forward to an incredible 2016 and
beyond.
Jeffrey A. Foley
Chairman
