page 1 of sh letter January 28, 2018 Dear Sharehol

page 1 of sh letter January 28, 2018
Dear Shareholders,
This past week has seen a lot of activity with the new management team focusing
on implementing a go forward strategy in rebuilding the company. The primary
objectives are moving forward on closing funding, cleaning up all outstanding
issues with OTC Markets and closing out all disputes including paying all
settlements in full. We have made significant progress on these fronts and expect
to have updates shortly on all of them.
One of the most frequent questions that we have received this past week is about
how the company plans to implement a share buyback strategy. To that end, we
will explain in this letter how this is accomplished. Share buybacks are covered
under the Securities and Exchange Commission’s (SEC) Rule 10b-18. The rule
allows a company's Board of Directors to authorize the repurchase of a certain
amount of shares based on the following four rules. We must purchase all shares
from a single broker or deal during a single day. Because we have an average
trading volume less than $1 million per day and a public float value below $150
million we are unable to trade within the last 30 minutes of trading. We must
repurchase at a price that does not exceed the highest independent bid or the last
transaction price quoted. We can't purchase more than 25% of the average daily
volume. In addition to the above trading rules, we must provide a detailed
disclosure for repurchases in our Quarterly & Annual reports with a table
showing, on a month-by-month basis: the total number of shares purchased, the
average price paid per share, the total number of shares purchased under publicly
announced repurchase programs, and the maximum number of shares that may
be repurchased under these programs (or maximum dollar amount if the limit is
stated in those terms)