December 28, 2011 12:05 ET
PayChest: 2011 Year End Corporate Update
HONG KONG--(Marketwire - Dec 28, 2011) - Paychest, Inc. (PINKSHEETS: PYCT )
Dear Stakeholders
During the year the management team at Paychest has been quietly but diligently working towards two major goals:
- Improved corporate governance and timely financial reporting
- Commercial production and market readiness of our unique flushable and biodegradable suite of sanitary products
We have aspired to establish the Paychest corporate name at an elevated standard, where the stakeholders are able to trust the financial and other statements of the Company. My 2010 end of year statement mentioned that the "financial data as presented to the new management team has taken some time to unravel, and we continue to investigate and clarify matters as they were presented." Although this is an ongoing process, after much work we now have the Company filings and financial reporting structured and being prepared independently. We have also been able to meet the stock certificate audit standards of DTC and are now supported by an SEC recognized and approved transfer agent; both are significant steps towards market trust.
For the coming year we will be able to devote more time and human resources to the business of business, with most if not all of our significant obstacles removed. We are optimistic about our product and its ability to carry itself into the market.
We have made some significant progress in a number of crucial areas relating to production and sales and are now seeing these labors coming to fruition. These include the re-branding and repackaging of the product which will be announced shortly, commencement of production, establishment of marketing and distribution networks, raising of development capital, with the next step being purchase orders in hand, which we believe to be imminent -- stay tuned for an announcement in the near future.
We intend to devote ourselves to driving sales and revenue for the Company, and to ramping production output to meet anticipated demand.
The statement below tells you in dry terms about our milestones and aims. It will not tell you the confidence the management team has in our ability to make Paychest a viable and substantial cash flow business.
Wishing you and your families a safe and Happy Festive Season, and a prosperous and healthy New Year.
Pete Coorey
President and CEO
PayChest 2011 Year End; Review & Plan
During 2011, PayChest achieved a number of significant milestones that have transformed the Company. Those milestones are as follows
- Started Commercial Production of the Flushaway® product line following successful research, test and sampling
- New sales distribution agent for North America led by a senior manager who was previously with Kimberly-Clark, Peru
- A legal judgement of March 2009 for $4,000,000 was settled for $25,000 total and a separate judgment from April 2006 lapsed and is now not enforceable. They occurred before this management came in
- Obtained production and marketing funding in excess of $500,000. LiAni Holdings of Hong Kong, a private investment group has agreed to continue funding
- Share buyback has begun with a share reduction already occurring. This buyback will continue
- This buyback followed a DTC share certificate audit to verify the shares outstanding. This audit was done to comply with Depository Trust Company eligibility
- Following DTC eligibility the Company hired an SEC recognized transfer agent, Transfer Online, Inc.
- Hired Veronica Kuch, an independent accountant, to prepare the Company's financial statements (Kuch Consulting - www.vjkuch.com )
- Started the process for developing a sister brand to complement Flushaway®. Studies have shown that the Flushaway® name may not be well received in certain markets. This is much like the car companies who may sell the product under a different name. A new product brand name has already been identified, trademark applications are in progress, and a new internet URL registered.
- New packaging has been completed
During the 2012 calendar year the Company is aggressively planning the following:
- The Company is currently negotiating several Purchase Orders. When completed an announcement will be made
- The Company plans a name change to better reflect the underlying business as well as a symbol change
- Completion of the proposed dividend. Currently, the holdup is documentation that has not been received by the Company from former management. Management is taking steps to recover these documents.
- Website improvements for the new brand are planned
