SHELBYVILLE, Ky., April 2, 2015 (GLOBE NEWSWIRE) -- FullCircle Registry, Inc. (OTCBB:FLCR) announced today that they have engaged a marketing company to distribute company information to the stockholders and investment community.
The following shareholder letter was released today to cover this agreement announcement and to inform our stockholders of the recent events and activities of the company.
April 2, 2015
Dear Fellow FullCircle Registry Shareholders,
It has been some time since we were able to release information so this letter will discuss a number of issues before us. We were planning on a January letter, however our short attack gave us a setback on some news releases.
FullCircle is pleased to announce that an agreement has been signed for Innovative Marketing to perform Public Relations functions for the company.
Innovative Marketing (IM) is a veteran public relations firm that assists companies with the dissemination of information to current and prospective stockholders. IM has locations in New York, Chicago, Tampa and San Diego. Because of apparent short selling of our stock, we believe it is necessary to retain a public relations professional to spread the good news and enhance shareholder value. Our mission to locate the proper company for these services has been time consuming, because in the process we determined, after exhausting and thorough due diligence, that several companies under consideration had misrepresented their activities.
As we begin our move into the planned acquisition of DME (Durable Medical Equipment) supply companies in Louisiana, we believe that Innovative Marketing will provide the necessary transmission of information, including social media work.
Our agreement includes:
- Develop, execute and maintain high impact comprehensive investor relations programs
- E-mailing investor packages to qualified brokers and individual investors
- Investor Sentiment Work
- Outbound Campaign to New Investors that subscribe to their services
- Frequent communication with company management for strategy discussions and planning.
If this marketing activity is successful then we can continue negotiating in our DME merger project.
Funding Draw With Kodiak Capital
On January 3, 2015 FullCircle issued a draw "Put" with Kodiak Capital for funds. On January 9th the "Put" price was completed. The funding issue fell short of our request because we reached the 9.9% ownership limit of our outstanding shares that was part of our agreement with Kodiak.
During the pricing of the share funding process, FullCircle came under a short attack causing our share issue to be worth less. Our longer-term stockholders may recall that in November 2008, the company came under a shorting event, which took our share price from $.03 to $.003. We recovered back to the original level in a couple of months.
After investigation of this event we do not believe that the two events were related. We concluded that there are professional investors who wait for S-1 applications of this type, and begin selling the stock short after the S-1s are declared effective. We believe these investors make a living performing these shorting attacks.
If we issue additional "puts" under the Kodiak Capital agreement, we will take steps to forestall this type of activity.
Any activity to return our stock to current company value will require some release of additional information. It is intended that we will be able to do this once the stock returns to appropriate market cap values.
FullCircle Estimated Company Value
Considering the events that occurred in January this year, we believe that certain explanations are necessary to understand our current share price.
Our company value is still very strong. Our current mortgage on our property in Indianapolis has been paid down by almost $1 million. In addition, our loss carry forward is $9.94 million, which has a NOL tax benefit value of $3,579,858 as reported in our SEC filings. Many estimates of the value of public companies that are current in SEC reporting and with DWAC approval attribute about $3 million in value to these compliant public company characteristics. Because market conditions always vary we have not discussed any value of our property in Indianapolis.
Using our estimates above, we believe that the company is currently worth substantially more than our current shorted price per share.
A shorting attack is not uncommon in the market especially with companies with a low "float" like FullCircle. There are many companies that have been hit with short attacks. Many may recall that news involving Overstock.com, after a severe short attack in October 2007, is currently a successful profitable company. Even though the company has recovered, the litigation continues against several brokerage houses dealing with "naked shorting" (selling shares that they do not own causing the short attack). The defendants have exhausted appeals of lower court activities and the news just this month stated that it would finally be going to a jury trial and all of Overstock documentation could be released to the public. There is considerable news of this in the financial media.
The reason that all of this is important to our FullCircle shareholders is that we believe that more controls need to be legislated to stop naked shorting of stocks which is very commonplace today. Many companies just hire PR firms and move on and very few litigate like Overstock has done over the past seven years. Obviously, they have had to spend considerable amounts to fight this shorting. The naked shorting process has destroyed countless companies in the past.
FullCircle is beginning the process of our PR activity to help us recover. Our delay is simply because of the cost.
The Louisiana DME Acquisitions.
We continue to work on our Louisiana DME project. The lower stock price has delayed the acquisition potential because achieving part of the purchase arrangements with stock requires more diluted shares. We believe that this delay is short term and we can return to the business of potential acquisitions as soon as our stock price recovers. We are in conversations with a number of acquisition candidates.
It is expected that this activity in Louisiana will provide future news releases, which should assist in our share price improvements as well. Full discussion of our DME acquisition program is provided in detail in our SEC filings.
New Auditing Company Somerset CPAs
As reported in our 8K in October last year, our independent auditors Rodefer Moss, elected to discontinue auditing public companies due to the high costs involved. Consequently, we were required to locate and engage a new auditing firm. We selected Somerset CPAs of Indianapolis that provided the review for our September quarter filed on November 18th.
Introducing a new auditing company to our business is extremely time consuming. The work on the financials for the 10k filings for 2014 is in process and we have completed our field audit with Somerset. The manpower resources are limited to our CEO and our office manager. The last three months have been exhausting. We expect to be completed with the audit by the end of March so that we can return to our work in Louisiana.
Because of the transaction to a new auditing firm, we were forced to extend our 10K filing. For a 10K we are given a 15-day extension when requested. All of the work was done on time but, because of the latest regulations regarding two different filing formats, we cannot get those conversions done quickly. There is a substantial logjam currently and, those companies that do not have those services performed inside have to wait in line.
Georgetown 14 Cinemas
In 2014 we experienced a decline in attendance at our theater. This is consistent with national theater attendance because most of the releases performed poorly. Our market share in Indianapolis was constant throughout the year. We did not experience any "blockbusters" in all of 2014. There are many articles about the quality of movies released by Hollywood in 2014. With the scheduled releases for this year we expect that our revenues will improve but cannot predict revenues until after we can see the quality of movies that are released.
2014
2014 has been a difficult year for FullCircle because our acquisition progress continues to be limited due to the lack of funding for our growth. At this time, we are uncertain as to our direction with additional funding from our S-1 application.
We have recently made an application for the purpose of pulling some of our equity out of the Indianapolis property. We are currently providing those 2014 financial documents for that refinancing application.
In Closing
As we have mentioned in the past our goal is to improve the business model and become profitable to attract merger candidates to help access public funding as well as speed up our growth. This continues to drive my personal activities 24/7, and continues to be our company goal. Traveling through the recession has made this task nearly impossible. Over 2,000 emerging companies have disappeared since 2007. If we had given up we would have been 2001. We have had several candidates at the table over the recent years and there are still several prospects FullCircle is entertaining at this time, however, our share price has created a divergence in that activity as well. Our board of directors continues to be very active on this front.
I have announced to everyone that I am always available by phone. My direct line is published in every shareholder letter and I appreciate the opportunity to visit with our stockholders and truly appreciate your feedback. We need to collect email addresses from all our stockholders so that we can inform you instantly with the release of news. The savings sending email announcements is considerable because processing and mailing our shareholder letters is time consuming and expensive. Please send us your email addresses. We do not share any stockholder information outside our required company business or PR activities. Shareholders who have shared their emails with us receive all SEC filings, PRs, and stockholder letters the day they are released.
We are committed to the business model and expect that we will be able to move the company forward by engaging Innovative Marketing as our new marketing partner. We will continue with the business at hand.
Sincerely,
Norman L. Frohreich, President and CEO
Direct line: 574-238-3699
Source: FullCircle Registry, Inc.
Related Link: http://www.fullcircleregistry.com
Contact information for Innovative Marketing is:
Web site: www.innovativemarketing-ny.com
Email: sales@innovativemarketing-ny.com
Phone: 844-504-8774
This letter may include forward-looking statements within the meaning of the federal securities laws. All statements regarding our financing plans, business strategy, products and services, competitive positions, growth opportunities, plans and objectives of management for future operations, as well as statements that include words such as "anticipate," "if," "believe," "plan," "estimate," "expect," "intend," "may," "could," "should," "will," and other similar expressions are forward-looking statements. All forward-looking statements involve risks, uncertainties and contingencies, many of which are beyond our control, which may cause actual results, performance, or achievements to differ materially from anticipated results, performance, or achievements. We are under no obligation to update or alter our forward-looking statements, whether as a result of new information, future events or otherwise.
See us online at www.fullcircleregistry.com for all SEC filings at the bottom of the "About Us" page.