PORTLAND, Ore., May 4, 2010 (GLOBE NEWSWIRE) -- Software startup Lecere Corporation (Pink Sheets:LCRE) (www.lecere.com) would like to issue a general statement to investors from the CEO, Jim Morris.
"Lecere Corporation is a technology startup company. Our goal is to build a very large company over the next several years. Our dreams are no different from the dreams that Steve Jobs, Bill Gates, and Larry Ellison had long ago.
"Lecere came into existence a little over a year ago in a merger/acquisition with Full Circle Image. Unfortunately, our plans for raising immediate and significant investment capital foundered in the waters of the economic meltdown.
"We persisted, however, and in about August of 2009 we began to raise Rule 504 investment capital. That investment capital has been injected into the company in relatively small tranches. The amount of operating cash we receive in each tranche and the share price at which we sell free trading stock are directly dependent on our street price for the last five trading days.
"The financial information (balance sheets and income statements) inherited from Full Circle Image was not in good condition. It would have been expensive to bring that financial information up to date. We elected instead to spend the small amount of operating cash we were able to raise on software development and marketing/sales. But after the recent dramatic increase in our sales volume, the folks at www.pinkotc.com took a closer look at our disclosure statements and found them lacking in financial information, i.e. up to date income statements and balance sheets. In order to remove the caveat emptor, we must bring our financial information up to date. That may take a few weeks, and it will be expensive.
"We have always been careful to disclose that Lecere has had no revenue and no customers up to this point in time. Google, Microsoft, Oracle, and every other technology startup has been in a similar situation to that which Lecere finds itself in today. It is normal and expected for a startup technology company.
"Rome was not built in a day, and Lecere will not become a great company in the next few weeks or even months. This is typical of technology startup companies. It is impossible to ramp up revenues from nothing to millions of dollars per year in a few months. We at Lecere would like to counsel patience on the part of investors.
"On May 3, we started a pilot project at our first customer site in Portland, Oregon. We have budgeted about a month to get the software operational and working to the satisfaction of ourselves and the customer. It is critical that we build a good foundation for our software at a relatively small, friendly customer site. We must take it slow and make sure we get it right. Again, we would counsel patience on the part of investors with regard to our software development process. We have done this many times before in other startup companies, and we know exactly how to develop a world-class product, launch it, support it, and improve it.
"Lecere did two Rule 504 investments in the last 2-3 weeks that raised the number of floating shares by approximately 1.2 billion shares. Every time Lecere does a Rule 504 investment, the company files a Form D on Edgar. Shareholders can review those Form D documents by going to the Edgar website. The Form D documents designate how much money was raised in each Rule 504 tranche, but does not designate how many shares were sold.
"The management of Lecere holds a large number of restricted shares, but management has no intention of lifting restrictions and then selling the shares for a very long time, likely a year or more. Even when management does eventually sell shares in the distant future, we will be restricted by Rule 144 in the number of shares we can sell each quarter. Management of Lecere all believe that Lecere could achieve a market cap of as much as $1 billion in the next 4-7 years. Management is in Lecere for the long haul, and we are looking for investors who will support Lecere for the long haul.
"There have been no lifting of share restrictions in the last few months, and we don't intend to lift any restrictions in the next several months. The only activity that will increase the number of free trading shares in the next several months is Rule 504 investments, which we will continue to do in order to raise required operating cash. The good news is that with the recent increase in our stock price, dilution from Rule 504 investments will be significantly less than it has been in the past few months. If Lecere could raise operating cash by selling restricted stock in a private placement, that would be our first choice for raising investment capital, but we have been unable to raise significant operating cash by selling restricted stock.
"Even if Lecere's outstanding share count does reach as much as 25 billion shares in the future, a Lecere market cap of $1 billion would result in a share price of $0.04 per share. For those who invested at $0.0004, this represents a 100 to 1 return on their investment in, hopefully, 4-7 years. Of course, we can't guarantee this will happen, but if it does that's a pretty darn good return on investment for long haul investors. Believe me, those are the kind of prices that management will want to see before we start selling significant amounts of Lecere stock in the future. We are patient. I would counsel patience for investors.
"Lecere has a great opportunity in front of it. In fact, management thinks Lecere has a chance to be one of those startups that becomes a part of American technology industry legend. It's going to be a fun ride."
About LecereTM Corporation
Lecere Corporation (Pink Sheets:LCRE) of Portland, Oregon develops and markets Lecere FIRMSTM, an integrated, Web-based suite of interactive restaurant management software that runs on handheld wireless devices. FIRMS helps restaurants reduce their operational costs while enhancing their customers' experiences for increased revenues and profits.
Lecere and FIRMS are trademarks of Lecere Corporation. All other legal marks are the property of their respective owners.