Regeneca(TM), Inc. Releases Letter to Shareholders and Distributors


IRVINE, Calif., Jan. 10, 2012 (GLOBE NEWSWIRE) -- RegenecaTM, Inc. (RGNA.PK) has released a letter to its shareholders and distributors that reviews the past year and discusses plans for 2012.

"Dear Shareholders and Distributors,

As we begin 2012, we want to share with you a review of the successes and challenges of the past year as well as our plans and ambitions for this coming year. Last year began with the merger between Ethos Environmental and Regeneca International and the shift in product focus from fuel additives to natural consumables. Our plans for the year included a February pre-launch of our network marketing program based on sales of our male enhancement product RegenErectTM, the creation and release of direct response advertising surrounding RegenErect, the launch of our natural appetite suppressant RegeneSlimTM, and the full launch of our direct response network marketing model in November.

Our pre-launch was successful and resulted in a dramatic increase in sales in the months of February, March and April. We launched our RegenErect commercials through various outlets in March and April which spurred the success of our distributor base. As we were preparing to release RegeneSlim, we suffered our first major challenge, the recall of two lots of RegenErect. We handled the recall by offering an exchange or refund to all customers returning recalled product without negatively affecting awarded commissions. These returns caused a substantial hit on our resources. Soon after the recall, we released RegeneSlim and a new daily formulation of RegenErect. During this time, we were also completing a lot of technical work surrounding the integration of our direct response and network marketing programs. RegeneSlim has been well received by our distributor base. However, our second formulation of RegenErect did not have the same impact as our first formulation and was not a success. We learned from this experience that the market desires an impact male enhancement product rather than a daily pill.

Our next focus was on developing a new impact formulation for our male enhancement product. We developed a new formulation which has been well received by our distributor base. This product was released in late September leading up to our Launch Event in Las Vegas on November 11, 2011. Our Launch Event was a success and focused on RegeneSlim, RegenErect, our new female intimacy product RegenArouseTM, our antioxidant fruit blend beverage RegeneBlendTM, our compensation plan, and our new professionally-produced Opportunity Video. Coming out of this event, we have seen great successes in our distributor base including our first Black Diamond distributor and many other rank advancements.

Given the initial success of our new formulation of RegenErect and the seasonality involved in the production process, we exhausted our inventory in mid-December, and, as a result, sales of RegenErect have been suspended temporarily. We are currently in the process of bringing the production of RegenErect in house. We believe we will have inventory available for shipment again in February 2012. This interruption in sales is causing another strain on resources and our sales momentum. Our new processes will ensure that we no longer have seasonality issues with our supply chain.

Given all the events of 2011, the Company has accomplished many things to set itself up for success in 2012. We have created a cost-effective online direct response campaign for RegeneSlim. Our back-end IT systems have been updated to fully support the merging of our direct response and network marketing activities. We have completed financial audits for 2009 and 2010 and filed all SEC-required financial filings to become fully reporting and current as of December 2011. We have begun work to bring production of our male and female intimacy products in house which will provide the Company with inventory stability and reduced costs. We have diversified our product offerings to include RegeneSlim, RegenErect, RegeneBlend and RegenArouse. We have also completed our professionally-produced Opportunity Video to provide our distributors with a key tool in their recruitment efforts.

As management looks to 2012, we are seeing explosive growth with our impact weight-loss product RegeneSlim. We are planning on a large increase in our direct response marketing activities. The Company has been able to integrate, both technologically and philosophically, the concept of creating customers via commercials and other types of direct response advertising, and then turning such customers into leads for and customers of our distributors. This model gives us a huge advantage over competitors both in network marketing and in direct response. There is no other direct response company that has a sales force like Regeneca that will call its customers to maintain autoships, upsell, and recruit and will simultaneously fund the Company's media spend. The Company will expand its product line within the current categories of natural products for both wellness and intimacy, starting with building a line of complimentary products to go along with RegeneSlim. We also look forward to the international expansion of our business in both Latin America and Asia. Management feels it will be necessary to complete and continue financing throughout the year to support these objectives. To that end, the Company is planning a move from the Pink Sheets to the Bulletin Board which will make us available to a wider range of the investment community and new financing opportunities.

We look forward to a successful and rewarding year for our shareholders, our distributors, and our employees.

Sincerely,

Matthew Nicosia, President, CEO and Chairman

and

Dan Kerker, CFO

About RegenecaTM, Inc.

RegenecaTM, Inc. (Pink Sheets:RGNA.PK) was formed to create and commercialize premium products that help to improve health and fight the signs and symptoms of aging for a complete life of wellness and happiness, including our natural appetite suppressant RegeneSlimTM and our natural male enhancement product RegenErectTM. We do this while drawing our products from the earth in an ethical strategy that will emphasize regrowth, reforestation and recycling. This is our "Whole Earth Whole Body" approach to health. More information can be found about RegenecaTM, Inc. at www.globenewswire.com/newsroom/ctr%3Fd=219428%26l=4%26a=www.regeneca.com%26u=http%253A%252F%252Fus.lrd.yahoo.com%252FSIG%253D10tr1ran6%252F%252A%252Ahttp%25253A%252Fwww.regeneca.com%252F" target="_top" rel="nofollow">www.regeneca.com, or follow us on facebook.com/regenecainc.

FORWARD-LOOKING STATEMENTS

This press release may contain forward-looking statements, including, but not limited to, statements regarding RegenecaTM, Inc. and their plans, products and related market potential. Forward-looking statements may be identified by the use of the words "anticipates," "expects," "intends," "plans," "should," "could," "would," "may," "will," "believes," "estimates," "potential," or "continue" and variations or similar expressions. These statements are based upon the current expectations and beliefs of management and are subject to certain risks and uncertainties that could cause actual results to differ materially from those described in the forward-looking statements. These risks and uncertainties include, but are not limited to, risks and uncertainties discussed in RegenecaTM, Inc.'s filings with the Securities and Exchange Commission, which factors are incorporated herein by reference. Readers are cautioned not to place undue reliance on any of these forward-looking statements. RegenecaTM undertakes no obligation to update any of these forward-looking statements to reflect events or circumstances after the date of this press release or to reflect actual outcomes.


            

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