NEW YORK, July 01, 2019 — — On4 Communications (OTCPINK: ONCI) is pleased to announce the following corporate update from CEO Steve Berman:
Shareholders, I am happy to report that we had another record quarter with sales up YOY and qtr over qtr. We also achieved major milestones which we will discuss in this letter to shareholders. Not only did sales go up but our costs went down significantly making us more profit per unit sold.
We tried successfully a Facebook and Instagram campaign which netted us real profits immediately. The next campaign starts on Monday, July 15th and we are hoping to expand our campaign to include Twitter as well. Because the internet has worked so well for us we are looking to continue the campaign every month. Facebook as I have said keeps giving us residual revenue even we are not running ads. In addition we reduced the OS by 1.4 billion shares which can be seen in the new Financials.
We are doing everything we can to unlock shareholder value and reducing the OS was a big start. We have also released our new OBD designed for Insurance companies, where we can now do all the Telematics that the insurance companies want as well as save lives.
I have a conference call this week and a meeting in a couple of weeks with 2 insurance companies and have reached out to more. The goal is to get a test running and then we can release a private label product for them.
As we have discussed Giftcardexchange.shop is moving very quickly. We have chosen a designer and we are currently looking over various designs, Again the biggest issue is not build out but back end compliance. We have to verify the validity of the card with the retailer and make sure its still valid before we can list on the site. We have also discussed an advertising platform that will give us 2 streams of revenue which is always what I want in every business we are involved with. If we can accomplish this we will get ad revenue from all retailers making this a huge deal.
As I have said in the last Update this is still a viable business for us . I have heard back from all 3 companies who are very interested in this concept. In speaking to the senior care providers I discovered that like medical care dental care is all over the place with costs and fees. Since Mobile dentistry is so new most states don know how to deal with it. The only way to make this work is to provide no cost to the patient. I believe we can make this work and this can be a viable business for us.
The 2 private label deals we have done have so far been great. We are meeting with Pharrel in the next 2 weeks to discuss the first mining co opp. The company is very interested in our pricing model and we will be putting together a presentation showing them how they can protect their machines and lower insurance costs especially in 3rd world countries. Bfound mobile is ready to go and can be ramped up at a moments notice. The heavy truck business is a huge opportunity and we are moving forward everyday. This is an untapped market and we are the first to be there. The roofing co is on its 3rd leg of rollout and we will be done with everything by the end of July.
The pl2 is going amazing. I still have an NDA but many of you have seen the ads as they appeared in NH, MAINE, and PENN. Our first invoice will be paid on July 15 and they have requested another 400 units as they roll out across their footprint. I have been told by the owner of the co that they intend to purchase another group in the south-east with 25 dealerships and that will be going through within the next 3 months.
In addition we are in talks with 5 other companies regarding private label opportunities, 2 in Europe and 3 here in the USA .
As discussed we have signed a lease for the 5000 sf place on the river in Vancouver. We have also negotiated for an additional 20,000 sf if we need within the next 24 months. In addition we have been approached by various companies who want to franchise our idea all over Canada and especially Germany. Canada is on the forefront of the CBD revolution. The amt of land is limited and we will be one of the players as we roll out CBD oils and other cbd products. This business is about to explode. CVS just announced it will sell cbd oils for health and beauty needs. As big companies get more involved the interest will grow and the demand will exceed supply. In my opinion SIFTHOUSE will be our jewel in the crown over the next couple of years.
I have always believed this from day one we should try and find a way to unlock shareholder value. I thought with the share reduction of 1.4 billion shares we would be able to do that . According to my legal team this reduction would be a positive for the stock. I guess they were wrong. That being said we are looking at additional ways to give value back to the company. I have met with 2 German hedge funds who are interested in making an investment in our company. We would not consider anything at less then an .0085 value or higher. We are also looking at a company buyback of shares as well as myself buying shares on the open market. I believe that our company is in an amazing place and I am willing to put my money where my mouth is. We are looking at many different opportunities and we will keep you informed of which one we take. The share price is so under valued here I hope you keep your shares and don’t let the bashers and MM steal your stock. Of course these are just some ideas and nothing is set in stone. I will be updating our shareholders if anything moves along or changes.
The company is in a great position to capitalize on new markets. Distracted driving is an epidemic in the world and is only getting bigger. Cannabis is one of the fastest growing businesses led by total legalization in Canada with 10 other countries to follow. We have Private label deals in place and we are creating new revenue streams. We are positioned for the future and will ride the wave. We are now branching out from our original model for the company which was to sell in Dealerships. Our goal if I have learned anything is to be diversified into many different businesses because as technology changes and AI changes the world we will be diversified into 6 different businesses all different and self contained. We are poised to have a great run and be in many different sectors of the economy to create amazing growth. We will discuss many other items in the next shareholder letter.
This release includes forward-looking statements within the meaning of Section 27A of the Securities Act of 1933, as amended, and Section 21E of the Securities Exchange Act of 1934, as amended. All statements regarding our expected future financial position, results of operations, cash flows, 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, as described in our reports filed with the Securities and Exchange Commission, which are available for review at www.sec.gov, to differ materially from anticipated results, performance, or achievements. We are under no obligation to (and expressly disclaim any such obligation to) update or alter our forward-looking statements, whether as a result of new information, future events or otherwise.
On4 Communications, Inc.