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PRESS RELEASE: Open Letter to Mycom Group, Inc. Stockholders
CINCINNATI--(BUSINESS WIRE)--June 3, 2005--Rob Bransom, Chairman and CEO of Mycom Group, Inc. (OTCBB:MYCM) today released the following open letter to the company´s stockholders. Mycom markets a wide range of software, hardware, enterprise solutions and technology services. The letter appears here in its entirety.
June 3, 2005
Valued Stockholders,
The directors and officers of the Mycom Group, Inc., are aware that there may be speculation and confusion regarding some recent corporate activities. We want to provide our stockholders as much information as possible concerning the company´s recent reverse 1 for 10 stock split, plans for raising capital, and our strategic business plan for the future.
In the Mycom press release, issued May 13th, Mycom´s President, Jim Bobbitt provided reasoning for the split:
"The reverse split, which provides flexibility to obtain new capital, represents the first step in the Company´s planned financing strategy to enhance growth. We are currently in negotiations with financial organizations, seeking funding programs which will allow us to invest in advertising, marketing and development of our sales organization. If we are successful in raising capital, we should be able to more successfully introduce and grow our new products. We also believe the stock split combined with new capital we are seeking will allow us to consider
other growth opportunities such as merger and acquisitions."
The reverse stock split did not materially affect any stockholder´s proportionate equity interest in Mycom, nor did it change any rights of the holders of common stock. After the split, the company had 90,000,000 authorized shares of Common stock. Before the split, there were about 74,000,000 shares issued and outstanding. Currently, after the split, there are about 7,400,000 shares issued and outstanding, which provide the company about 82,600,000 shares that can be used for future funding.
The purpose of the stock split was to provide stock:
-- That could be registered and used to raise working capital for the company, without having to approve and add more shares.
-- To raise capital that would be used to support a sales growth and marketing program that includes extensive advertising of Mycom´s award winning mycomPRO(R) mailMAX(TM) e-mail security service and the introduction of the new mailMAX with Encryption and planned introduction of mailMAX with Archiving.
-- To raise capital to support expansion of Mycom´s direct and channel sales organization
-- To raise capital to be used to reduce the company´s debt, interest expense and improve its credit terms with vendors. To help improve the balance sheet.
-- To provide stock that could be used for acquisitions or mergers that would support the company´s growth objectives.
It is worth noting that the above reasons also help facilitate the combined activities of the Board, your officers and your investor relations firm to raise interest about Mycom during our communications with institutions and individual investors.
We recognize that some stockholders may have been investors of other stocks that were split--without positive results. Our strategy in taking this action is to enhance stockholder value. This initial step helps us avoid diluting the stock, while obtaining capital, which in turn, should help us to increase revenues and improve the balance sheet. We hope that you will consider Mycom´s reasons for taking such an action and that future performance will meet your expectations.
On behalf of the Board of Directors, thank you for your support of the Mycom Group, Inc.
Sincerely,
Rob Bransom
Chairman, CEO
Mycom Group, Inc.
NOTE: This Mycom Group Letter To Stockholders may contain certain forward-looking statements within the meaning of the "safe harbor" provisions of the federal securities laws. Such statements are subject to certain risks and uncertainties that could cause actual results or outcomes to differ materially from those currently anticipated. Important risks and uncertainties, among others, that could cause actual results to differ materially from those described in these statements include the strength of the U.S. economy and other factors. For additional information about Mycom Group, Inc. please refer to the current Forms 10-KSB and 10-QSB as filed with the Securities and Exchange Commission.
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