Thank you for reaching out to us and for being a long term
supporter of the company. We are aware that a faltering or stagnant stock
price can be frustrating. We can assure
you that we are sensitive to the market and that it has an impact on the
company as a whole. The price of the
stock and the value of the company can have a material impact on the
structuring of deals and financing. However, this has not affected our
commitment to both increasing and protecting true shareholder value.
During this period of time, the company has keep a tight rein on its stock issuance, avoided toxic financing, worked to increase the overall asset value, and begun diversification of our portfolio. We are aware of the many ways that a company can generate quick cash in the market, but we have chosen not to participate in those practices and funding vehicles or schemes. While the short term benefit to a company may be enticing to some, the long term negative affect on the company and the stock is not an acceptable outcome for us.
The processing of ore for precious metals is not an inexpensive endeavor. A great deal of time, planning, equipment, and money is needed to bring ? and continue ? a successful operation. During the spring of this past year we believed that we had arrived at a funding solution. Based on this belief, we pulled the trigger on the acquisition of much needed equipment and begun the ramp up to processing. However, when the follow through funding required did not materialize it delayed our ability to properly execute on the plan without putting the company at risk.
We looked for ways to creatively put our assets to work, generate both working capital and investment funding to stay on track with the ore processing, and continue protecting the stock by not reacting poorly and succumbing to toxic financing when times got tough. The result was a partnership for the processing of sand and gravel, which has helped to accomplish many of our interim objectives, but has not yet proven out enough to influence our ability to begin ore processing. However, the move into this new area is bearing fruit that we had not expected and we are excited to be able to share some of that information in the weeks to come.
Our final strategic move this summer was to move quicker into the diversification of our asset base and establish an oil and gas division. This is by no means a shift away from our commitment to processing ore for precious metals and other rare earth minerals. This was a sound business decision made when we were put in the right place at the right time. Shareholders will be very pleased with the field that is being acquired. As reported in a recent press release, this deal is basically done ? we are only now waiting on the legal team to tidy things up. We expect to be able to announce the closing along with more details on the transaction shortly. What it will mean to the company is an increased asset base and precious ongoing revenue.
So contrary to popular belief, we are not sitting idly by. We are working diligently to make this company a real player in the market and we will not sacrifice the long term success for a short term burst in the market. We have kept our internal team small, thus keeping overhead to a minimum. We have leveraged our resources, partners, and talents to keep things moving in a positive direction and we will not deviate from our commitment to making all of these operations successful for all of our stakeholders.
CGrowth Capital, Inc.