The Road Ahead for Alternative Energy Partners (OTC: AEGY): A Letter to Shareholders
June 20, 2014 at 11:20 AM EDT
LOS ANGELES, CA -- (Marketwired) -- 06/20/14 -- Alternative Energy Partners, Inc. (OTC Pink: AEGY) (PINKSHEETS: AEGY) makes the following statement:
Our stock is set to trade again on the over the counter market grey sheets beginning upon the opening of the markets on June 20, 2014. We appreciate the support of our shareholders during the past two weeks. Our corporate teams has heard from far more supportive and encouraging investors than we have heard from discouraged and negative investors, and that has buoyed on our staff's commitment to continuing to grow the business during this trying time.
We believe we have fully disclosed all material items in our SEC filings and are not aware of any material omissions or misstatements in those reports. We are unaware of any activity in the trading of our stock that could create concern. We are communicating with the SEC to elicit and answer any questions they may have that may have caused the suspension.
Business Growth and Development
During the past two weeks, while trading in the shares has been suspended, the Company has been continuing to grow the business and plan its going forward strategy.
We are happy to report that the Company's business has continued to grow, with more and more customers signing up to use the www.pharmajanes.com online ordering and delivery platform than ever before. We have had to hire additional drivers to service the increased demand.
As we reported earlier this week we are committed to launching the products and services we have already announced and you will see more news from us on this front as we go forward.
I am pleased to report that we are also engaged in new initiatives to grow the business, including being in late-stage and interesting potential partnerships with a variety of medical cannabis-related business partners which we will be in a position to announce soon.
The Merger: A New Vehicle
AEGY also has agreed in principal to merge with or be acquired by a Canadian company listed on the Canadian Stock Exchange, with a dual listing on the Frankfurt Exchange to be applied for thereafter, and a letter of intent has been received by the Company and nearly all of the terms have been agreed and approved by the Board of Directors of the Company. The letter of intent is expected to be signed no later than Monday, June 23, 2014, followed by the preparation of a definitive acquisition agreement. This transaction should be completed in the next 4 to 6 weeks, and will position the Company to undertake regulatory testing and approval of its cannabis-based products in Canada, where regulatory standards for cannabis-related product testing are more encouraging. It will also result in a more orderly trading market for the Company's common shares, which will help to end some of the trading difficulties currently faced by the Company's shareholders. Once the transaction with the Canadian public company has been closed, it is intended that the previously announced merger between the Company and SK3 Group, Inc. ("SKTO") will be completed in the Canadian public company, such that one entity will move forward from the two companies. The boards of directors of both companies have approved this transaction.
Specific details of the planned acquisition transaction and its effect on the Company and its shareholders will be provided as soon as the definitive acquisition agreement has been signed, but the Company will update shareholders when the letter of intent has been signed. Rest assured that we will continue to move forward with maintaining any requisite regulatory filings and we will audit our financials if and as required to do so.
Corporate Governance and Operations Changes
While this merger is ongoing, we are commencing a search for a full-time CEO for the merged company, and we will be restructuring the board of directors for the new company, so that the new company's board of directors will look and function increasingly like a traditional public company board of directors, with a combination of directors drawn from management and independent directors, as well as having committees overseeing audit, compensation, and nominating and governance functions. We are also going to be enhancing the new company's capabilities by creating and building out an advisory board of high profile and well placed individuals in the industry and related roles to assist the new company in its growth. We are also seeking an appropriately qualified CFO to join the new company so that everyone will have confidence in our financial statements and their presentation.
I want to thank our shareholders and customers for continuing to believe in the Company and its business model, and we look forward to the exciting days ahead as we continue to serve the growing population of medical cannabis patients in California, and later nationwide.
PharmaJanes' online ordering platform allows authorized medical marijuana patients to order, process and pay for their authorized needs, in a simple, safe and secure ordering and payment interface. Simple Prepay, a separate division of AEGY, is a merchant payment solution developed to offer a convenient payment solution to medical cannabis dispensaries, collectives, and delivery services. PharmaJanes also is the exclusive online marketing platform for Medical Greens, a subsidiary of SKTO.
Safe Harbor Statement
Alternative Energy Partners, Inc.