SyCoNet.com co-CEO, Mr. Ross Rojek Addresses Shareholders.Business Editors/Hi-Tech Writers VIENNA, Va.--(BUSINESS WIRE)--Dec. 28, 2000 SyCoNet.com's (OTCBB OTCBB See OTC Bulletin Board (OTCBB). :SYCD) new co-CEO Mr. Ross Rojek issued a letter to shareholders of SyCoNet.com today to share his vision of what he plans to bring to the Company. The letter follows. To The SyCoNet.com Shareholders, As I am sure you are all aware, SyCoNet.com has had a bleak third and fourth quarter of 2000. With the loss of almost all senior management, most of the support staff, the ability to fund ongoing operations and the devalued de·val·ue also de·val·u·ate v. de·val·ued also de·valu·at·ed, de·val·u·ing also de·val·u·at·ing, de·val·ues also de·val·u·ates v.tr. 1. To lessen or cancel the value of. stock price, SyCoNet began having severe cash flow issues that hampered the company's ability to deal with its debt. Bill Spears Bill Spears (born August 31, 1906) was an American football player. He was elected to the College Football Hall of Fame in 1962. and Kathryn Jacobson have done an admirable ad·mi·ra·ble adj. Deserving admiration. ad  mi·ra·ble·ness n.ad job holding the company together and negotiating much of the debt away, or into long payment terms. The Board of Directors has arranged to bring me into the company as co-CEO. I have been a comic retailer for 12 years, running single and multiple stores, consulted with Tower Books on distribution issues, and have business turn around experience. My initial focus will be to bring the company to a cash flow break-even point Cash flow break-even point The point below which the firm will need either to obtain additional financing or to liquidate some of its assets to meet its fixed costs. and then begin planning for the future. I have outlined our immediate plans, and will be developing them further as we take care of our immediate cash needs. We intend to use options and warrants to negotiate existing debt as needed as needed prn. See prn order. . Short-term programs to deal with current cash needs: -- We have begun collecting on past due receivables. Some of the money owed is over a year old, but we feel confident that we will be able to collect a fair amount. What we cannot collect ourselves, we will sell to a collection agency. -- We intend to sell some of the existing excess computer equipment. By the time the company again has need for so many computer stations, the equipment will be obsolete and need to be replaced anyway. We can expect to get the best price now, as most of the computers and equipment are less than a year old. Medium term programs: -- The SyCoNet computer staff has finished creating a program that will allow SyCoNet to expand the product information available for the animedepot.com web site for immediate sale to consumers. We should be adding products 2-3 times a week as we receive them. -- We anticipate adding products for wholesale sales to SyCoNet's retail store customers. We should have a pre-solicitation catalog catalog, descriptive list, on cards or in a book, of the contents of a library. Assurbanipal's library at Nineveh was cataloged on shelves of slate. The first known subject catalog was compiled by Callimachus at the Alexandrian Library in the 3d cent. B.C. ready for e-mail distribution in January, and begin regular solicitations to those customers every 3-4 weeks. In the beginning, we will concentrate on the international pre-pay customers and domestic COD customers to increase our cash flow. Long Term Plans: -- We expect to explore revenue-generating options with the Virtual ISP An ISP that uses the facilities and services (servers, switches, backbone, etc.) of a large ISP, but retains its own branding for marketing and billing purposes. Virtual ISPs are often formed to target a specific group, whether by location, profession, language or other subject of common service. It is almost complete, and Bill Spears has negotiated with Selenetix for them to complete the programming and testing for the service. At that point, we will explore the options available to us. We could roll out the service ourselves, partner with another company, or sell the assets to another firm. -- We will expand the fulfillment ful·fill also ful·fil tr.v. ful·filled, ful·fill·ing, ful·fills also ful·fils 1. To bring into actuality; effect: fulfilled their promises. 2. services that we can offer for other companies. We feel that there is still strong growth potential working in niche fulfillment contracts. We will expand the types of products carried and fulfilled, and may expand those products also into wholesale distribution. -- We will still explore the possibilities of becoming the US licensor for Anime an·i·me n. A style of animation developed in Japan, characterized by stylized colorful art, futuristic settings, violence, and sex. [Japanese, short for anim licenses. However, we will not develop this until the company has become cash stable. We request that during the next 60 days, the shareholders please refrain from calling the SyCoNet offices and my own offices while we concentrate on fixing our immediate problems. Please contact Paula Kane with investor relations Investor relations The process by which the corporation communicates with its investors. at 360-318-1819 or via email: paula@integritycapital.net. We will also be investigating civil and criminal allegations existing prior to my assuming a management position with the company. The allegations involve theft of the company's physical property and intellectual property. Depending on the relative strengths of the claims, we may file insurance claims, pursue legal action or leave it alone. We will work closely with legal council on these issues. In addition, we intend to review the conduct of previous management to determine whether securities and regulatory laws and regulations have been violated vi·o·late tr.v. vi·o·lat·ed, vi·o·lat·ing, vi·o·lates 1. To break or disregard (a law or promise, for example). 2. To assault (a person) sexually. 3. . We will only pursue those for which we feel there is an adequate claim or potential monetary reward, as the company has limited resources to pursue multiple legal actions. On a personal level, I am excited about SyCoNet.com's great potential. I enjoy working with Bill Spears and look forward to expanding our professional relationship. There are many directions in which SyCoNet can grow and expand, and I have begun to explore some of those options. A number of potential partnerships, which I have been developing for TheComicStore.com, can be expanded to include SyCoNet.com. I take my responsibility to increase shareholder value very seriously. My first concern is to relieve the company of its immediate financial concerns, then to bring the company to an active break-even or profitable status. After that, we will explore our expansion and growth options. Thank you for your attention, Ross Rojek SyCoNet.com Co-CEO About SyCoNet.com, Inc. SyCoNet.com, Inc. is a specialty retailer of popular Japanese animation or anime. Titles such as Pokemon and Dragon Ball Z “DBZ” redirects here. For the meteorological term, see dBZ (meteorology). Dragon Ball Z (ドラゴンボールZ enjoy a mainstream following in the US and abroad, and additional titles are catching on fast. The Pokemon invasion has converted the consumer demographic from a cult type following into the mainstream. SyCoNet.com, through its distribution websites, www.animedepot.com and www.sycodistribution.com, sells a myriad of Anime DVD's, videos, toys and trading cards at a discount from regular retail sources. Nintendo projects total retail revenues for the Pokemon franchise to reach $3 billion for the calendar year 2000 in the U.S. alone, double the sales figure for Pokemon's first 12 months of sales. SyCoNet.com intends to capitalize on Cap´i`tal`ize on` v. t. 1. To turn (an opportunity) to one's advantage; to take advantage of (a situation); to profit from; as, to capitalize on an opponent's mistakes s>. this cultural revolution by focusing its business on sales of Japanese anime products. The Private Securities Litigation Reform Act The Private Securities Litigation Reform Act of 1995 (PSLRA) implemented several significant substantive changes affecting certain cases brought under the federal securities laws, including changes related to pleading, discovery, liability, class representation and awards fees and of 1995 provides a "safe harbor Safe Harbor 1. A legal provision to reduce or eliminate liability as long as good faith is demonstrated. 2. A form of shark repellent implemented by a target company acquiring a business that is so poorly regulated that the target itself is less attractive. " for forward-looking statements forward-looking statement A projected financial statement based on management expectations. A forward-looking statement involves risks with regard to the accuracy of assumptions underlying the projections. . Certain information included in this press release contains statements that are forward-looking, such as statements related to the future anticipated direction of the high-technology industry, plans for future expansion, various business development activities, planned capital expenditures, future funding sources, anticipated sales growth and potential contracts. Such forward-looking information involves important risks and uncertainties that could significantly affect anticipated results in the future and, accordingly, such results may differ from those expressed in any forward-looking statements made by or on behalf of SyCoNet.com, Inc. These risks and uncertainties include, but are not limited to, those relating to relating to relate prep → concernant relating to relate prep → bezüglich +gen, mit Bezug auf +acc development and expansion activities, dependence on existing management, financing activities, and domestic and global economic conditions |
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