Dear Shareholders, The Management of SutiMco Inc, would like to wish everyone a Happy New Year. We would like to start a New Year with addressing several issues that came up on this and other forums. We believe in transparency and accuracy so our intent here is to directly answer several questions. We find ourselves at a disadvantage due to the fact that while we are required to announce and post significant events and developments, some information is also under a non-disclosure as well as insider information that we have to carefully watch. What complicates matters, is that a lot of what is posted by bloggers does not always contain true facts as they pertain to the actual procedures and the way things are done and governed under SEC, FINRA, DTCC and other agencies. These events are connected, and where one agency may approve a corporate action, another may not. So when something is stated as a fact, it’s hard for the management to argue against a procedure, unless the shareholders really knows and understand how public companies function and how the rules and regulations are applied as it relates to all regulatory agencies. 1. 1. The current Global Lock with PRPM: As we acquired PRPM, there was no Global Lock, and there was no indication that DTCC was considering imposing one. In Q4 2013, DTCC sent us a letter stating that they were considering imposing a Global Lock due to a transaction involving PRPM (then ProPalms Inc) in 2009. This was new to us, but we responded with remedies and options immediately. After several months of negotiations, DTCC decided to impose the GL, while still considering several remedies and options that our attorney and management presented. Our remedy was to rescind the 504 Reg.D in question and have the investor group return over 1 billion in shares to DTCC fungible account.( The investor agreed) Although the lock is still on, DTCC is still considering that option. Although our management had no hand in the original deal in 2009, we and all the other shareholders are suffering from that action since funding and other options are made more difficult for our company. We,However, are still optimistic due to the fact that recently Mr. Kogan, out attorney was successful with the DTCC on removing a Chill from one of our other related entities, (TDEY). DTCC has shown more positive rulings on these matters in the past 12 months. We are still working at it. 2. 2. The Acquisition with Kobe Inc: We were aware or Mr. Jorge Luis Saenz due to the fact that he purported to be a shareholder in several of our other companies and interests, as well as seeing his posts on various forums and receiving direct emails from him. As we developed our plans, Mr.Saenz contacted us with an acquisition proposal. The deal looked interesting and we signed an MOU to move forward. Mr.Saenz was fully aware of the GL, but just as we did he believed that our attorney can get it removed. As things progressed, we did seize an opportunity to acquire another public company, and decision was made that we can do a merger, and pay dividends to PRPM. I’m sure that some of Mr.Saenz frustrations were due to the fact that we could not disclose our full funding initiative, or how close we are in completing the deal.We as management realized that if we launch his and other companies severely underfunded would simply mean a quick demise. Kolbe Inc needed a quick “fix” and they did not have the patience to wait for the main money to arrive. We, on the other hand did not want to use any “toxic” funds for a quick fix. We did not receive a formal letter and we only learned of Mr.Saenz and Kolde Inc., decision of not moving forward and signing a definitive agreement from the Blogs (same as the rest of the shareholders). We still believe in the validity of MJ marketspace and continue to pursue and acquire projects and new deals. 3. 3. Mr.Saenz “insider” information and other issues. We have developed a very friendly rapport with Mr. Saenz, and were disappointed to see him leave our group. His departure was voluntary and unprovoked by our management. Mr. Saenz was given information that was readily available and already published, we cannot comment nor have a firsthand knowledge as to what he may have done or acted upon receiving any “insider” information while under our MOU. We also feel regret and are very disappointed that he chose to post disparaging remarks and continue to attack all of our companies and interests. 4. 4. The past and future dividends: First, let’s examine the procedure of how the dividends are set up and distributed. a. A. The company Board and Management decides on a dividend. That is usually a result of an acquisition and/or a spin off. In most cases, it is structured to reward old and current shareholders with a potential value that is directly attached to the number of shares they currently hold. b. B. The company then submits a “corporate action” request with FINRA and awaits for an approval. The dividends could be paid out in many ways and using several currencies, including stock .Sometimes, even after a prolonged back and forth, FINRA may not approve a dividend exchange. (as it happened in one of our previous public companies.) c. C. Once the dividend is approved, FINRA posts the “event” of the corporate action with a dividend date and submits the request to DTCC. DTCC then issues (electronically) all of the CEDE and CO (in the street name) shares to the Broker Dealers which in turn are credited to individual shareholders account using a predetermined ratio (ex: 1 for 10 shares..etc..) D. The Company is working on the transition between SUTI and PRPM, and will file for a dividend with FINRA as soon as all the transactions and transitions are completed. The action date and dividend dates will be announced by FINRA once the “corporate action “is approved. We, the management, appreciates all of our shareholders, investors , employees and vendors. We wand to wish everyone a Happy New Year.
Posted on: Wed, 31 Dec 2014 17:23:19 +0000
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