Onteco Corporation, ONTC, President Releases Letter to Shareholders
Sep 21, 2011, 09:15 ET
MIAMI, Sept. 21, 2011 /PRNewswire/ -- Onteco Corporation (OTC.QB: ONTC), (the "Company", or "Onteco"), released today the following letter to shareholders from its President, Dror Svorai:
I am writing this letter, and issuing it as a press release, because I wish to update not only you, our shareholder, but the broader investment community, on several topics related to the Company.
Although you can't read it directly in our public filings, our subsidiary NexPhase Lighting, Inc. continues to make steady progress toward the development of escalating sales revenue. Also important, it continues to draw Lighting Industry top-of-mind awareness for its state-of-the-art, patented technology, even to the extent that some major lighting manufacturers are interested in using our technology in their own LED products, or having us build private label product for them. Clearly, it is in our interest to pursue such opportunities since they allow us to rapidly broaden our market footprint. It is worth noting that LED today is less than 5% of the commercial lighting market, but is forecasted to represent over 50% within a few years. The situation is akin to what a "disruptive technological change" did to the computer industry in the 1980's – a change similar in impact in terms of large across-the-board end-user cost reductions and accelerated efficiencies. We believe NexPhase is at the forefront of such technologies, while it continues to develop its new, ever-expanding product portfolio.
Let us point out that doing what we are trying to do isn't easy. Since starting what essentially is a high-tech engineering/manufacturing company, Onteco has had to consume large amounts of cash (at least large to us) and use ongoing debt financing to fund its day-to-day operations, subsidiary engineering and product development efforts. We believe that we take a realistic view of this type of funding in that it is essential to this stage of our lifecycle. We believe that as we grow and sales develop, the need for such financing will diminish or represent a decreasing percentage of our cash needs. Yet, for now, such funding has been our best alternative since direct equity investment so far has not been offered to us on terms that we have felt have been in the company's, or shareholder's, long term best interest.
To us, Onteco's focus must be to optimize our opportunity in LED lighting, given that the LED lighting "revolution" is just beginning and will escalate dramatically in the years ahead. That said, we are continuously vetting potential strategic partnerships and alliances, and more important, acquisition opportunities of companies with business models that complement our current direction, with an eye to finding those that will amplify our return on investment.
Several of you have noted that we have periodically engaged in "investor awareness" campaigns. On an intermittent basis we will continue to do so because as an early stage company with (to us) significant investment at stake, we believe we need to broaden the reach of our overall message, not only to the average investor, but to third parties who may be able to assist us in our future strategic and capital formation needs.
I am sure that the above doesn't answer many of your questions about what we are doing or will do. Yet, I thought that you should be updated on your Company, and some of the topics that come to me routinely.
We are here for the long term. We are here because we understand the time, money and pure human effort that must be invested in order to succeed in a new business. We are committed to making Onteco the success that we know it will be.
Thank you for taking the time to read this letter.
Dror Svorai, President
About Onteco Corporation
Onteco Corporation was founded to develop innovative, practical and cost-effective solutions to some of the most significant environmental challenges facing us today. Additionally, these solutions must show promise of generating significant, ongoing profits for the company. The company determined that one industry that meets these criteria is the Energy Saving Lighting Industry, and as a result acquired NexPhase Lighting, Inc., in February 2011.
Additional information about Onteco Corporation is available at: www.Onteco.com
About NexPhase Lighting, Inc.
NexPhase Lighting, Inc. is a designer and developer of proprietary high quality LED (light-emitting diode) lighting fixtures and control systems for commercial applications. It believes its products will be the lowest cost, highest efficacy fixtures available in the LED Lighting Industry. All NexPhase lighting products incorporate its proprietary "NexSense Technology™", which provides benefits well beyond the generally acknowledged advantages of all other LED lighting fixtures. NexSense control systems use a unique, "patent pending' wireless protocol, which provides for an unsurpassed reduction in architecture and infrastructure installation cost in commercial applications, as well as significantly reduced maintenance and ongoing operation costs.
For more information about NexPhase Lighting, Inc. visit: http://www.nexphaselighting.com
Safe Harbor Statement:
This release includes "forward-looking statements" within the meaning of Section 27A of the Securities Act of 1933, as amended, and Section 21E of the Securities Exchange Act of 1934. Certain statements set forth in this press release constitute "forward-looking statements." Forward-looking statements include, without limitation, any statement that may predict, forecast, indicate, or imply future results, performance or achievements, and may contain the words "estimate", "project", "intend", "forecast", "anticipate", "plan", "planning", "expect", "believe", "will likely", "should", "could", "would", "may" or words or expressions of similar meaning. Such statements are not guarantees of future performance and are subject to risks and uncertainties that could cause the company's actual results and financial position to differ materially from those included within the forward-looking statements. Forward-looking statements involve risks and uncertainties, including those relating to the Company's ability to grow its business. Actual results may differ materially from the results predicted and reported results should not be considered as an indication of future performance. The potential risks and uncertainties include, among others, the Company's limited operating history, the limited financial resources, domestic or global economic conditions -- activities of competitors and the presence of new or additional competition and conditions of equity markets.
CONTACT: Onteco Corporation
Dror Svorai, President, (305) 932-9795
SOURCE Onteco Corporation
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