Dear Shareholders and Potential Shareholders.
It has been some months since I last wrote, and I can only apologies for the lack of communication.
A lot has happened over the last few months, and I would like to address a number of the issues we have faced, and have been overcoming.
We strongly believe that EnableTS has a solid technology platform that is used around the world and huge potential for growth. I can assure you, that I am fully committed to bringing this company forward, and believe in a strong future for our company. I would like to address a number concerns rose by shareholders, and hope to address them.
Firstly – I would like to address the outstanding stock.
In December 2011, MMUH Issued 200,000,000 shares to WAMMF Group Inc. As of today, I have been informed that 100,000,000 of those shares were returned. Reducing the current outstanding to 4,147,390,046
In my previous correspond I noted that I had asked the officers of the company to return their common stock to the company. Arising from that, we are pleased to announce the following changes in the stock structure, which will take place immediately after the ticker symbol change, and the reverse split have completed.
I will return all 850 shares of my common stock to the company; this will reduce the outstanding amount by 850Million shares.
Arising from Mr. David Lovatt has stepping down as a director and officer of the company. Mr. Lovatt will return 600 million of his 850 million shares. Leaving him in possession of 250Million shares pre-reverse split, and 250,000 shares post reverse split.
Mr. Lovatt has been a great asset to the business, but he is concerned that he has too many other commitments to be able to offer his full focus to EnableTS. He feels EnableTS deserves nothing less than 100% commitment and it would be unfair on business for him to give anything else.
Post retirement of the officers’ stock, the outstanding pre-reverse split will be 2,697,390,046 (down from 4,147,390,046) and 2,697,390 (down from 4,147,390) post reverse split.
In addition, Mr. Lovatt has agreed to convert his Super-Voting stock into 25Million shares of a new class of preference stock. The new class will essentially be a convertible preference stock, which will allow Mr. Lovatt to convert the shares at a 1:1 conversation into common stock at a future date.
The next issue I would like to address is the issue of the reverse split. It is unfortunate that the reverse split has taken so long. To be completely honest, this is an issue caused by our lack of access to information from the previous management team. We have been requested to provide historic information to FINRA, which pre-dates our involvement in the company. Getting access to this information was very difficult, and we have no contact with any previous officers of the company, and we are at the mercy the information to hand. That said, through a lot of manual work, and communication with various third parties, we have managed to collate the information FINRA has requested, and we passed this onto them. We hope this will conclude the action.
At this point I would like to address a concern raised by many shareholders of the effect of a reverse split. It would appear many shareholders fear a reverse split will result in a massive fall in the value of shares, and further huge dilution. Although in many cases, a reverse split is followed by huge dilution, this is not our intention. It is upmost importance to me to reduce dilution wherever possible for shareholders. We are doing many steps to do this, including the return of our own shares to the company. In addition, it is our intent to reduce the authorized share capital from 5Billion to 10Million Shares.
That said, it is important for the company to raise capital, in order to succeed in growth, this is of equal importance to all shareholders, as companies that fail to grow show little value, and little return for shareholders. I can assure you, the purpose of raising capital is for reinvestment back into the business.
Going forward, when raising capital, I am proposing the introduction of some measures to help protect existing shareholders. At this stage, these measures are a proposal, and are subject to review by the board. Until a detailed review has been completed, and their fairness and legality completely analyzed, they will not be implemented.
Firstly, I have made a proposal that we to introduce the right of first refusal for all existing shareholders. Which means in the event we offer equity to an investor, all existing shareholders will have the right to purchase equity at the same rate to the extent where their shareholding does not become diluted. For example: (based on sample and not actual figures)
Sample Corp Inc. offers to buy 300,000 shares at $0.12 per share. If the current outstanding were 3,000,000 shares, the increased issuance would have a 10% dilatorily
effect on the percent ownership of the other shareholders. If existing shareholder John Doe owns 50,000 shares in company, we guarantee that John Doe would have to option to purchase an additional 5,000 shares at the same rate. Thus John Doe would be able to maintain 1.66% of the companies’ holdings.
The above of course would have to be in line with the relevant SEC regulations. In addition to the above, we are also focusing on finding investors who are interested in investing for the long term. This will reduce any downward pressure on the stock, and increase value for all parties. One approach is to facilitate the offering of 12 month restricted stock to direct investors. This includes any current shareholder who has an interest in increasing their holding in the company. This will remove our dependency on large investment firms, who often only have interest for short term investment.
Shareholders wishing to benefit from direct investment can contact us at invest@enablets.com. As with other investment, all shareholders will have a right to maintain their shareholding.
The next issue I would like to address with shareholders is our current status on the OTC Markets. In previous press releases, we make a point to say we are going to target the “Current Information” tier on the OTC Markets. We hoped the archive this last year, although failed our target. The reason for our failure was based on inability to access financials prior to July 2010. The “Current Information” tier requires two years of previous financials, which we were unable to provide.
In addition to our inability to gain access to previous information, I also have to apologize for my own fault in letting us slip back down to No Information tier. Despite our inability to get previous financials, it does not excuse the fact I could have failed to publish the latest quarter. I make no excuse for my failure, other than it has been an extremely busy 6 months, and going forward I will ensure financials are filed on a timely manner over the coming quarters.
The next thing I would like to clarify is how current management came involved in Mobile Media Unlimited Holdings, and as much as I know about the history with TZfuma. Although we have covered this is several documents previously, I feel it appropriate I clarify it.
The current management teams’ first involvement with Mobile Media Unlimited Holdings Inc. was in July 2010. Before then, I had no dealings or knowledge of the company. We were advised by a third party, that the company previously had an electronic cigarette subsidiary, which had been moved out under legitimate circumstances. Since our involvement in the business, we have been overwhelmed by shareholders concerned about the TZfuma subsidiary and what happened to it. Regrettably we have no knowledge, either direct or indirect about the specifics of TZfuma. What we do know, is Mobile Media Unlmited Holdings as of July 2010 has
no involvement or ownership in TZfuma or any other subsidiary, other than EnableTS. We apologize sincerely to shareholders for our incapacity to provide any further information. We hope that any previous management of the company does not reflect on your opinion of the current management team, and that our true value begins to show for shareholders.
On a final note, I would like to advise shareholders, that we are always open to hear their feedback, and happy to take calls from them should they have any questions.
Kind Regards
Danny Jenkins
Danny Jenkins C.E.O EnableTS Inc.
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