Letter to our shareholders(21SEP2017)
Webmaster ㅣ 2017-09-21 ㅣ 2810
Dear shareholders,
We would first like to express our gratitude to our valued investors who have attended the IR meeting on September 18, 2017. We would also like to thank our shareholders for sharing their opinions on developing our IR meetings. As our stock price has further declined after the IR meeting, our management is aware that our investors are more concerned about Finetex EnE. Thus, we would like to provide additional information about the Rights Issue that will take place in the upcoming weeks.
1. Mandatory underwriting obligation by the underwriters
Shinhan Investment Corp. and Cape Investment &Securities will assume mandatory obligation to underwrite the whole issuing amount. Thus, Finetex EnE will be able raise sufficient capital to implement our capex plan and execute our bond redemption according to schedule. This will also allow our firm to focus on reaching our goals as promised during our recent IR meeting.
2. Allow our current shareholders to be the first to subscribe for the new share warrant
Finetex EnE will prioritize in allowing our current shareholders to be the first group to subscribe for the new share warrant. When the subscription period expires for our current shareholders, we will execute a public offering of the renounced shares. We hope our shareholders will be able to benefit from subscribing to our new share warrants.
We expect that there will be zero to little renounced shares based on other firms that have executed the Rights Issues, where the current shareholders get the priority to purchase new share warrants. We will provide the details of the process for the Rights Issue on our firm’s home page by 9/21/2017. Furthermore, we will ensure that our investors will also receive the details through the financial institutions that will be responsible for the securities underwriting.
3. Higher the issue price per share, more beneficial for everyone
After we announced our plans for the Rights Issue, our shareholders have become increasingly concerned about our declining stock price. Some of our shareholders may be worried that the firm wants to intentionally lower the stock price to execute a successful Rights Issue. As mentioned, Shinhan Securities Corp. and Cape Investment & Securities will assume mandatory obligation to underwrite the whole issuing amount. This implies that any renounced shares from our current shareholders will be offered to the public and the underwriters will take all of the under-subscribed shares from the public offering. Thus, our firm will be able to raise sufficient capital to expand our business regardless of the issue price per share of the stock. Therefore, our management would like to emphasize that both Finetex EnE and our investors will benefit from a higher issue price per share.
4. Capitalize on favorable market conditions
We would like to address our shareholders’ inquiries on our expected revenue for Q3 and Q4 of 2017 and next year as well. As mentioned in the IR meeting, Finetex EnE has been able to reach record Q1 and Q2 revenues for our nano business in Q1 and Q2 this year. Our management will capitalize on favorable market conditions to further expand Finetex EnE’s nano business in the upcoming months.
Furthermore, Finetex EnE will take advantage of the favorable government policies for the renewable energy industry. Our management is currently preparing to develop more photovoltaic power plants to expand our energy business.
Our firm will bolster efforts to achieve higher revenues and profits in both our nano and energy businesses. Our management will strive to maximize our shareholder’s value to reward our investors who have trusted us and persevered with us throughout our firm’s difficult times.
Sincerely,
JC Park
Founder and CEO
Finetex EnE, Inc.
2017.9.21
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