ONCI On4 Communications Inc (PK)

LETTER TO SHAREHOLDERS ON THE STATE OF THE COMPANY

 

NEW YORK, NY -- March 16, 2018 -- InvestorsHub NewsWire -- On4 Communications, Inc. (OTC: ONCI) announces the following letter to shareholders from CEO Steve Berman:

 Below is an update of most everything that is going on at the company, some you have heard about and some are new. I will be discussing everything I can talk about.

 

FINANCIALS

Q1 revenue was another record with growth continuing at a rapid pace. We enjoyed an 18% plus increase over last quarter and a huge increase over Q1 last year.

The numbers speak for themselves as revenue grows at current dealerships as well as new dealerships signed. I expect revenue to continue on the uptrend as we sign new contracts and distribution deals. February was a record month and March is shaping up to be even better. #REVENUERULES

 

DEALERSHIPS

We are signing dealerships every week . Last week was a record as we signed dealer groups in New England, New Jersey, New York and Florida. We have contracts out that we expect to close on an additional 10 dealer groups within the next 10 days. Our re-order pace has grown significantly as we are getting re-orders at 97% of all stores.

Our deal with USW is starting to pay off as we should be in 5 huge stores in Florida within the next week. Currently, I have only been turned down by one group in Florida and not because they did not love the product but it was a financial decision.

What I am most pleased about in our dealer network is that most stores are increasing there re orders and selling more units every month. We are collecting the cash as fast as we can and will only get better as we put more feet on the street. At this point in time we are the only company dealing with both fleet groups and single and large dealership groups.

All new stores are starting at a minimum of 25 units per month and some stores are selling 200 plus per month. We have also started to ask some of the new stores for CIA and in some cases are getting it. We started this with nothing and we are growing at an incredible pace and will continue to grow month over month as we add new stores to our Network. #DEALERSHIPSROCK

 

DISTRIBUTION

I am pleased to say that besides our core sales people we have signed distribution deals with companies based in New England, SouthEast and Middle Atlantic states, Texas, West Coast (including Washington thru California), Minnesota , Midwest, Southwest, England and Ireland, Canada, Europe, UAE and Middle East, South America and, most recently, Australia and New Zealand.

In total ,we have over 85 salespeople selling our products all over the world. We are in discussion with groups in Mexico, South Africa, Asia and Scandinavia. I will update as soon as we close these deals. #WEAREWORLWIDE

 

MIDDLE EAST

Working with Consulting/distribution agent Mr. Graham Bell. Graham has very good relationships with the Auto and technology industry throughout the GULF region including UAE and Saudi Arabia. Just returned from the region last week.

 

DUBAI TAXI CORP

The main purpose of my trip was to push our current best prospect Dubai Taxi "over the line" into a test mode. From there I (Graham also) can follow up and, subject to a successful test, move towards closure of at least initial unit orders. The objective is to close these initial orders and then ramp up orders over the coming months.

Dubai Taxi Corp has 5500 in their fleet. Following the installation, Osman, the IT guy I was working with, was then confident to be able to download the Fleetsafer software to his computer and monitor the taxis. He assured me he would call directly if he had any problems. Have not heard anything. I will follow up this week.

Dubai taxi has now completed their test with a report being generated to the CEO. While they will not commit we should hear from the CEO within the next couple of weeks. This report could include a "Green light" to move ahead, a provisional "Green light" with recommended changes required, or an outright rejection. Fingers crossed.

 

COLONY TRUCKS- KUWAIT

I had a very long meeting with this company. They have over 1000 trucks and construction machinery in their fleet. We went through all the advantages of Fleetsafer and how this can manage their trucks, Buses, etc as they all travel throughout the Gulf region (not just Kuwait). Jamil Malik and Alvin Lewis are the key guys there and agreed to test the system. Graham will be sending them 2 units now for testing. I will follow up with them in a week to make sure they receieved the units and get them to start a test. We will contact the team in Vancouver again to walk them through it. They are currently testing the product

 

MERCEDES TRUCKS/VANS- UAE

Met with Navin Sook, head of Fleet management and Safety/Security features. In addition to just selling/leasing their trucks/Vans, he also makes sure to sell them the additional features package which includes many of the already existing Mercedes features such as automatic breaking , tracking , etc. We discussed including the Bsafe/Fleetsafer software as part of their package offering. He said it could not come as part of the Mercedes package as Mercedes only puts their own items in a package; however, he said he could potentially "bake" it in as a separate item but included in an overall price. I gave him a unit to test and will follow up with him again in a week. A proposal from Mercedes trucks was submitted to their headquarters for inclusion in the package items. Waiting for disposition on this proposal.

 

Al FUTTAIM MOTORS

Had a confirmed meeting with the CEO Len Hunt whom Graham and I spent time with at the auto show. Two hours before the meeting I had call from his office cancelling the meeting but putting me onto their Head of Multi brand services, Omar Edris. Graham will go over and see him with a unit to test. This is another one where we could be sold in the after sales packages. I will follow up with him after he's had a chance to test the unit, give feedback, and provide some proposal options. We will get next steps within a week.

 

WEHBE INSURANCE

I met with Omar Wehbe who runs one of the 3 top Insurance companies in the Gulf Region. We reviewed Bsafe and Fleetsafer, He saw multiple benefits for Insurance companies but also has good relationships with other Fleet and auto companies. He wanted some time to think about how best to use the technology. He said the best thing to would be for me to let him know next time I'm out and he would arrange further meetings/ intros as well as propose what he would do with Bsafe. Meeting with them again end of March

 

OTHER ACTIVITY

Graham and I are also working on:

- UBER Middles East- Waiting for outcome of Meeting with S. Berman and Global safety team based in NYC. Uber Middle east would like to proceed. Uber Middle East is still waiting for Green light from US to proceed . Uber NY has product waiting for a test result

- Dubai Police (Colonel Al Masri)

- KIA Motors Middle East

- Volkswagen Middle east

- CAREEM Middles East (Uber equivalent)

- Al Tayer Motors

- Juma Al Madjid Group (Hyundai)

- Sheikh Saif's office in Abu Dhabi (Antoine)- potential Master dealership

- SAPTCO Bus company Saudi

- Al Naghi Group (bus/ trucks) Saudi

- Tamimi Transportation- Saudi.

All the Saudi activity has been on all hold with all the Big players in detention. Saudi starting to open up again. Graham will be going in the next 2 weeks to start speaking with potential customers.

 

UK

We are working with consulting/ distribution agent Mr. Gordon Poots who is based in Belfast, Ireland. He has very good relationships throughout the auto and tech industry in the UK.

He has sent brochures and following up with the companies listed below

-          Vendigital automotive technology distributor

-          SFU- major Fleet Company- 6000 + cars/vans

-          SLOANS- major Fleet company- 8000 + cars, minibuses and Vans

-          Addison Lee- Major Fleet company- 12000 Vehicles

-          OH Vehicle Conversion company- Upgrading/modernizing classic and contemporary cars through the UK.

Meetings set up over the next 2 weeks

 

TURKEY

We are working with a new agent in Turkey Mr. Murat Kortan. He is owner and principle of Kortan Consulting. The company identifies new products and services into the Turkish market primarily in the Insurance, Dealer distributor/Agency business and new technology distribution.

Have had 3 conference calls with him including one this morning. He has all the brochures and is sending them out to his contacts and following up. Next step is to arrange a call this week to review questions and discuss commercial terms for the Turkish market. Turkey is 80 million people and Murat feels this could be taken up by at least 500,000 to 1 million users.

I met Murat in Istanbul this past Monday and met with one insurance company, Ak Sigorta. Feedback was positive. But Murat will need to translate the brochure and materials into Turkish as the level of English is not that good. We are having a call tomorrow (11th) to discuss next steps with Ak Sigorta and other potential clients.

 

SERBIA

Bsafe technology has been presented to senior government officials who seem interested in potentially legislating the mandatory use of this technology in the country.

In the meantime the Government has made introductions to the top 2 Insurance companies in the country. They are TRIGLAV Insurance Run by Dr. Dragan Markovic and AMS Insurance run by Mr. Dejan Jevtic. Between the 2 companies they provide coverage for 83% of all Fleet, Taxi companies, Buses, and delivery services companies in Serbia. They both have units after testing will follow up in the next 2 to 3 weeks.

 

BULGARIA

We have recently found a very good consulting agent Mr. Rossen Tzvetkov. Bulgaria is part of the EU and needs to comply with the EU regulations for distracted driving. I sent Rossen some units and he is testing now. He feels it is a very good idea and that over time the country will need to comply with these laws. So he is already speaking to some insurance agencies, Fleet companies and the Police to help support the effort. He will get back to me with Feedback in the next couple of weeks.

I will get an update next week

 

ADDITIONAL ITEMS

 

COGOSENSE

 

We are working with the Cogosense team to finish our new apps and develop new apps. I will be in Vancouver within the next 2 weeks to meet with the development team to discuss integration.

I have met with our funder and we should be closing this acquisition by the end of April. Our new mold will be able to create between 50,000 and 75,000 units at a significant discount to what we currently pay for product and all those savings go right to the bottom line.

#PROFITSINCREASE

 

3A10

The 3A10 is 99.9 percent done and will be completed shortly. We were able to write off over 1.8 million of old debt that was choking us monthly. We are done with that debt and are moving forward to complete and reduce all old debt and we will do this shortly.

I will be sending out another update next week and will include Cannabis, Colorado Dental and other opportunities on our plate.

Overall, the state of the company is in great shape. We continue to grow at a rapid pace and are extending our operations into new and untapped markets.

We have come a very long way in 2 short years and I expect to grow this company and expand into new markets every quarter. #REVENUERULES $ONCI

 

About On4 Communications 

On4 is a holdings company with an aggressive focus of acquiring proven and profitable businesses. Our first project is focusing on businesses operating in the $1.7 trillion U.S. healthcare industry. Our newest targeted businesses are operating in the trillion-dollar mobile App space. Our first acquisition in the mobile App space is FMS Marketing a global creator and distributor of mobile Apps for Android and Iphones. We are also targeting businesses to acquire and joint venture with in the medical marijuana and emerging MJ ancillary products space. 

Forward-Looking 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, as amended. All statements regarding our expected future financial position, results of operations, cash flows, financing plans, business strategy, products and services, competitive positions, growth opportunities, plans and objectives of management for future operations, as well as statements that include words such as "anticipate," "if," "believe," "plan," "estimate," "expect," "intend," "may," "could," "should," "will," and other similar expressions are forward-looking statements. All forward-looking statements involve risks, uncertainties and contingencies, many of which are beyond our control, which may cause actual results, performance, or achievements, as described in our reports filed with the Securities and Exchange Commission which are available for review at www.sec.gov, to differ materially from anticipated results, performance, or achievements. We are under no obligation to (and expressly disclaim any such obligation to) update or alter our forward-looking statements, whether as a result of new information, future events or otherwise.

 

Steve Berman CEO 

On4Company@gmail.com 

(323) 487-0389