Mr. Clayton Moore reports
NETCENTS TECHNOLOGY ISSUES CEO LETTER TO SHAREHOLDERS
NetCents Technology Inc. has issued a letter to shareholders from its chief executive officer, Clayton Moore.
Dear fellow shareholders,
Today, I am pleased to provide you with our view on the cryptocurrency sector which has seen a rebound as well as to highlight a few of the key strategic successes that has enabled NetCents to continue be a leader in the market.
Over the last few years, the cryptocurrency market has gone through its ups and downs and some would say even profound changes. In late 2017 and early 2018, investors and retail banks were heavily investing into the crypto space and in many instances their decisions were based on hype alone. The adoption of regulations in the crypto sector and normal market maturation all worked in concert to create a bear market and a prolonged crypto winter. No one predicted the cryptocurrency sector would go through such a large correction nor as rapidly as it did.
We have consistently aligned ourselves with key people and companies in the payment and crypto sectors while always maintaining a plan B in our back pocket. This approach has allowed the company to keep moving forward through some very challenging times.
There is every indication the crypto winter is in indeed thawing. Aside from the price appreciation of Bitcoin which has rebounded from a low of approximately $3,200 (U.S.) in early December to where it is today hovering around the $5,300 (U.S.) mark, the future for cryptocurrencies as a viable mainstream payment option looks very promising. Amazon and PayPal are both now seriously looking at accepting crypto currency and for either of these two entities to do so, will greatly influence the overall acceptance and usage.
The questions which I am asked most often by investors, shareholders and other stakeholders are in regard to share structure, access to growth capital and revenues.
To date, the company has approximately 56 million shares issued and outstanding on a fully diluted basis, which, when compared with other participants in the crypto sector is often less than half. Regarding the issuance of stock options, I would like to mention that we seek to incentivize valued employees currently working hard to bring success to NetCents, aligning their incentives with our shareholders. It is precisely this structure and approach which allows the company to raise capital quickly from key strategic investors as needed, often within days.
The challenge which was before the company was to introduce a brand-new product into the marketplace, as well as a complete overhaul of how payments are conducted and perceived. We are validating the use of cryptocurrency by working with, not against, existing payment infrastructures and legacy platforms by embedding our technology within the traditional payments space and distribution channels with independent sales organizations (ISOs), payment gateways, independent software vendors (ISVs) and technology companies who work with merchants on a day-to-day basis and who intimately understand the requirements.
We identified the quickest way to market and to mass adoption was to have NetCents as the underlying technology that powers all cryptocurrency transactions. We have purposefully aligned ourselves with those payment partners who understand that cryptocurrency is coming and want to integrate a crypto solution into their existing processes and technology, so the transition from traditional payments to cryptocurrency payments is as seamless as possible.
The company has never been an advocate or followed the build and they will come approach to development which in the long run will have a significant detrimental impact on share price and dilution. Our focus is and always will be building and validating our technology as measured against market adoption. With this phase of development successfully completed, the company has transitioned to a sales cycle in full force where the company is working with all of our partners to begin the merchant adoption phase.
We have successfully signed new merchants, increased transaction volume, on-boarded new partners and developed new key banking relationships. To date, the company has signed over 20 major ISO and technology partner agreements. Through these long-term contracts and technology integrations, we now have direct access to millions of merchants, thousands of ISOs, millions of users and a sales force of hundreds of sales agents actively selling NetCents to their merchant and user bases.
We are launching our credit card program, one of our largest projects to date, and have been working diligently on the launch and are excited to share more on that with everyone soon.
We are now poised to take the company to the next level. We have spent the last six weeks in New York and San Francisco meeting with potential strategic partners for this next big step as well as meeting potential new board members who will be able to open new doors for the company.
Choosing to work with a few select long-term cornerstone investors on a consistent basis from the beginning has proven to be the right approach. Dilution has been minimized and it has given the company the ability to overcome trying market conditions while providing time to validate the system through some of the largest ISOs, processing and gateway companies in the world. The integration and on boarding of merchants continue and the user base has increased. This approach has provided us the time needed to find the right strategic investors for our company, money that understands the digital world, payment processing and the real transactional value of cryptocurrency.
Over the last 12-plus months the company focus has been on the development of the processing platform with the objective being to create a seamless and intuitive user experience for the buying, selling and transacting with cryptocurrencies. On the merchant side, the goal was to create the necessary merchant access points and distributions channels by developing APIs, software-as-a-service platforms and working with a select few POS to embed the NetCents software into their terminals. With this process successfully completed the focus for 2019/2020 will be to develop new sales channels, increase merchant acquisition and retention, activate and increase partner program, and grow sales and transactions to drive top-line revenue.
One thing is clear to us: the beginning of mass adoption of cryptocurrency is now.
We are excited and encouraged by the opportunities ahead of us and look forward to implementing our strategic plan, with the support of our loyal shareholders.
Clayton Moore, founder and CEO
About NetCents Technology Inc.
NetCents Technology, the transactional hub for all cryptocurrency payments, equips forward-thinking businesses with the technology to seamlessly integrate cryptocurrency processing into their payment model without taking on the risk or volatility of the crypto market. NetCents Technology is registered as a money services business (MSB) with FINTRAC.
We seek Safe Harbor.
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