Dutch Gold Updates Shareholders - Sets Forth Goals for Second Quarter 2014
April 04 2014 - 8:50AM
Access Wire
ATLANTA, GA / ACCESSWIRE / April 4, 2014 / Dutch Gold Resources,
Inc. (DGRI.OTC) (the “Company”) (http://dutchgoldinc.com/) today
announced that it has filed an 8K containing a Letter to
Shareholders, the substance of which follows.
To our Shareholders:
The last six weeks have been active and productive for your
Company. During this time, we have repositioned DGRI for growth
into an exciting market sector. We have begun to build
relationships that will deliver world-class technology to serve our
new direction. At this point, it is appropriate to evaluate the
challenges and opportunities for this second quarter of 2014.
What are our goals for the Quarter?
We must address some of the technical issues surrounding our
capital structure this quarter. We are committed to becoming a
current filer with the Securities and Exchange Commission this
quarter. Regardless of how well our business grows, we recognize
that serious investors insist on compliance and transparency. In
addition, we are cognizant of the fact that our DTCC “chill” must
be addressed. We have retained Capitol Law Group, LLP to resolve
this matter with both the DTCC and the SEC, if required. WE cannot
predict when the matter will be resolved, but we know that we have
begun to exert significant energy toward this end. In order for us
to resolve the DTCC matter, the Company must be a current filer so
addressing these issues in tandem makes common sense. Additionally,
we do not anticipate making any radical changes to our capital
structure during this period of review. As such, there are no
immediate plans to reverse split the common stock, which is a
question that has been posed to management by many shareholders.
From a practical standpoint, companies that initiate a reverse
stock split without any compelling business reason to do so never
fool anyone. Management believes that reverse stock splits make
sense when a company has real intrinsic value, i.e. revenue, cash
flow, earnings and the ability to up-list to an exchange. During a
period of rebuilding relationships with regulators and investors,
both want transparency and honest progress, not artificial attempts
to raise a share price. We believe that our investors are best
served when the Company is successful at increasing liquidity
through real progress in revenue/earnings, transparency through
current filings and being able to settle our trades electronically.
Management is focused on all three issues.
Why we focus on the financial services sector for
MMJ?
According to IBISWorld, the market for Prepaid Debit Cards is
expected to grow at a 24% rate through 2017. The demographics for
the MMJ sector are well suited for significant growth. The Merchant
Services business is generally a mature business, except in the MMJ
segment and other high-risk retailers such as e-commerce platforms
and collection agencies. We believe that the combination of
world-class technology pointed at this high-risk market segment
provides the potential for rapid growth and capital efficiency.
How does DGRI expect
to grow?
We have established product offering in the merchant services
and business services arenas for the MMJ sector. During the
quarter, we intend to offer these services through aggressive
marketing campaigns into the MMJ sector. Additionally, the Company
has begun to identify potential acquisition targets. We evaluate
these targets based on their technology, their customer
relationships, and their management. Through acquisitions, we seek
to build our revenue, our product portfolio, our customer base, and
to add skilled industry experts to our management team. Our
shareholders should look to management to provide growth
organically, and through acquisitions during the coming
quarter.
What else is on the agenda for the Quarter?
We intend to move aggressively to eliminate debt and to clean up
our balance sheet. As we focus on the future, we are mindful that
our painful experiences of the mining industry must be addressed.
We intend to mitigate as much debt as possible and to can move
forward without the baggage of a failed business model as possible.
On a separate front, we intend to build a management team that can
support and direct the new vision of the Company. We will also look
to build out a new Board of Directors to provide direction and
stability for the years ahead.
One Final Note… I would like to give a word of
thanks to all of our shareholders who have embraced this new
direction for the Company. Your enthusiastic support is welcomed
and appreciated, as are your questions, suggestions, and
participation in the growth of this Company.
How do we find out more?
Please visit our new website at http://www.dutchgoldinc.com/.
Sincerely,
DUTCH GOLD RESOURCES, INC.
Dan Hollis
Daniel Hollis, CEO
Forward-Looking Statements
This press release contains forward-looking statements that reflect
the Company's current expectation regarding future events. Actual
events could differ materially and substantially from those
projected herein and depend on a number of factors. Certain
statements in this release, and other written or oral statements
made by Dutch Gold Resources, Inc. are "forward-looking statements"
within the meaning of Section 27A of the Securities Act of 1933 and
Section 21E of the Securities Exchange Act of 1934. You should not
place undue reliance on forward-looking statements since they
involve known and unknown risks, uncertainties and other factors,
which are, in some cases, beyond the Company's control and which
could, and likely will, materially affect actual results, levels of
activity, performance or achievements. The Company assumes no
obligation to publicly update or revise these forward-looking
statements for any reason, or to update the reasons actual results
could differ materially from those anticipated in these
forward-looking statements, even if new information becomes
available in the future. Important factors that could cause actual
results to differ materially from the company's expectations
include, but are not limited to, those factors that are disclosed
under the heading "Risk Factors" and elsewhere in documents filed
by the company from time to time with the United States Securities
and Exchange Commission and other regulatory authorities.
For further information, please see http://www.dutchgoldinc.com/
or please contact Daniel Hollis, CEO of Dutch Gold Resources, Inc.
at 404-981-7424.
Source: Dutch Gold Resources, Inc.