Castellum, Inc. Provides Shareholders and Prospective Shareholders a Year-End Update
December 21 2022 - 06:55AM
Consistent with its requirements under Regulation FD,
Castellum, Inc. (NYSE-American: CTM) provides the following
information from CEO Mark Fuller for its shareholders, prospective
shareholders, and other stakeholders.
Dear Fellow Shareholders:
As we approach the end of 2022, I would like to
update you on recent developments at Castellum and provide a
roadmap for 2023.
Let me start by thanking you for your support of
CTM as a shareholder. The Board, management team, and I are all
excited by the progress Castellum has made in the 3 ½ years that we
have been running the company and are very mindful of the
collective fiduciary duty we owe to you as shareholders of our
company. We are proud to have taken a public company from zero
revenue to a $44.4 million run rate (as of last quarter) and from
operating losses to a recurring cash operating profit. We did that
by acquiring six businesses which help defend our country by
serving the Department of Defense (including Army, Navy, SOCOM, and
soon, with our recently announced new contract win, the Air Force)
as well as other parts of the United States government.
We focus on the digital battlefield in cyberspace:
cybersecurity, software engineering, data analytics, electronic
warfare, and information warfare, among other things. This digital
battlefield is active every day with cyberattacks from our
adversaries around the globe. We hire top talent to support our
mission of helping to protect Americans’ liberty and way of life.
Many of us in the company are veterans. I attended West Point and
then served for several years in Europe and Asia. Our COO, Glen
Ives, attended Annapolis and then flew Navy helicopters. Our board
has three prominent former general officers: Patricia Frost, Bernie
Champoux, and John Campbell. Each of them served with distinction.
We are proud of what we do and how we do it.
2023 looks like it will be another record year for
Castellum. We plan to close our recently announced $10 million
pending acquisition in the first quarter of the year, once we
complete our legal and financial due diligence and a 1-year audit
of the acquisition consistent with our accounting obligations under
PCAOB rules. We have ongoing conversations with other, larger
opportunities as well. We have multiple organic growth
opportunities available if Congress can move from continuing
resolution mode and pass a budget, which, as of this date, looks
possible this week. Our stated, aggressive, short-term goal is to
double our company’s size in 2023 and more than double our
recurring cash operating profit while keeping debt and share
issuance to a minimum so that our per share metrics (revenue per
share, recurring cash operating profit per share) increase. Our
ten-year goal is to build a $1 billion company which becomes a
leader in the digital battlefield space.
While our operations have had a very strong 2022,
and we believe will have an excellent 2023, our stock price has
not. As the second largest shareholder of our company, I am not
happy about this fact. Over the past 90 days, we have seen our
stock fall from over $4 per share (split adjusted) to under $1, a
more than 75% drop. Although we recovered above the $1 per share
level (back almost to $1.90), we recently dropped below that level
again. Especially surprising has been the decrease in price from
our underwritten public offering price of $2 per share. We had felt
that the $2 level, which was ratified by over 40 investors in our
$3 million offering and was not inconsistent with companies that we
consider comparable to Castellum, was setting a reasonable price
that would serve as the basis for trading on the NYSE-American. In
fact, since the offering, we have not yet traded at that level.
So, what are we doing to help the stock price?
First, we are continuing to focus on improving and growing our
operations. In the medium to long term, company performance drives
stock performance. Therefore, the best thing we can do is grow the
revenue and operating profit of the company and we focus on that
every day. Second, I and other member of the senior team, have made
open market purchases of CTM. We believe that current prices are
below not just our $2 offering price from October but other
measures of reasonable value for a company with our growth rate.
Third, I have engaged an Investor Relations firm and have had
numerous meetings with stockbrokers - and continue to schedule
additional meetings every week. These meetings are with
stockbrokers, retail investors, and others who purchase our stock
if they hear, understand, and like the Castellum story. The success
in this approach was evidenced by our stock recently moving as high
as $1.89 per share on good volume. Fourth, I am working on
finalizing an employee stock purchase plan for our Castellum
employees to be able to purchase CTM stock. Finally, we are
beginning a program to reach out to you and our other shareholders
to increase information flow and make sure that you have good
visibility into your company. The good news is that just a small
increase in buying for our stock could cause our stock price to
reverse its recent drop and move back higher. Given the significant
volume of trading since our offering on October 13, we believe that
anyone who wanted to sell has had their chance to sell.
Now it is time for us as shareholders to reassert
control of our destiny as a company. I welcome your support and
encourage you to follow my example by buying a bigger stake in CTM.
Working together we will have a bigger, stronger, more valuable
Thank you for your support and warm regards for a
Happy Holiday Season,
Mark Fuller, President & CEO
About Castellum, Inc.:
Castellum, Inc. (NYSE-American: CTM) is a
defense-oriented technology company which is executing strategic
acquisitions in the cyber security, information technology and
software, information warfare, and electronic warfare and
engineering services space - http://castellumus.com/.
Statements: This release contains 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 forward-looking statements are inherently
uncertain, based on current expectations and assumptions
concerning future events or future performance of the company.
Readers are cautioned not to place undue reliance on these
forward-looking statements, which are only predictions and speak
only as of the date hereof. In evaluating such statements,
prospective investors should review carefully various risks and
uncertainties identified in this release and matters disclosed at
www.otcmarkets.com. These risks and uncertainties could cause the
company's actual results to differ materially from those indicated
in the forward-looking statements.
Contact: Mark Fuller, CEO
A photo accompanying this announcement is available at
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