General Statement to Shareholders From the Lecere CEO
Software startup Lecere Corporation (Pink Sheets:LCRE)
(www.lecere.com) would like to issue a general statement to
investors from the CEO, Jim Morris.
"Lecere Corporation is a technology startup company. Our goal is
to build a very large company over the next several years. Our
dreams are no different from the dreams that Steve Jobs, Bill
Gates, and Larry Ellison had long ago.
"Lecere came into existence a little over a year ago in a
merger/acquisition with Full Circle Image. Unfortunately, our plans
for raising immediate and significant investment capital foundered
in the waters of the economic meltdown.
"We persisted, however, and in about August of 2009 we began to
raise Rule 504 investment capital. That investment capital has been
injected into the company in relatively small tranches. The amount
of operating cash we receive in each tranche and the share price at
which we sell free trading stock are directly dependent on our
street price for the last five trading days.
"The financial information (balance sheets and income
statements) inherited from Full Circle Image was not in good
condition. It would have been expensive to bring that financial
information up to date. We elected instead to spend the small
amount of operating cash we were able to raise on software
development and marketing/sales. But after the recent dramatic
increase in our sales volume, the folks at www.pinkotc.com took a
closer look at our disclosure statements and found them lacking in
financial information, i.e. up to date income statements and
balance sheets. In order to remove the caveat emptor, we must bring
our financial information up to date. That may take a few weeks,
and it will be expensive.
"We have always been careful to disclose that Lecere has had no
revenue and no customers up to this point in time. Google,
Microsoft, Oracle, and every other technology startup has been in a
similar situation to that which Lecere finds itself in today. It is
normal and expected for a startup technology company.
"Rome was not built in a day, and Lecere will not become a great
company in the next few weeks or even months. This is typical of
technology startup companies. It is impossible to ramp up revenues
from nothing to millions of dollars per year in a few months. We at
Lecere would like to counsel patience on the part of investors.
"On May 3, we started a pilot project at our first customer site
in Portland, Oregon. We have budgeted about a month to get the
software operational and working to the satisfaction of ourselves
and the customer. It is critical that we build a good foundation
for our software at a relatively small, friendly customer site. We
must take it slow and make sure we get it right. Again, we would
counsel patience on the part of investors with regard to our
software development process. We have done this many times before
in other startup companies, and we know exactly how to develop a
world-class product, launch it, support it, and improve it.
"Lecere did two Rule 504 investments in the last 2-3 weeks that
raised the number of floating shares by approximately 1.2 billion
shares. Every time Lecere does a Rule 504 investment, the company
files a Form D on Edgar. Shareholders can review those Form D
documents by going to the Edgar website. The Form D documents
designate how much money was raised in each Rule 504 tranche, but
does not designate how many shares were sold.
"The management of Lecere holds a large number of restricted
shares, but management has no intention of lifting restrictions and
then selling the shares for a very long time, likely a year or
more. Even when management does eventually sell shares in the
distant future, we will be restricted by Rule 144 in the number of
shares we can sell each quarter. Management of Lecere all believe
that Lecere could achieve a market cap of as much as $1 billion in
the next 4-7 years. Management is in Lecere for the long haul, and
we are looking for investors who will support Lecere for the long
"There have been no lifting of share restrictions in the last
few months, and we don't intend to lift any restrictions in the
next several months. The only activity that will increase the
number of free trading shares in the next several months is Rule
504 investments, which we will continue to do in order to raise
required operating cash. The good news is that with the recent
increase in our stock price, dilution from Rule 504 investments
will be significantly less than it has been in the past few months.
If Lecere could raise operating cash by selling restricted stock in
a private placement, that would be our first choice for raising
investment capital, but we have been unable to raise significant
operating cash by selling restricted stock.
"Even if Lecere's outstanding share count does reach as much as
25 billion shares in the future, a Lecere market cap of $1 billion
would result in a share price of $0.04 per share. For those who
invested at $0.0004, this represents a 100 to 1 return on their
investment in, hopefully, 4-7 years. Of course, we can't guarantee
this will happen, but if it does that's a pretty darn good return
on investment for long haul investors. Believe me, those are the
kind of prices that management will want to see before we start
selling significant amounts of Lecere stock in the future. We are
patient. I would counsel patience for investors.
"Lecere has a great opportunity in front of it. In fact,
management thinks Lecere has a chance to be one of those startups
that becomes a part of American technology industry legend. It's
going to be a fun ride."
Lecere Corporation (Pink Sheets:LCRE) of Portland, Oregon
develops and markets Lecere FIRMSTM, an integrated, Web-based suite
of interactive restaurant management software that runs on handheld
wireless devices. FIRMS helps restaurants reduce their
operational costs while enhancing their customers' experiences for
increased revenues and profits.
Lecere and FIRMS are trademarks of Lecere
Corporation. All other legal marks are the property of their
CONTACT: Lecere Corporation