New Global Energy, Inc. Letter to Shareholders
THERMAL, CA -- June 23, 2016 -- InvestorsHub NewsWire
-- Dear Shareholder: Looking forward, the key to New Global
Energy, Inc.s (OTCQB: NGEY) success will be our commitment to best
practices in the agriculture, aquaculture and health and wellness
industries. As always, we continue to seek new and innovative ways
to enhance our farming program so that we produce wholesome food
and nutritional products that resonate with todays trends in
healthy lifestyle choices and thereby enhance shareholder value.
This letter provides an update on Company developments and how they
project to impact revenue growth and profitability.
Our Tilapia are Huge
Tilapia season is in full swing and our market size tilapia now
weigh in at an average of 1.5 lbs. each. This impressive weight is
made possible by our farms warm climate, ample fresh water,
improved brood stock, and proprietary fish feeding methodology that
includes our fish being fed nutrient rich algae which is a primary
food source in their natural environment.
We believe that the size and color of our fish far surpass the
competition and we are proud to have a strong and steady supply of
approximately 4 million fish projected to produce an on-going
revenue stream. It is also interesting to note that because our
farms are located in California we enjoy a competitive advantage
since other seafood companies are forbidden by law from bringing
live tilapia into or out of the state.
We are pursuing our marketing program of delivering direct to
market which has the dual benefit of being able to absorb the
margin allocable to the fish broker and delivering direct also
allows us to amplify our brand message to our buyers of premium
quality and product purity.
To further expand our tilapia operation, we are investigating
ways to boost distribution such as a possible partnership with
Amazon Marketplace to provide market to market delivery.
We have learned that certain demographic markets prefer whole
fish versus filets and we will continue to take that into
consideration as we ramp up distribution. We remain committed to
becoming non-GMO certified, which is better for the land, the
environment, animals and people and which commands price premiums
and marketing benefits. We are presently pursuing the Certification
process.
We are extremely pleased that the Coachella Valley Water
District has approved the Thermal farm to receive canal water,
which comes from the rapidly flowing Colorado River and contains
more oxygen and minerals than well water. Construction of the new
extension should be commenced soon that will make it possible for
canal water to reach the Thermal farm; estimated completion of the
project is 2-3 years. The land value of the farm is expected to
significantly increase upon project completion.
The Moringa Superfood Opportunity
We recently announced a joint venture agreement with the worlds
largest Moringa farm located in Leon, Nicaragua, which is a
180-acre farm growing nutrient rich Moringa. We are preparing for
the launch of Moringa Reserve, LLC to develop, operate, distribute
and sell Moringa-based superfood products to U.S. retail markets.
Development of branding and packaging is underway.
This new partnership is exciting because it provides us with
enough Moringa to meet the demand of the orders that we anticipate
for future distribution. The Nicaragua farm utilizes the best
possible production methods and the owners have 20+ years of
Moringa experience that has resulted in high quality product. The
farms land is extremely fertile and from volcanic origin and the
fields are fertilized from compost made from the stems and trunks
of the Moringa tree. The Moringa is all natural and organically
grown without any chemicals.
In addition to retailing Moringa-based superfood products, we
believe that Moringa can generate several additional significant
revenue streams for the Company including Moringa based animal feed
products and Moringa oil to be sold to the cosmetics industry.
Stock Price Considerations
Several of our shareholders have expressed concern about the
price per share, which has fallen from recent highs. The Company
continues to expand and improve its operations and technology
providing what we believe is a strong base for significant growth.
We have had some administrative delays due to changes in accounting
treatments, which have been reflected, in our financial statements.
We are making efforts to continue to build our accounting resources
to help address the ever-increasing complexity of the SEC reporting
process.
A new $3.5 million 506c equity financing for New Global Energy
has just recently begun to be offered through our investment
banker. This $3.5 million cash infusion will support farm and
operational improvements, product development and market expansion
as well as provide additional working capital necessary to
aggressively pursue our business plan.
We remain confident that we will experience upward stock
appreciation as the public continues to understand and follow New
Global Energy.
For additional details, please follow our filings and press
releases. We also send out a newsletter so include a mailing
address and an email on our website contact page at www.newglobalenergy.net and we will add you to the
distribution list.
Sincerely,
Perry D. West
Chief Executive Officer
CAUTIONARY NOTE REGARDING FORWARD-LOOKING STATEMENTS
This correspondence contains forward-looking statements. Any
statements about our expectations, beliefs, plans, predictions,
forecasts, objectives, assumptions or future events or performance
are not historical facts and may be forward-looking. These
statements are often, but not always, made through the use of words
or phrases such as "anticipate," "believes," "can," "could," "may,"
"predicts," "potential," "should," "will," "estimate," "plans,"
"projects," "continuing," "ongoing," "expects," "intends" and
similar words or phrases. Accordingly, these statements are only
predictions and involve estimates, known and unknown risks,
assumptions and uncertainties that could cause actual results to
differ materially from those expressed in them. Our actual results
could differ materially from those anticipated in such
forward-looking statements as a result of many factors.
SOURCE: New Global Energy, Inc.