NORTH VERNON, Ind., Aug. 24, 2018 (GLOBE NEWSWIRE) -- WindStream Technologies, Inc. - Update letter to Shareholders of recent events.
Dear WindStream Shareholders,
Thank you for your support of WindStream and the patience you have shown through these past couple of years.
I would like to address some of the issues that face the Company as well as some questions posed by shareholders:
- The Company is currently working on a plan to bring its SEC filings up to date but as of this writing there is no timeline yet set for the completion and filing of these documents. This will require capital, which the Company is working to raise. If the Company is successful in raising the necessary capital, we will instruct our auditors and legal team to complete the needed work.
- WindStream is in the final phase of completing a license agreement with ImpactPPA Limited, which will provide ImpactPPA with certain rights to the WindStream products. ImpactPPA would then purchase products from WindStream, which is designed to drive revenue for WSTI and potentially be another avenue of funding to support completion of the late SEC filings. As there are related parties between ImpactPPA and WindStream, the license agreement negotiations are in the hands of disinterested directors and officers. The projects that ImpactPPA has identified are significant in size and are targeted to help WindStream through this current phase of restructuring.
- One area of focus for WindStream management over the past 2 years has been to restructure a good portion of its debt and I am pleased to say that we have reduced the amount of debt considerably. The terms and conditions of the debt restructuring will be disclosed in the filings when they are available. The Company continues to carry Convertible Debt on its balance sheet, which has not changed materially from its last SEC filings.
- Filing of a Form 15-12G: Some shareholders have suggested that the Company voluntarily delist and deregister its common stock by filing a Form 15-12G. The Company is not eligible to file this form.
- The Company has recently moved out of its facilities on Buckeye Street to a more modestly priced factory in the North Vernon area.
- WindStream India is moving forward but to some degree is limited by the status of the U.S. parent company. We expect that any improvement in the Company’s US operations, will advance the India operations.
- WindStream India’s equity has changed since the Company’s last SEC filing disclosure due to the default of another shareholder in WindStream India, resulting in the Company now owning a greater percentage of WindStream India (approximately 80%).
The process of restructuring WindStream and its subsidiary will not be easy nor quick. There is much work to be done and capital needed to insure that the process goes smoothly. I, and the team, are committed to seeing this through and to the success of the Company.
I thank you all for your continued support and patience.
With great appreciation,
President and CEO
WindStream Technologies, Inc.
Safe Harbor Statement under the Private Securities Litigation Reform Act of 1995: Certain statements in this press release constitute forward-looking statements for purposes of the safe harbor provisions under The Private Securities Litigation Reform Act of 1995. We have based these forward-looking statements largely on our current expectations and projections about future events and financial trends that we believe may affect our financial condition, results of operations, business strategy and financial needs but they involve risks and uncertainties that could cause actual results to differ materially from those in the forward-looking statements, such as business and political conditions in the geographic areas in which we sell our products; weather and natural disasters; changing interpretations of generally accepted accounting principles; outcomes of government reviews; inquiries and investigations and related litigation; continued compliance with government regulations; legislation or regulatory environments, requirements or changes adversely affecting the businesses in which we are engaged.
The information set forth herein should be read in light of such risks. You are urged to consider these factors carefully in evaluating the forward-looking statements herein and are cautioned not to place undue reliance on such forward-looking statements, which are qualified in their entirety by this cautionary statement. The forward-looking statements made herein speak only as of the date of this press release and the Company undertakes no duty to update any forward-looking statement to conform the statement to actual results or changes in the Company’s expectations.