St. Petersburg, FL, Nov. 4, 2013 (GLOBE NEWSWIRE) -- Infrax Systems, Inc., (OTC.BB: IFXY), a global provider of Smart
Grid-related products and services for the Energy and Utility
industries, today issued the following letter to its shareholders
from our Chairman & Acting CEO Sam Talari:
Dear Fellow Shareholders,
This year I would like to approach the shareholder update
differently and provide the opportunity for our active shareholders
to ask questions to establish an ongoing platform for an active
dialogue. I have attempted to form this shareholder update as
answers to our shareholder's questions, covering both their
concerns and the Company's future. We are also working to create a
solid Investor Relations platform which will evolve and surpass our
current platform as a vehicle to inform our shareholders, weekly or
monthly, through our Facebook account;
https://www.facebook.com/infraxsystems. We recommend all our
shareholders to "like" our Facebook page to receive the most
current information on the Company.
I have selected six questions that I see as having the most
relevance with the Company, our shareholders and our future. The
questions will be answered in two parts, in two letters. The
following is Part I of the Q&A;
Q1- When will we see a significant improvement in revenues?
I chose this question because it encapsulates several of the
other important inquiries made by our shareholders. As you may
know, products are causative not revenue; at least not initially.
To cause revenue to increase or improve we had to work on our
understanding of the market hence building products fitting the
market needs. Today, the utilities around the globe are looking to
build an end-to-end digital grid system that lays the ground work
for energy evolution where information and automation intersects
creating energy efficiencies and customer satisfaction.
To that mark, we have spent four years and millions of dollars
in R&D investment to come up with a technology platform called
the "SNIC", which we believe, will complement the ongoing evolution
in what is called "Smart Grid II" (when billions of devices
connected together providing essential information on their
environment). Regarding the increase in revenue, we only have two
more milestones to achieve; Certification and Production. The
certification process usually takes between 4 to 12 weeks.
Production level will depend on demand.
While in the certification process, we have been narrowing a
list of potential customers for Pilot projects and have been making
inroads in the United States, as well as countries such as China
and India (2.5B people & 1B meters) where the largest
implementation of the smart metering will ensue in the next 10
years. As the evolution of our competitors has shown, growing
from "near zero" in revenue to "hundreds of millions of dollars" in
only a short few years may not be out of reach. Hence, in 2014, we
will rev things up from near zero point to what our hard work and
funding would allow. With close to $3 trillion at stake in the next
20 years, we are standing at the right junction in the history of
our company and our industry. I will discuss our revenue path in
more detail in the second part of the Open Letter.
Q2- What is the status on the Lockwood dividend and the
lawsuit?
As you may recall, we had announced the spin off our 70% of
interest in Lockwood Technology New Hampshire (LTCNH) to our
shareholders in 2012. However, since NH corporate law does not
allow re-domiciliation of its corporate entities, we were forced to
incorporate another company in Nevada called Lockwood Technology
Nevada (LTCNV) for the purpose of re-domiciliation of LTCNH in the
State of Nevada through a merger.
Also the spin off consideration did not foresee the imminent
lawsuit against the previous owners of Lockwood few months later.
Hence due to the legal concerns, we elected to delay the
re-domiciliation and the spin off until such time the lawsuit was
concluded. Due to several recent developments, we have decided to
accelerate the pace again and bypass the re-domiciliation and the
merger with LTCNV, at least for now. The dividend rate and all
previous information relayed to the spin off still stands. We are
in the process of informing FINRA of the spin off and we will
inform you when approved.
On the lawsuit front, due to the recent events and court
hearings, we are more ever so confident that we will succeed and
collect the requested judgment for damages caused by the
defendants. We are set for a jury trial in mid-2014. We will inform
our shareholders on any other major developments through our
Facebook page as soon as we have it.
Q3- What is the status of the preferred shares
dividend?
As it was announced on our Facebook (infraxsystems), and on our
previous PR, we've contemplated ways to reward our shareholders for
their patience and trust, especially those that have supported us
for several years. We have also come to a conclusion that we need
to up-list to a different exchange in order to attract the proper
level of investment for our growth and liquidity for our
shareholders. It has become apparent that the preferred dividend
and the up-list are related to each other in many ways. We shall
address the connection and next steps in a subsequent
letter.
The preferred dividend was approved after lengthy discussion but
the timing has always been an issue considering the Lockwood
dividend. So we have decided to deal with the Lockwood dividend
first. The Preferred dividend is meant to solidify the Company's
relationship with its shareholders through a direct ownership and
interest in the Company. Currently we are discussing the process of
the preferred dividend and we will inform our shareholders when we
have enough clarity.
Thank you
Sam Talari
Acting CEO of Infrax Systems
About Infrax Systems
Infrax Systems offers a series of interrelated operational
management, communications, and grid security related products and
services known as Secure Intelligent Energy Platform (SIEP). Our
products enable a comprehensive and unified solution for
communications and applications management of the Smart Grid. SIEP™
incorporates a wide array of communications, security, device and
data management tools for Smart Grid applications such as advanced
metering solutions and grid optimization. SIEP platform creates a
unified solution to securely manage Advanced Metering
Infrastructure (AMI) and distribution automation. Infrax's secure
smart grid platform, incorporates a communications transport and
management system, (GridMesh™), device and data security
management, and ultimately secures intelligent endpoint devices
(SIED). The secure management of the "last mile" backhaul will be
necessary for utilities to implement Smart Grid applications
including AMI, real-time pricing, Demand Side Management (DSM),
Distribution Monitoring and Automation. When combined, these
applications can offer economic, operational and environmental
benefits for utilities, and ultimately the utility's customers.
For INFRAX Systems information, contact Investors@Infraxinc.com
or visit www.infraxinc.com.
Forward-Looking Statements
This press release may contain forward-looking statements
covered within the meaning of the Private Securities Litigation
Reform Act of 1995. These forward-looking statements relate to,
among other things, plans and timing for the introduction or
enhancement of our services and products, statements about future
market conditions, supply and demand conditions, and other
expectations, intentions and plans contained in this press release
that are not historical fact and involve risks and uncertainties.
Our expectations regarding future revenues depend upon our ability
to develop and supply products and services that we may not produce
today and that meet defined specifications. When used in this press
release, the words "plan," "expect," "believe," and similar
expressions generally identify forward-looking statements. These
statements reflect our current expectations. They are subject to a
number of risks and uncertainties, including, but not limited to,
changes in technology and changes in pervasive markets.
CONTACT: Media Contact:
Infrax Systems, Inc.
investors@infraxinc.com
727-498-8514
