Dear Valued Shareholders,
Thank you for your ongoing support, I know it has been a very long time for some of you.
We are on the edge of completing some very important steps to solidify the company and make it profitable again. In order to achieve this, we need some more cash to pay for accountants, attorneys, filings, and various operational expenses that are now required to make this happen. I know it has not been long since I publicly said that the company doesn’t need to raise its authorized stock, but things have rapidly changed and we need to respond with decisive steps that will place the company in the best position to succeed. Therefore, we will be raising the authorized common stock from 2.85 billion to 3.85 billion, in order to meet our cash flow requirements over the short-term, until we can enjoy operational profits.
Having said that, it’s important to note that a big portion of this increase in the authorized stock will be held in reserve and used, only if necessary, as part of the strategic acquisition of profitable entities or for the exchange of services that would be extremely beneficial toward the growth of the company.
Also worthy of noting, we have only taken this step after having found support from some of our faithful investors that understand our view and are in it for the long-haul. Thanks to this we have avoided the need to take on any more convertible notes or other toxic financing that typically hurts current shareholders. Having explored all the options, this course of action is the best choice out there and in the interest of the company and its shareholders.
We don’t expect to need any further capitalization rounds in the near future, if at all, since we are now close to a point that revenues and profits will fund our operations from this point forward. We are grateful to our loyal shareholders for staying with us through the capitalization process. Between the deals we have in the works and the results we have already achieved–and expect to sustain well into the future–we hope issuing more stock will no longer be needed.
As an after thought, I would like to remind you that I have forgone my own salary while we are in this crucial rebuilding phase. In fact, I have been putting money into the company out of my own pocket in order to subsidize our efforts. That’s how much I believe in what we are doing.
I will be providing more specific operational information regarding our recently acquired invoice factoring company, Affiliated Funding Corp., and our intentions regarding the life settlement business, in the weeks to come.
/s/ Paul Norat
Chairman & CEO
Capital Financial Global, Inc.
About Capital Financial Global, Inc.
Capital Financial Global, Inc. (CFGX) is a specialty finance company that offers asset-backed financing and loan advisory services.
Our Market Positioning & Differentiation
Unlike traditional banking models, CFGX offers organizations needed liquidity by using an asset-backed approach rather than a traditional credit approach to originating new loans, buying and selling existing loans, and converting distressed collateral into cash or trade-able form.
Our Revenue Model
We seek revenue from loan fees, interest rate spreads on loans and investments we hold, and margins on loans and investments we sell in whole or in part to institutional investors, hedge funds, or other secondary market participants. We also seek revenue by charging loan servicing fees, and fees for other finance related consulting engagements.
Statements in this blog post or press release relating to plans, strategies, economic performance and trends, projections of results of specific activities or investments, and other statements that are not descriptions of historical facts may be forward-looking statements. Forward-looking information is inherently subject to risks and uncertainties, and actual results could differ materially from those currently anticipated due to a number of factors, which include but are not limited to, risk factors inherent in doing business. Forward-looking statements may be identified by terms such as “may,” “will,” “should,” “could,” “expects,” “plans,” “intends,” “anticipates,” “believes,” “estimates,” “predicts,” “forecasts,” “potential,” or “continue,” or similar terms or the negative of these terms. Although we believe that the expectations reflected in the forward-looking statements are reasonable, we cannot guarantee future results, levels of activity, performance or achievements. The company has no obligation to update these forward-looking statements.