Welcome to the Shareholder and Investor Blog for Alliance Creative Group, Inc.
The company Stock Symbol is ACGX and is traded on the OTC Markets (www.OTCmarkets.com)
The OTC Markets Group Inc. operates the world’s largest electronic interdealer quotation system for broker-dealers to trade unlisted securities. We organize the OTC marketplace into three tiers based on the level of disclosure companies choose to provide to investors: OTCQX, OTCQB and OTC Pink. ACGX is an OTC Pink company.
ACGX updates its financial information on the OTCmarkets.com website according to their disclosure requirements on a quarterly basis. The Company updates the company info section on the OTC markets more often as the Company makes any significant changes.
ACGX has updated the share structure information as of April 1, 2011.
The Outstanding Common Shares are 3,706,026 with a public float of 3,584,401.
The most recently uploaded financial reports for ACGX include the 4th Quarter and Annual 2010 Balance Sheet, Income Statement and Cash flows.
The key numbers for 2010 are:
The total revenue for 2010 was $11,393,213
The total gross profit for 2010 was $2,445,282
The total net income for 2010 was $805,632
The total assets as of 12/31/10 was $3,971,222
The full report can be viewed at
http://alliancecreativegroup.com/investor-relations or
http://www.otcmarkets.com/stock/ACGX/financials
As a public company the Alliance Creative Group must follow a number of regulations according to FINRA and the SEC so any information shared by the company must be shared with the entire public to avoid any selective disclosure or insider info violations. That is why the company does not allow random people the opportunity to randomly call the transfer agent directly to find out any specific information that is not available to the public and informs the public through the proper legal public methods.
In an effort to clear up any confusion we have set up this shareholder and investor blog to answer questions and share additional information with the public.
If anyone has a specific comment or question – please email us directly at Paul@ImageEmail.com. Make sure to include your full name and contact information along with your comment or question in case we need to get in touch with you to clarify your questions. We will then post the appropriate questions and comments along with the answers or company reply to help clear up any confusion.
We are working on improving our communication with our shareholders so it is very important we know who we are communicating with and what their concerns are so we can address it properly.
The following are some questions that have been emailed to us:
Q: What are your main products, services and current projects?
A: The Company is currently a printing, packaging, product development, management, marketing and consulting company. The key services include creative and design, printing and packaging, product development, project management, event marketing, business consulting and strategic marketing. The main divisions and projects include: St. Louis Packaging, STL Graphics, Snap Graphics, TicketHotlink and IMAGE Chicago.
We offer graphic design services, all types of printing from business cards and banners to calendars and magazines. We offer all types of packaging from stock boxes and tape to custom packaging, bags and labels. We also offer inventory management services. Our product development division helps clients build brand equity and look for distribution channels. For IMAGE Chicago we stopped printing the actual magazine due to declining print ad revenues but we still focus on marketing and event promotion for clients. For tickethotlink we buy and sell tickets online for sporting events, concerts and theatre. For the other consulting and marketing services we have a few clients we work with on some misc projects. We have also just expanded our role with United Fuel Savers.
Q: What is the current status of your Clearwire relationship?
A: We signed an independent sales organization agreement to develop a sales team for the 4G Wimax product in Chicago in late 2009. We interviewed, trained and hired a number of sales reps. We were selling for them and closing deals and even ran the booth at the Chicago auto show for them for a couple days. Unfortunately their service was not as good as their marketing and they starting offering special promotions in mass retail to attract more users and compete with our sales people. When we addressed our issues with them they basically said they couldn’t offer us the same pricing and promotions for the end user as they could to the mass retail so we decided we couldn’t reasonably compete and ended our sales program.
Q: What is the current status of your Water Tower Surgery Center Agreement?
A: We entered into a joint venture agreement in 2009 to help manage and market the center, recruit new doctors and clients and increase the overall revenues and profits for the center. We handled a number of responsibilities and helped improve the centers numbers during our agreement. The center had a change of ownership and control and we eventually had to dissolve our joint venture.
Q: I noticed you signed a deal with United Fuel Savers over a year ago but you also just released a press release the other day announcing you completed a deal with them – What’s the difference between this deal and the old deal?
A: The original agreement we signed with United Fuel Savers was to help them build their brand identity and create awareness. We created their PowerPoint presentations, their marketing materials and their website along with all other creative and marketing support. With this new Agreement we actually acquired a piece of the company. We are now a minority equity partner that will receive a portion of the profits and equity of the company. We will still be helping with marketing but we are also going to take on other responsibilities. During the last couple of years United Fuel Savers has had a few different products from their patent and had to make a few adjustments. Like most new products you must continue to do research and development and improve your products as the technology improves that is why there was a time period where there was very little external activity was going on while the company was making internal changes. Recently Untied Fuel Savers acquired Go Green Hybrid Fuel Systems and they worked together to create a new and improved product using the patented Hydrogen Reaction Fluid. We are now actively marketing and selling the new product and have updated the website www.UnitedFuelSavers.com
Q: Why do you guys gag your TA?
A: Although we understand a number of companies allow shareholders direct access to their transfer agent we do not feel this action follows the SECs rules and have been advised by our SEC attorney to utilized the proper approved methods of disclosure. According to the SEC’s Selective Disclosure and Insider Trading Rules as per Regulation FD (Fair Disclosure) adopted August 15, 2000 and effective as of October 23, 2000 the regulation provides that an issuer, or person acting on its behalf (a Transfer Agent), can not disclose material nonpublic information to certain enumerated persons (in general, securities market professionals and holders of the issue securities who may well trade on the basis of the information), it is considered selective information and not allowed. To better understand this picture a random person calling the transfer agent and getting non-public information before anyone else that they use to make trades with an unfair advantage over other shareholders and traders. Saying everyone has the same access to call everyday is not the same as having access to public information that is why the OTCmarkets.com has an area for companies to update the information for the public to all see and avoid any unfair advantages. We update that information on a regular basis and maintain a fair disclosure for everyone. Some shareholders have called the transfer agent in the past and pretended to be management for the company to get this information to create an unfair advantage and unfortunately the transfer agent has leaked information in the past. The company has never allowed shareholders to receive share information directly and if anyone was able to obtain such information and posted it online they did not obtain that information properly and where not given access to inside information from the company. The company has never changed its position on this subject matter and will continue to follow the rules of the SEC related to this issue.
To give you an example we can all relate to – we all know a number of people speed everyday on highways all over this country but the law states an actual legal limit and although it’s not always enforced that is the law and people are in violation weather they are caught or not. The same is true here – the SEC has a speed limit in the Selective Disclosure and Insider Trading Rules as per Regulation FD (Fair Disclosure) and as more people get hurt from insider info we think more companies will start paying more attention to this rule they have been over looking.
Q: When I buy shares of your company where does that money go and what do you use it for?
A: When you buy shares on the open market you are not buying them from the company and the company is not receiving anything from your purchase. When you buy a share of stock your broker is buying it from another broker who has a client (another shareholder) that is willing to sell it you. The other shareholder is getting your money not the company.
Q: Why do you continue to dilute the shares of the company? You seem have a solid company so why dilute the shares and hurt us shareholders?
A: We don’t dilute to hurt the shareholders and we have actually chosen the method that hurts the shareholders the least. The company could raise capital by using the rule 504 exemption like many other OTC companies have and do but that exemption allows companies to issue discounted shares immediately to a select group of investors that usually sell their shares right away and hurt the company and the shareholders. Instead of this immediate dilution which can completely kill a company we have decided to protect our shareholders the best we can therefore, we have opted to issue convertible notes to investors that want to invest in the company directly. Then instead of giving the investors shares immediately we make them wait 1 full year during the restricted time period to protect our shareholders from “dumping”. After the investor waits the full 1 year they are able to convert their notes into shares and then it is up to them if they want to hold or sell some or all of those shares. We have continued to encourage investors to wait and hold for as long as possible to protect the share value but it is ultimately their decision when to convert and when to sell their shares. However, I can say in general no investor wants to wait a full year and then “dump” their shares and lose money if the share price goes down while they are selling. They usually wait and sell their shares slowly to avoid any major selling. So when you see any major selling going on it has absolutely nothing to do with the company and it probably doesn’t even have to do with our investors. It is probably just random market makers doing what they do and looking for opportunities.
Q: Why did you reverse the stock? How much did the company make from it and how much did Paul Sorkin personally make from taking this action? And how many times has the current management reversed this stock?
A: The company and Paul did not make a penny off the reverse. It actually cost the company money to execute the reverse and there is no financial gain for either the company or Paul from this action. A reverse is not something the company usually wants to do it is usually the lesser of 2 evils. Paul became the CEO in June of 2008 and this is the 1st and only reverse Paul has performed with this company during his almost 3 years with the company. Everyone (but shorters) benefit when the stock goes up. The company wants the stock price to go up for multiple reasons. Unfortunately, there are times when the company is stuck in a constant fight between the market markets and short sellers and once you get cellar boxed in at .0001 there’s not a lot you can do. We tried everything we could to fight back but after evaluating all of options we believed the reverse was the best option to give us all a chance to position ourselves for future growth and hopefully long-term shareholder value. It is not something the company enters into quickly or takes lightly but it is an action that some companies have to take to avoid even more harmful potential actions.
We are going to continue to add to this blog so if anyone has additional specific comment or question – please email us directly at Paul@ImageEmail.com. Make sure to include your full name and contact information along with your comment or question in case we need to get in touch with you to clarify your questions. We will then post the appropriate questions and comments along with the answers or company reply to help clear up any confusion.
IMPORTANT REMINDER – We encourage people to make their own opinions based on unbiased facts. We understand those opinions may be positive or negative about the company or the management but we want them to be based on documented facts and not false statements posted online. It is important for people to realize that any information the company releases is monitored and governed by the laws of the SEC and FINRA and include substantial punishments for false information. All information released by the company has to be based on fact and backed up by proper documentation given to the SEC and FINRA upon request while information posted online by others is their opinion and does not need to be verified or confirmed by any source. Our recommendation regarding information related to the Company coming from sources other than the Company is to ask the source to identify themselves, including their credentials and contact information, and request third party verified documentation related to their claims in any of their statements before making your own opinion. We also recommend that people share this third party information with the company so we can help clear up any confusion.
FORWARD LOOKING STATEMENTS
Some of the information in this blog may contain forward-looking statements as defined by the Private Securities Litigation Reform Act of 1995. Forward-looking statements include statements concerning plan, objectives, goals, strategies, future events or performance, and underlying assumptions and other statements that are other than statements of historical facts. These statements are subject to uncertainties and risks including, but not limited to, the volatility of the market price of our common stock, our inability to predict the effects of our reverse stock split on the effect of our stock market price, our business plans, the strategies that we use to develop and evaluate opportunities, the extent of product and service demand and acceptance, changes in technology, economic conditions, the impact of competition and pricing, government regulation, and other risks described in statements filed from time to time with the Securities and Exchange Commission. All such forward-looking statements whether written or oral, and whether made by or on behalf of the Company, are expressly qualified by the cautionary statements that may accompany the forward-looking statements. In addition, the Company disclaims any obligation to update any forward-looking statements to reflect events or circumstances after the date hereof.