Dear Shareholders: September 4, 2012 (REV 9/18/12)
I am writing to you today on behalf of the Board of Directors for the Company. Fiscal 2011 was a very interesting and exciting year for Blue Planet. A copy of the financial statements for the year ended December 31, 2011 can be found on our website under Investor Relations. However, the financial statements do not tell ourentire story. Over $1,000,000 of orders for our watering products were placed by mass market retailers in the US and Canada to be on their shelves in the Spring of 2012. On the commercial side, we oversaw the design and construction of a greenhouse near Saratoga Springs , New York, which we have leased and staffed, to be utilized for commercial production as well as a research and testing facility. We expect it will be operational sometime in the Fall of 2012. In December 2011 we closed on a very significant financing with BPE Marketing Services LLC. The terms of the financing provided Blue Planet with $500,000USD initially, with up to three additional follow-on rounds in the following year of $500,000USD each. The second tranche of $500,000USD closed in June 2012, and the third tranche of $500,000USD closed in September 2012. The fourth tranche is expected to close in December 2012. A copy of the press release describing these tranches can be found on our website.
As you may know we listed our common shares on the Open Market of the Frankfort Stock Exchange (the “Exchange”) in November 2009. Since that time, Blue Planet, like many smaller companies around the globe whose shares are listed was hindered by a lack of liquidity and support in the market. At the time we listed on the Exchange, listing requirements were favourable for start-up and young companies. However, in 2011 the Exchange imposed new requirements on companies seeking a listing of their shares, as well as requiring the preparation of a prospectus by current issuers such as Blue Planet to maintain its listing. The Company elected to fulfill the onerous prospectus requirements, in terms of both time and money, in order to remain on the Open Market. We engaged Collins Barrow LLP to assist us to produce audited financial statements for the current year, and previous years. Our prospectus was accepted by the Exchange in late September 2011.
However, during the past year the Exchange engaged in another review of its overall operations leading to, among other things, a restructuring of its listing requirements. Consequently the Company will not be in a position to meet all the current and proposed requirements to continue its listing on the Open Market. While it may be possible to negotiate some relief from these requirements, your Board is strongly of the view that the audit, compliance, and other costs ( over $300,000 to-date) associated with membership, the lack of liquidity provided by the Open Market for Blue Planet’s shares, and the possibility of further, more onerous and uncertain requirements
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