Letter to Shareholders from Newly-Appointed Chief Executive Officer (CEO), Glenn W. Milligan
HOLLYWOOD, FL / ACCESSWIRE / March 5, 2018 / Aluf Holdings, Inc. (OTC PINK: AHIX)
During the initial weeks of my tenure as Chief Executive Officer (CEO) of Aluf Holdings, Inc. ("AHIX"), I have worked closely with Teresa McWilliams and staff to gain a solid grasp on the current status of the company, the challenges that lie ahead, and the most efficient, near-term strategies for realization of our very substantial goals. I would like to address our aggressive plans for moving the company forward throughout this coming year.
First, Shareholders should expect a high level of communication from management on the full spectrum of company activities, such as mergers and acquisitions, product development, capital raises, and strategic business engagements. Through regular press releases and corporate memorandums, generated in concert with our investor relations personnel, AHIX is committed to maximizing both the level of transparency and flow of information to our shareholders. As you are aware, public companies are not permitted to freely disclose certain financial data and other material information. However, within those established regulatory parameters, we intend to be as transparent as possible.
With our concentrated focus on the burgeoning biometrics sector, AHIX is finalizing and preparing for near-term launches of several exciting business initiatives. We are confident these new endeavors will reflect positively on our financials and serve as the foundation for AHIX's longer-term goal of becoming an industry leader through continuing acquisitions, increasing market share, building our brand, and expansion of our service footprint into carefully researched international markets with low-cost, high-return sales, marketing alliance opportunities, and rapid brand awareness. Without compromise, all growth strategies and viable acquisitions going forward will be embraced with the sole intention of strengthening AHIX's bottom line and maximizing Shareholder value.
To this end, I am pleased to inform you AHIX is in the final stages of due diligence and a $15.5 MM capital raise to fund the total acquisition of two (2) targeted biometrics companies, rapid integration of operations, and underwrite a well-planned service expansion while maintaining superior product quality and customer support. We believe these initial entities embody the type of foundation critical for AHIX to leverage decades of growth and profitability. Further, they represent decades of successful business experience, robust research and development programs, cutting-edge intellectual property, proprietary product offerings, highly desirable synergistic sales and marketing operations, and all delivered to diverse, high-profile major corporations and governmental agencies. Their combined portfolio of products and services include secure, scalable, digital cybersecurity solutions for positive human identification and access management, feasibility studies, customized communications and automation analysis, bespoke software development, and other advanced technologies for facial, voice, fingerprint, finger vein, retinal scan, and recurrent still frame and video comparison verification.
AHIX believes the overall biometric technology and software sector is opportunity-rich, especially in our target areas of security, education, defense, immigration, and the projected exponential growth of the "Internet of Things" sector. Biometrics industry experts predict revenues will exceed $23 billion by 2020. One tangible catalyst driving these growth projections is the $400 billion to $1 trillion cost associated with cyber-crime. Many of these attacks are due to vulnerability exploits in authentication software, and web-based authentication networks.
AHIX's future growth and success, increasing brand awareness, and escalating goodwill within the biometrics industry will be driven by us being the "go to" source for the most efficient solutions, techniques, and technology designed to detect and deter attempts at identity fraud, hacker access, and password theft. These types of solutions are mission critical to clients that require continuous monitoring and compliance, such as financial services (trading desks), technology (network operating systems), defense (government facility security and defense manufacturing), higher education (testing, licensing, and certification), and penal systems (private and governmental).
Our new biometrics focus and near-term acquisitions will power an ever-growing IP portfolio with impressive technologies and software systems currently in high demand by local, state and federal law enforcement agencies nationwide. ROI will be driven by the development and monetization of an expanding $40,000,000 sales pipeline and growth of AHIX's technology services footprint into new markets.
A well-trained and equipped sales force is the heart and soul of any highly successful, profitable company. Thus, we have made it a top priority to rapidly build and maintain a stellar sales force equipped with leading technology and CRM software. AHIX's management will ensure the creation and adherence to a unified sales model featuring both direct and distribution strategies to increase sales and maximize profits.
Finally, I want to briefly touch upon the overall direction of the company. By focusing our ongoing personnel and financial resources on identifying and acquiring proven, well-respected brands that embody quality and cutting-edge technology across a wide array of biometric-based products, AHIX can continue the company's upward trajectory. It is my desire for our company's brand to be synonymous with the highest levels of security, quality, innovation, creativity, and customer satisfaction.
As I am sure you are aware, I arrived at AHIX during a period when there has been a massive influx of note conversions from past financings. Recent financial reports, when compared to previous years, have indicated that convertible debt in excess of $487,000 has come off our books. This is a result of our noteholders converting their debt into equity and selling into the market. The AHIX Annual Report will be released next month. It will reflect there are no more remaining debt-to-equity conversions. Although there is an enormous amount of shares in the float, AHIX remains on solid ground.
In closing, I want to express my sincere appreciation for the trust extended to me by Don Bennett, AHIX Chairman, other Board Members, Teresa McWilliams, Chief Financial Officer, and most importantly, the Shareholders. I'm excited to be here. We have a lot of work ahead, but I'm eager to see our many goals come to fruition.
Glenn W. Milligan
Chief Executive Officer
Aluf Holdings, Inc.
Teresa McWilliams, CFO
SOURCE: Aluf Holdings, Inc.