Kelyniam Global, Inc. (OTC.BB:KLYG), CEO would like to clarify the Press Release issued on August 8, 2008 and to inform shareholders of recent company developments.
Letter from James Ketner:
After numerous calls regarding a press release issued by the company on Friday August 8, 2008, I felt the need to clarify the company's intentions. The language chosen for that press release was misleading, and it was a mistake on my behalf. Let me explain. The cover page of a Form 15 has the following title.
Certification and Notice of Termination of Registration under Section 12(g) of the Securities Exchange Act of 1934 or Suspension of Duty to File Reports Under Sections 13 and 15(d) of the Securities Exchange Act of 1934.
We should have tilted the press release of our intentions to Suspend Kelyniam Global, Inc. Duty to file Reports. We will not be terminating the Registration statement but suspending the Duty to File Reports under the provisions of Rule 12h-3(b)(1)(i).
Management has decided that terminating the company's reporting requirements are in the best interest of our shareholders and the company. For example: We recently acquired M2-Systems. The fees involved for the accounting firm to close the books on M2, and rename all the accounts, provide reviews, in general, the get M2 into Kelyniam was around $20,000. In order for Kelyniam to be compliant with the above mentioned reporting requirements, we now have to have another audit done by a PCAOB accounting firm, which is an another $30,000. Additionally, the PCAOB accounting fees for the Canadian acquisition, because it is an international transaction, are going to be significant. We are also looking at 2 more acquisitions in the near future. I believe the first order of business should be to get all the acquisitions finalized, get the company out of debt, and focus on continued growth and profitability with a solid earnings base, not focusing on a continued listing on the OTC.BB where our stock is currently trading at a 2009 forward multiple of around 4 without the Canadian acquisition, or any other future acquisitions.
On a press release dated July 22, 2008, I said that the company would probably become profitable by year end. In order for me to keep that promise, it is necessary to cut cost on the corporate side of the business by making these adjustments. The bottom line here is that things are taking longer than I had expected because we have not been approached by a suitable financing opportunity, and I refuse to enter any type of toxic financing such as a convertible debenture. We are becoming profitable, so it is not absolutely necessary to obtain equity financing right now, and it would be irresponsible for me to enter a financing deal at a share price lower than what I think the company's stock is worth, no matter how convenient. If a fair an equitable financing is afforded the company, which management is pursuing, it will allow us to move things along at a faster pace, but until then, we are going to proceed with our current plans at the cost of taking more time.
We are going to continue to file reports that would normally be required by the commission on the company's website, and on the Pink Sheet exchange were the company's stock should continue to trade, just not with the stamped approval of a PCAOB accounting firm. We are also going to create a link on the company's web site for all our financial reports. All news releases will be posted on the company's web site which can be found by following the link on the left hand side of our home page. If we have new information, there will be a red "new" next the press release tab.
If you have any further questions, please feel free to contact me or Ms. LynRay. I appreciate your time and continued patience.
Sincerely,
James Ketner, President/CEO/Chairman
More information Kelyniam Global, Inc. can be found by following the links provided on our home page. (www.kelyniam.com).