Huntington Beach, CA (PRWEB) October 05, 2012
Greenway Design Group, Inc. (GDGI) releases the following letter to its shareholders.
Dear Greenway Shareholder:
I am writing today to update you on developments that have prevented us from filing our 10-Q for the quarter ending August 30th, 2012.
As you know from our prior releases, the company has achieved several significant goals since its name change and acquisition of the Cool-n-Save pre-cool technology in 2009-2010. We completed development of the technology and proven that it works in various climates. We established a manufacturing process that delivers a reliable product. We won an award for "green engineering" in 2011. We also established some early successes in sales.
GDGI continued to build on early sales this year. We spent more than a year demonstrating the technology at various U.S. commercial locations and proved that Cool-n-Save pre-cooling can reduce energy consumption of commercial air conditioning systems by as much as 30%. We were recently privately congratulated by a regional energy company due to the fact that Cool-n-Save had successfully prevented their air conditioning systems from shutting down when daytime outdoor temperatures exceeded 100 degrees Fahrenheit for nearly 4 weeks. We also sold systems in Mexico, Costa Rica, and we are on the verge of completing additional sales here in the U.S.
Our internal forecasts showed promising sales reports for 2012 - sales that were memorialized and confirmed by purchase orders and letters from our customers. However, persistent delays in receiving payment from these and other transactions have severely impacted our operations. We have attempted every possible and responsible means of raising funds in an effort to make the company more attractive to new investors. In May of this year, we attempted to reduce its debt by allowing our earliest investors to convert shares. But this effort was circumvented by the sudden drop in share price. Despite all of our best efforts, our cash situation has deteriorated and the company is now unable to maintain normal operations.
The promises for payment from these confirmed orders have been persistent. If we received payment as promised, the company would have sufficient cash to continue normal operations. One order is accompanied by a letter of approved funding from an international funder, but the customer has delayed action for more than three months. Even at the penning of this letter, we still are receiving promises that funds will be released to us "any time now."
Cooperation from our existing creditors and vendors will help us stave off additional actions, however, this situation could change at any time if nonpayment from orders continue. We will maintain and protect Greenway's hard-won intellectual property and trademarks. We will service our customers and be on hand to assist our dealers.
Should any further significant developments occur, we will keep you informed.
This press release contains “forward-looking statements.” Forward-looking statements are statements concerning plans, objectives, goals, strategies, expectations, intentions, projections, developments, future events, or performance, underlying (expressed or implied) assumptions and other statements that are other than historical facts. These forward-looking statements are only predictions. No assurances can be given that such predictions will prove correct. Actual events or results may differ materially. Forward-looking statements should be read in light of the cautionary statements and risks that include, but are not limited to, the risks associated with a small company, our comparatively limited financial and managerial resources, our inability to market and sell our limited product line in sufficient volumes that may allow us to achieve and maintain profitability and positive cash flow, the uncertainty of market trends, the intense competition faced from other current and future technologies and the uncertainties of competitive pressures we face. These or other risks could cause actual results to differ materially from the future results indicated or implied in such forward-looking statements. We undertake no obligation to update or revise such statements.