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EnviroResolutions Shareholder Update
To update you in brief, on February 26, 2010 the SEC alleged that the company was delinquent in filing its financial reporting from 1996 to present. Initially we believed that this was incorrect as none of the facts correlated with the corporate records received prior to the Ecogen merger on 17th August 2007. After a week of debate the SEC was able to provide documentation proving the company was in fact a fully reporting company and thus we were delinquent in filing quarterly and audited annual financial statements for the past 14 years. When the merger was entered in to the company was represented as a non-reporting company and warranties were made to the previous CEO to this affect. Once it was established that the current management had been innocent and unknowing of this delinquency the SEC offered two amicable solutions to resolve the situation. The more favorable solution from both a cost and ‘return to market’ perspective was to withdraw our current SEC registration and submit a new registration application including the most recent 2 years of audited financial statements. Following advice from counsel we agreed to this option and signed the Letter of Consent on March 16, 2010 to settle the historic delinquency issue with the SEC. The effect of withdrawing our registration is to revoke the public trading of our securities until we submit a new application to the SEC. We are currently gathering the required documents including a 2009 audit in order to execute this. The SEC allows 60 days to complete the review of our filing. Upon acceptance, our Company will be a fully reporting company on the pink sheets. The process is estimated to take approximately 90 days for the return to the pink sheets. Our intention is to then upgrade to OTC Bulletin Board at the earliest opportunity. We regret this interruption in trading and its liquidity impact for you as shareholders but can assure you all that we will look to return to the market a soon as practically possible. On a much more positive note, we have seen significant progress in the commercialization of our business and are presently witnessing a significant amount of interest in ENVI-Clean scrubbers for Biomass and are have also received enquiries for specific coal fired power plants which will substantially accelerate our company objective of reaching profitability in as short a period of time as possible. In the interim we will use the website (www.enviroresolutions.com) as the main channel of communication and will update information regularly regarding the SEC application progress and any new commercial successes we achieve. I would like to take this opportunity to once again thank you for your continuing support of EnviroResolutions, Inc. and to let you know that we respect the investment and faith you have placed upon us to build value for you in the future. We will be updating the website as our primary source of information on our progress towards returning to the market and developments in the commercialization of our scrubbing technology. We can also be contacted at info@enviroresolutions.com for further information or updates.
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