LOS ANGELES, Oct. 31, 2016 (GLOBE NEWSWIRE) -- Blow & Drive Interlock Corp, (OTCQB:BDIC) announced that the company has issued a letter to shareholders to provide an update on the company's recent progress.
Dear Shareholders,
I am pleased to announce that as of today we have completed production of all 500 of our BDI 747 Breath Alcohol Ignition Interlock devices and we have deployed approximately 300 of the 500 under lease in just over one-week. Even more exciting, based on our current sales data, the company anticipates, that this remaining 200 units will be deployed and under lease within the next 10-14 days. Adding these 500 reoccurring revenue-generating interlocks will more than double BDIC’s monthly reoccurring revenue practically overnight. I would personally like to thank the Doheny Group for making this goal possible by providing us with the necessary capital for explosive growth.
This leads me to want to address some confusion on social media that has been brought to my attention, in regards to the financing arrangement with the Doheny Group. To be abundantly clear, there are absolutely no convertibility provisions relating to our outstanding loan, stock purchase agreement and/or royalty agreement with the Doheny Group. Under no circumstances, even in the unlikely event of default, are there any convertibility provisions in any of our agreements with the Doheny Group. There are also no additional warrants or options of any kind. The Doheny Group received restricted stock in the amount of 4.99% of our outstanding shares and will receive an additional one-time issuance of restricted stock in the amount of 5% (for a total of 9.99% of BDIC’s restricted outstanding shares) at the closing of our second tranche of financing.
We were presented with many offers for financing and our experienced securities attorney analyzed them all and advised us that the Doheny Groups money had minimal risks, as opposed to other investors who prey on companies with toxic convertible notes and/or debts. Further, based on our discussions with the Doheny Group we are confident that they plan to hold on to our stock for the long-term past the six-month mandatory restrictions on any resale of the securities.
I have made it clear to shareholders that we are steering clear of any and all toxic convertible debt. This is a commitment that I made to shareholders early on and I am very proud to have kept this promise. This is a core component that I intend to memorialize as a cornerstone of our company’s shareholder policy. We remain committed to steering clear of any and all "toxic" convertible debt and strongly believe this will benefit our shareholders over the long term.
Secondly, the company has determined that there is no material difference between the OTCQB and the OTCPinkMarkets. It is our current position that differentiation between the markets is practically just a fee involved for the OTCQB application. We are currently engaging with the OTC Markets Group in a healthy dialogue with regard to the matter but we may transfer our public listing to the OTC Pink marketplace on November 15, 2016. We are open to reconsidering the OTCQB Marketplace if we feel that circumstances change. To be abundantly clear, our corporate compliance policies and practices will not be changing regardless of whether BDIC trades on the OTCQB or the OTC Pink. Blow & Drive will continue to be providing investors with optimal transparency by remaining fully SEC compliant and maintaining audited financials. We are committed to uplisting to the NASDAQ sometime in the future and we are on track in that regard. We will of course be keeping investors updated as we move closer to this date. We are carefully reviewing the matter and, as always, we encourage investors to let us know their thoughts or practical information as we consider the matter.
The decline of our company’s stock price is something that I know has been frustrating for many shareholders, myself included. We do not understand the performance of BDIC stock and it seemingly is defying logic. Our company is generating more revenue that it ever has and we will soon have over 2,100 units deployed across the 11 U.S. States in which we are approved. We believe that with our existing reoccurring revenue, over $500,000 in assets, and commitments from The Doheny Group to fund even more BDI-747 interlocks, that our company is worth more then its current valuation.
With regard to our current share structure; we began the company three years ago with approximately 15 million issued shares, of which just under 10 million are owned by the CEO himself. Of the 15 million issued shares, only 5 million were registered with the SEC for resale to the general public and that number has not changed. Over the last three years of research, development, bringing our product to market, building out an infrastructure and receiving regulatory approvals in 11 states, federal compliances, and for the production of over 2,100 BDI 747 units, we have had to issue approximately an additional 3 million shares, including the approximate 1,500,000 shares to the Doheny Group. None of the additional shares that the company has issued are eligible for resale to the general public under Rule 144 and no other registration statements have been filed with the SEC either.
As we continue to scale growth, it is likely that we will not need much more additional financing. If our stock continues to perform at its current levels we intend to start buying back our shares. I will be working with our CFO to explore the practical steps in this regard. At the current juncture, time and resources are being fully committed to manufacturing & deploying more and more units. Notwithstanding, as we complete these objectives we do feel that our shares are so undervalued that we would begin to repurchase them ourselves.
The SEC has approved Twitter for investor relations and communication and if there are any concerned investors we encourage you to reach out to us at @blowanddrive.
Sincerely,
Laurence Wainer
CEO
FORWARD-LOOKING DISCLAIMER
This report may contain certain forward-looking statements and information, as defined within the meaning of Section 27A of the Securities Act of 1933 and Section 21E of the Securities Exchange Act of 1934, and is subject to the Safe Harbor created by those sections. This material contains statements about expected future events and/or financial results that are forward-looking in nature and subject to risks and uncertainties. Such forward-looking statements by definition involve risks, uncertainties and other factors, which may cause the actual results, performance or achievements of mentioned company to be materially different from the statements made herein.