SAN DIEGO, July 12, 2011 /PRNewswire/ -- Imagenetix, Inc. (OTCBB: IAGX) issued today a shareholders' letter discussing the results of its fiscal year ended March 31, 2011 and its focus for the future.
Dear Imagenetix shareholder -
Following completion of our fiscal year ended March 31, 2011 and as we commence the new fiscal year, I would like to address our recent results and summarize our strategic focus for the future.
Over the past few years our primary strategy has been marketing branded products directly into the food, drug, mass and club stores. We started this process with our most notable brand, Celadrin®, in several stores. Initial results were encouraging and we expanded the program – in some cases nationwide. This expanded distribution model generated higher product sales however it required significant and growing resources for marketing, advertising and promotions. As you can see from our recently announced financial performance, this direct distribution model has proven to be quite costly to our liquidity and operations.
After an extensive evaluation by management and meetings with third parties, we have concluded that the best strategy is to focus on our strengths and leverage our product and technology differentiation. Therefore, we are advancing in our efforts to transition from distribution of our branded products directly to market our novel and valuable intellectual property portfolio and compounds to third parties who have the desire, infrastructure and financial resources to penetrate significant world-wide markets for human and animal applications. Our goal is to partner with such companies, including current discussions with some Fortune 500 companies, by negotiating specific and exclusive intellectual property / distribution rights. In return we would expect to receive value in the form of cash; royalties and revenues from the sale of our proprietary raw materials. We believe that this strategy will provide significant margin and cash flow opportunities, while allowing us to maintain a low overhead structure.
Imagenetix has developed an array of novel discoveries and health technologies which we believe can be best commercialized globally by top international companies focused in those sectors. We have commenced advancing on this strategy. Our initiatives and focus are designed to rapidly capitalize on these prospective partnering opportunities to distribute our novel and intellectual property protected compounds; some of which are expected to require FDA approvals as therapeutics.
The value created at Imagenetix has been primarily associated with the development and advancement of unique health related products and technologies. This value correlates ideally with the strategy of aligning ourselves with large and financially sound firms in offering them our proprietary health technologies.
Although I see this past fiscal year's financial results as very disappointing, I personally am excited about our new direction and committed to it. I am also delighted in announcing the recent addition of our newest board member – William "Bill" Toomey. Bill's vast network and experience in working with Fortune 500 leaders makes him a valuable board member. Bill Toomey is a legendary Olympic Gold Medal Winner who has worked for and on behalf of the International and United States Olympic Organizations.
We anticipate providing updates to you as we advance on our strategy into the 2011-12 fiscal year.
Thank you for your continued support as an Imagenetix shareholder.
William P. Spencer
Imagenetix, based in San Diego, California, is an innovator of scientifically tested, natural-based, proprietary, bioceutical products developed to enhance human health on a global basis. Imagenetix develops and formulates propriety over-the-counter topical creams, skincare products and nutritional supplements to be marketed globally through multiple channels of distribution. In addition, the company develops patentable compounds for entering into licensing agreements with Fortune 500 companies.
Certain matters in this news release are forward-looking statements which are subject to risks and uncertainties that could cause actual results to vary materially from those projected. Such risks and uncertainties include, but are not limited to, adverse fluctuations in future operating results due to a number of economic, competitive, and other factors, including, among other things, the size and timing of customer contracts, new or increased competition, changes in market demand, and seasonality of purchases of the company's products and services. Additional information with respect to these and other factors, which could materially affect the company and its operations, are included in the company's SEC filings, including its Form 10-K for the year ended March 31, 2011.ContactImagenetix Investor Relations
William P. SpencerTel: (858)385-2797
Chief Executive OfficerImagenetix, Inc.Tel: (858) 674-8455
|SOURCE Imagenetix, Inc.|
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