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Letter to Shareholders September 16, 2011
Dear NewMarket Investors-
The Company hosted a town hall meeting on Tuesday, September 13th. The meeting was announced in June through press, on the Company website and in an email sent to those that have signed up to receive email communications from the Company. Registration was available online in August, with late registration available to those that called or emailed the Company to inquire.
The primary purpose of the meeting was to provide investors a venue for facilitating a dialogue with management, founders and directors in light of the apparent increased volume of questions, complaints and concerns related to recent price per share performance. Five individuals registered online to attend, one registered late and three individuals actually attended.
The individuals that registered to attend were contacted in advance and requested to provide any questions, comments or concerns to be included in the dialogue.
The meeting began with a brief overview and discussion of the most recent annual report and the most recent quarterly report.
NewMarket 2010 10-K: http://1.usa.gov/qsxbaB
NewMarket 2011 Q2 1-Q: http://1.usa.gov/qZmmjs
Management emphasized information in those filings, including a sharpening focus on what they considered the yet unrealized value of the operating subsidiaries and the ongoing development of a revised business plan surrounding that yet unrealized value. In the review of the recent publicly available reports, management pointed out the discussion contained within the reports focused on the subsidiary value and the corresponding efforts to develop a revised business plan surrounding that value.
The meeting included a discussion of the recent public disclosure regarding the Company’s plan to increase the number of authorized shares. Management emphasized the purpose of the planned increase is fully detailed within the public disclosure.
NewMarket Pre 14-C Filed Sept. 9, 2011: http://1.usa.gov/r3ajiP
In a response to discussion regarding the general topic of stock message board posting, management pointed out that the Company has received very few direct emails or telephone calls regarding the topics that could be characterized as ‘complaints’ found in some message board posts. No specific content of any message board posts was included in the discussion. Management pointed out the message board posts are primarily anonymous. Management included in the discussion of stock message board posts that some Company vendors and customers have been contacted by anonymous parties making accusations similar in nature to the content included in some message board posts. No specific examples of information conveyed to vendors or customers were discussed. Management acknowledged that they have reviewed the message board posts and believe in general that the origin of the questions and concerns included in the content of posted messages to be less than genuine. In other words, it is management’s belief that the majority of posts are being made by individuals with an ulterior motive not in the best interest of Company or its shareholders. Management stated that, if the origin of the questions and concerns from the message boards were indeed genuine, the Company would expect to see a higher volume of direct questions and comments via telephone or email, in addition to expecting a higher volume of participants at the town hall meeting.
Management indicated the Company has been damaged by the anonymous questions and complaints emanating from the message board posts. That damage is related to the loss of some business relationships and lost confidence in other business relationships. Management further indicated that action could be taken in reaction to the damage that has been caused to the Company.
The final topic of discussion encompassed the Company’s plans for going forward. Management indicated it was developing possible alternative plans centered on what management reiterated as its belief, as disclosed in the Company’s public filings, in the yet unrealized value of the operating subsidiaries. Mr. Philip Verges indicated that he and the other founders are exploring opportunities to exit their controlling interest in conjunction with management’s efforts to develop a revised business plan. Mr. Verges explained that he was looking to dedicate more time to his efforts to develop an organization facilitating small and medium enterprise investment globally and at the same time avoid any potential perception of a conflict of interest with his ownership in NewMarket. Management pointed out the details of a go forward plan would largely depend on the expectations of a new majority shareholder in the event the current majority shareholder exits from a controlling position. Management further pointed out that a change in the majority shareholder, combined with a change in the business plan, could also result in additional changes to the current management and directors. Management, founders and directors are working to have a new direction and possibly new majority owner in place by year-end.
Bruce Noller
Chief Executive Officer
NewMarket Technology, Inc.
"SAFE HARBOR STATEMENT" UNDER THE PRIVATE SECURITIES LITIGATION REFORM ACT OF 1995
This letter to shareholders contains forward-looking statements that involve risks and uncertainties. The statements in this release are forward-looking statements that are made pursuant to safe harbor provision of the Private Securities Litigation Reform Act of 1995. Actual results, events and performance could vary materially from those contemplated by these forward-looking statements. These statements involve known and unknown risks and uncertainties, which may cause NewMarket's or China Crescent’s actual results in future periods to differ materially from results expressed or implied by forward-looking statements. These risks and uncertainties include, among other things, product demand and market competition. You should independently investigate and fully understand all risks before making investment decisions.
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