27 May Open Letter to Shareholders
The Management of The Chron Organization wanted to reach out and say thank you to each and every shareholder that has believed in the USAR/CHRO story thus far. Alex and I started this company in November 2015 when the Company was about to go out of business. Since we’ve become involved and decided to take over the Company, we have seen the stock price explode from a price of .0001 cents per share and a market cap of $50,000 to as high as $.055 cents per share to most recently a pull back price of .025 cents per share. The growth rate has been exponential and many shareholders that got in early have already been rewarded handsomely in our early pre-launch stage.
Last week, CHRO experienced a pull-back in the price per share of the stock. We here at CHRON believe the reason for the pull-back on the stock price most recently from $.055 cents per share to $.025 cents per share was due to an old lawsuit that was recently settled. CHRO had to settle a lawsuit from when the Company used to be the restaurant company, USAR. We had to issue 7 million shares of stock as a result of that settlement. It is management’s belief (we do not have the facts to support this position, only our belief) that the party CHRO settled with may have dumped all 7 million shares at once resulting in a dip in our price per share. Due to the fact that our stock is thinly traded, when a shareholder dumps a position in CHRO, the impact of this is that the stock will go down.
We understand that some of the shareholders in CHRO are new to the OTC market place. We understand a lot of our shareholders are nervous about the volatility or movement up and down of the stock. We, as shareholders, are all excited on the days when the stock breaks new highs, and are unhappy on the days that the stock trades lower. Alex and I both share the same feelings that our shareholders have and experience the same highs and lows. The fact of the matter is that the market (buyers and sellers) truly determines the daily price of the shares based on supply and demand of the shares.
Some of the shareholders that we have are completely new to securities and may not know what drives a stock price higher or a stock price lower. The simple answer to this question is as follows; the stock will move higher when there are more buyers and will go lower when there are more sellers. If everyone buys at once, the stock will move higher. If everyone sells at once, the stock will mover lower. I encourage anyone curious to know why a stock moves to watch this short and informative video at http://bit.ly/1WUZDX8. The more the world learns of the story of the Company and decides to buy a position in the stock, the higher the stock will go.
When the stock tends to move higher or lower, Alex and I will get asked how the Company is doing. The fact of the matter is, that internally, the price per share of the stock really has no impact on the business plan in the short term. We have successfully raised approximately $800,000 and we have plenty of commitments in place for additional capital. So in the short term, the movement of the stock has no impact on the internal operations of the Company.
As far as operating the business is concerned, Alex and the operational team are building a massive infrastructure that can accommodate business on a national scale. The Company’s goal internally is to start bringing on alarm and security revenues on or before July 1, 2016. While that will be great short term news, you will be pleased to also know that long term the team is working on developing cutting edge intellectual property, solidifying mass-marketing channels and looking for strategic acquisitions. We are also working to develop a 100% investor-public relations campaign(s) to let the world know about the Company, our products and services, and who CHRON is as a company. Alex and I both believe strongly that after some trial and error we will get comfortable with our long term PR and IR strategies and it will ultimately bear much fruit for all of the shareholders of the Company. There are no shortages of third party individuals and companies willing to offer us “investor relations” and “marketing” services, promising us the world so to speak. Sure the stock will go up, perhaps even to incredible levels; however, this is what we refer to as “phantom growth”. From our research, these campaigns in an overwhelming fashion result in short-term results that in the end do more damage than good for the Company.
Having said all of that, there is a place for good investor relations campaigns and best practices that result in positive growth of our shareholder base and of our stock – but we want to do it organically and with excellence. Towards this end, we recently launched our updated website www.chronorganization.com. We encourage all of our shareholders to read our press releases and also watch the video that we have posted on the site laying out the business plan for our shareholders here at http://www.chronorganization.com/investor-relations/.
We are also planning an open house to invite all of our shareholders to come and visit with us face to face at our new corporate headquarters. We anticipate having this open house in the August/September time frame and will be sending out email invitations to everyone. Lastly, we’ve recently engaged a high profile New York based creative and ad agency, which we believe will produce quality work that will best relay our value to customers and to the investment community.
We thank every shareholder that has taken a position early in our incubation or seed-phase. We are excited as we transition into the second phase, which Alex describes as “market testing” or “pre-launch”. I can assure you all that the Chron management/operational team is amazing and is working day and night to create a company that will be a force to be reckoned with over the next several years.
We remain sincerely yours,
Byron Young Alex Rodriguez
Chairman and Treasurer President & Secretary
PS: Byron’s the guy in the cowboy hat, with his beautiful wife and a couple of our shareholders from the West Coast.