ORLANDO, Fla., Nov. 23, 2004 (PRIMEZONE) -- The World Golf League, Inc. (OTCBB:WGFL) announced today that its CEO has released a letter to shareholders which follows.
As we close the 3rd quarter of 2004, I would like to take this opportunity to address several issues with our shareholders. First let me say, that although our retail membership numbers were disappointing, we have made significant progress in strengthening our balance sheet. Our net operating loss decreased $2,089,181 to $58,942 or 78% from the same period one year ago. Our G&A expenses decreased $1,607,691 to $563,352 or 74% from the same period one year ago.
As a result of the poor performance of the retail member channel, we will no longer pursue this market in 2005. We will concentrate all of our membership marketing resources in the wholesale channel, where we have already distributed 250,000 in 2005 memberships. Through an agreement with our marketing partner, the WGL will receive $50.00 for each membership redeemed. We expect our redemption rate to exceed 50%, with the distribution of over 700,000 wholesale memberships in 2005.
We continue to make tremendous progress with The WGL Million Dollar Shootout. We are negotiating with three major networks and will maintain the licensing rights to the show through 2007. The network airing venue is critical to the success of the show and its future value, therefore we are willing to push the production and airing of the series into spring 2005 to gain maximum network exposure. We remain committed to producing a world-class series with maximum returns for the WGL and its shareholders.
Our current financing is being funded through a convertible debenture with Golden Gate investors. We have over $2 million in capital, which we can draw from through the issuance of registered common shares to Golden Gate. However, we will seek alternative private financing recourses to limit the dilution of common shares over the 500 million authorized. I have delayed the authorizing of additional common shares from 500 million to 1.2 billion as we seek alternative financing solutions.
Finally, we anticipate making final payment on our $290,000 note to the players of the 2001 National Tournament by year's end. This will place the WGL in a debt free status as we move forward into 2005. With two streamlined revenue channels in place (Wholesale Memberships and Reality Television) I expect 2005 to produce the results that our supporters and shareholders have been expecting for some time. I remain fully committed to achieving the objectives set forth and thank all of our shareholders for their continued trust and support.
Michael S. Pagnano CEO, The World Golf League, Inc.
To the extent that statements in this press release are not strictly historical, including statements as to revenue projections, business strategy, outlook, objectives, future milestones, plans, intentions, goals, future financial conditions, future collaboration agreements, the success of the Company's development, events conditioned on stockholder or other approval, or otherwise as to future events, such statements are forward-looking, and are made pursuant to the safe harbor provisions of the Private Securities Litigation Reform Act of 1995. The forward-looking statements contained in this release are subject to certain risks and uncertainties that could cause actual results to differ materially from the statements made.