NEW YORK, April 16, 2015 (GLOBE NEWSWIRE) -- ForceField Energy Inc. ("ForceField") (Nasdaq:FNRG), a seller and distributor of energy products and solutions, today issued a response to statements made in a MoxReports research report ("Report") dated April 15, 2015. While the Company understands the amount of time put into the Report by the writer, the Company believes that investors have a right to receive accurate information. The Company believes the statements made in yesterday's Report are inaccurate and contain numerous errors of facts, speculation and interpretations of events. For example, to name a few:
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The Company has disclosed all material information in a timely manner and in compliance with Securities and Exchange Commission (SEC) regulations. No member of the Company's executive management team has any SEC, FINRA, or other regulatory or civil violations as implied in the Report.
- The Company which is current in its filings and has never made a late filing beyond any allowable extension period; filed its Form 10-K yesterday on a timely basis since it had availed itself of an 12b-25 automatic 15 day extension made necessary due to the complexity of accounting for its two significant acquisitions during 2014. The Company's 10-K addresses some of the following points made in the Report:
(a) The Company has raised $2,597,550 in net cash proceeds for the period January 1, 2015 –April 10, 2015 from the sale of restricted common shares and from the exercise of stock warrants. Additionally an accredited investor who had loaned the Company $1.0 million during the fourth quarter of 2014, agreed to convert his loan into 181,818 shares of restricted common stock and into an equal number of stock warrants in full satisfaction of the loan.
(b) As of April 10, 2015 the Company had approximately $2.9 million in backlog, approximately $1.5 million in signed letters of intent for streetlight projects for three municipalities in Connecticut and one in Massachusetts; as well as 500 active bids for LED lighting projects amounting to approximately $70.0 million. Additionally and not included in the $70.0 million total, is one discrete bid for $22.0 million in Latin America.
(c) The Company made two acquisitions in 2014 of award-winning LED lighting and installation companies, each with a twenty-year track record of servicing high profile clients including numerous Fortune 500 companies and other large concerns. At the time of acquisition, these companies had combined proforma revenue of approximately $17 million, if they had both been acquired for a full year.
(d) Less than 1% of the Company's sales in 2014 came from outside of the United States.
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While it is accurate to state that ForceField's Chief Executive Officer David Natan's, previous company came under regulatory and civil scrutiny while he served as their Chief Financial Officer; the Report fails to mention that there were never any accounting irregularities or findings, whatsoever, against Mr. Natan; who was promoted to an Executive VP position by the successor Board of Directors and CEO of the same company; and that Mr. Natan was an integral member of the successor executive management team that helped the company restore its lost market capitalization.
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The Report which cites a competitor in the same industry the Company operates in provides an inaccurate outlook for the Company's potential future performance if it achieves similar revenue milestones to that of the competitor.
- The author of the Report made no attempt the Company is aware of either in writing, by email, or by telephone to discuss the contents of the Report.
The Company has consistently and accurately disclosed all material information related to its business operations and future opportunities in timely manner, and has provided clarity as to status of bids, Letters of Intent, material projects and contracts, as well the execution and financing risks associated with each and is fully committed to the highest standard of corporate governance as well as transparency and fair and timely disclosure in full compliance with SEC regulations.
About ForceField Energy Inc.
ForceField Energy Inc. and its subsidiaries comprise a global company whose products and solutions focus on sustainable energy solutions and improved energy efficiency. ForceField is a distributor of LED and other lighting products for a number of premier LED lighting manufacturers; and through its award-winning subsidiaries, American Lighting and ESCO, have completed lighting installations and retrofits as well as energy efficiency upgrades, for numerous high profile concerns in a variety of industries. www.forcefieldenergy.com
Forward-Looking Statements
Except for statements of historical fact, the matters discussed in this press release are forward looking. "Forward-looking statements" describe future expectations, plans, results, or strategies and are generally preceded by words such as "future," "anticipates" or "anticipated," "believes," "estimated" or "estimates," "plan" or "planned," "expects" or "projected." These forward-looking statements reflect numerous assumptions and involve a variety of risks and uncertainties, many of which are beyond ForceField's control that may cause actual results to differ materially from stated expectations. Some of the factors that could cause actual results to differ materially from the forward-looking statements contained herein include (i) failure to obtain adequate financing to achieve the Company's LED revenue targets and to support working capital needs; (ii) successful installation and efficacy of the Company's LED lighting products; (iii) expansion of the Company's product offerings and services to additional states across the U.S., (iv) generating additional revenue and profitability from the Company's expected national expansion program, (v) competition within the LED industry both domestically and internationally, (vi) efficacy of ESCO's streetlight product offering, (vii) generating $25-30 million dollars from the streetlight program over the next three to five years, (viii) realizing the potential operating and financial benefits of exiting the ORC waste heat segment and focusing on the LED market opportunity, and (ix) other factors, without limitation, which are set forth in documents we file from time to time with the Securities and Exchange Commission, which are available at www.sec.gov. For a written description of these factors, see the section titled "Risk Factors" in the Company's Form 10-K for the fiscal year ended December 31, 2014 and any updating information in subsequent SEC filings. The Company disclaims any intention or obligation to update these forward-looking statements whether as a result of subsequent events or otherwise, except as required by law.