PRHL President and CEO Randall Letcavage Delivers Public Message to Shareholders and Interested Investors
TUSTIN, CA--(Marketwired - Nov 10, 2015) - Premier Holding Corporation (
CEO and President Randall Letcavage made the following public statement today on behalf of Shareholders and interested investors:
"As we finish a successful 2015 we are looking forward to 2016 and expect to have a very dynamic year. In 2016 we expect to integrate an Energy Supplier as part of our core companies, further develop and grow E3, and utilize all of the resources and customer base at The Power Company to convert prospects for E3 and our supplier. In the meantime, The Power Company on its own continues to grow its customer base as well as business and technology development. Before we get into our plans for growth let's discuss where we have been and how we expect to finish up this year.
"One of the questions that shareholders have asked is what happened with Lexington Power & Light and our plans to be a supplier for 2015. As previously reported in November 2014 we acquired Lexington for stock and a cash buy out and we enjoyed one quarter of revenue from this acquisition. It soon became apparent that a combination of factors that included an erosion of their customer base, expensive financing, and pre-existing business agreements combined to make Lexington an undesirable subsidiary for our growth plans, and in fact we determined that it could in fact put both E3 and The Power Company in jeopardy as its lenders asked for guarantees from Premier. At this point we decided to vacate the transaction and we reported a default to conservatively comply with disclosure requirements, when in fact we believed we had exceeded our obligation to Lexington. But the fact of the matter was we needed a better design and structure for a future supplier and Lexington did not fit the bill. Upon vacating the transaction Lexington lost half its customer base and defaulted to its lender and we are thankful that we had the foresight to avoid these issues at Premier. As Lexington struggled and moved to sell off its remaining contracts we were told that its FERC license would be available to us and we would then use that to launch our supplier -- we were told this over six months ago and this has been our holdup in building out a critical piece to our overall design of integrated Energy Services Companies.
"If you recall from previous correspondence and reporting, our proposed supplier would contract with the Power Company for sales and based on The Power Company's past performance and sustained growth we believe The Power Company could conservatively drive $30 - 50 million in revenues to this proposed supplier and more importantly, as those contracts become part of the supplier, we believe they would be worth as much as $600 to $800 per contract. This is the compelling reason we entered into this space! So consider this -- we have over 150,000 potential customers that we have already contracted -- we sell power to over 4,500 new customers in average every month and we have not yet talked about our state of the art Energy Portal that we expect to become similar to today's trading platforms in financial services, whereby we would not only get a piece of every transaction, but we would also be able to market our own supplier pricing. This could take the revenue projections much higher for 2016.
"Over the next few weeks and months we will be releasing more of our plans and our progress including our work on moving to a senior trading exchange. As we complete our strategy it is incumbent for us to trade on the NASDAQ or NYSE exchange and as noted we have engaged The Maxim Group, LLC for this process. We have also contracted with several well-known brokerage/securities firms to move us forward and surround us with professional resources.
"In closing we have an incredible infrastructure and sustained growth that could be highly leveraged by cross selling so we have decided not to wait for the disposition of the Lexington license, but to waste no further time in building out our model and to go ahead a file directly for a FERC license. We have completed most of this process and expect a quick response since we were previously approved in this process.
"If you understand our integrated model and believe in what we have already done you can see why we are excited to look ahead. You can also see that over the next few years we have designs on holding 200,000 to 300,000 contracts in our proposed supplier and that, based on $600 per contract, could have an accumulated value in excess of $180,000,000. This is the very reason why we have spent the time, effort and money to perfect our sales and marketing in this space. I remind everyone that we could focus on short-term revenue and profits, but in this industry it's all about controlling the contracts, and we set out to get as many contracts as possible in our system. I further remind everyone to remember the deregulation of telecommunications industry where many companies benefitted greatly by acquiring customers and whereby a series of transactions resulted in the smaller players being gobbled up by the bigger players and creating the new giants today. This phenomenon made a lot of investors and operators very rich throughout this process -- we believe we are looking at a similar story in this industry where customer acquisition will be highly valued and rewarded.
"Today we are moving forward on the aforementioned and we are also building up our sales model for E3. Many of you may know it is only recently that we have focused on E3 and we are extremely pleased with the results as we have become a preferred vendor for several large organizations and have started to market to our own existing deregulation customers. This side of our business carries much higher margins and profitability.
"This message is designed to reaffirm an understanding of our model and therefore create a meaningful communications platform going forward as we expect to deliver future press releases and other information that will allow you to chart our growth, the development of our plan and our customer acquisition strategy."
About Premier Holding Corporation
Under the corporate motto, "Everything Energy," Premier is an energy holding company focused on acquiring and integrating energy companies as synergistic subsidiaries. The Company accumulates residential and commercial clients in deregulated markets from all subsidiaries and cross sells energy and energy efficiency products and services, maximizing profit potential and minimizing cost of client procurement. In addition, Premier Holding provides top line management and financial support, which includes access to capital, financing, legal, insurance, mergers, acquisitions, joint ventures and management strategies. Additional integrated business offerings include direct energy services as power purchase agreements (PPAs), energy financing and leasing of generation programs in urban and rural real estate environments, lighting efficiency systems and refrigeration systems. For more information visit PRHL Investors Relations www.prhlcorp.com.
About The Power Company (TPC)
The Power Company USA, LLC is a professional energy services firm offering brokerage and consulting services with a progressive and unique perspective on energy management based in Chicago, Illinois. Their mission is to assist companies in reducing and managing their electricity expenses. Their diverse portfolio of energy providers, transparent pricing, and unparalleled industry experience offers customers the freedom of exploring all of their options for choosing the best plan and provider. Operating in all currently deregulated states, including Texas, New York and Illinois, TPC and its partners/suppliers have provided an invaluable service to its clients. Their team has consulted and/or serviced such prominent companies, organizations and governmental entities such as: The City of Dallas, Ralcorp, Choice Hotels, Apex Hospital Systems, Mercedes Dealerships, Leona's Restaurant Group, McDonald's, and many others. Because of the large amount of business transacted and their long-standing relationships with Regional Energy Suppliers, TPC is assured to provide the most competitive prices in the industry. For more information visit: www.thepowercompany.com
About Energy Efficiency Experts (E3)
E3 is an Energy Services Company (ESCO) formed by PRHL to provide the best of breed solutions to its clients by utilizing proprietary technologies and high level industry relationships. By maintaining a "product agnostic" approach, E3 will prescribe the best solution for the unique circumstances of its clients after careful survey and analysis. Through its ever-growing acquisitions and alliances, E3 strives to provide the most current, and fully-vetted solutions in energy generation and energy reduction technologies, as well as management tools which capture the client for future opportunities. Recent acquisitions include Active ES Lighting Controls technology and The Power Company. Strategic alliances include Orion Energy Systems, Muni-Fed Energy, Nor Cal Reps, Western Glass and Restoration and Tinting, and Energy Innovation Enterprises. These alliances further advance E3's business strategy of providing only those technologies that have proven themselves in the field in both technical sophistication/reliability and financial justification. For more information visit: www.prhlcorp.com.
About Maxim Group, LLC
Founded in 2002, Maxim Group is a leading full-service investment banking, securities and wealth management firm headquartered in New York, providing a full array of financial services including investment banking; private wealth management; and global institutional equity, fixed income and derivative sales & trading, equity research and prime brokerage services to a diverse range of corporate clients, institutional investors and high net worth individuals. Maxim Group is a registered broker-dealer with the U.S. Securities and Exchange Commission and the Municipal Securities Rulemaking Board (MSRB). We are members of the following: Financial Industry Regulatory Authority (FINRA), Securities Insurance Protection Corporation (SIPC), NASDAQ Stock Market and NYSE Arca, Inc.
Premier Holding Corp. Safe Harbor
This press release contains certain statements that may include "forward-looking statements" as defined in the Private Securities Litigation Reform Act of 1995. These forward-looking statements are often identified by the use of forward-looking terminology such as "believes," "expects," "anticipate," "optimistic," "intend," "will" or other similar expressions. The Company's actual results could differ materially from those anticipated in these forward-looking statements as a result of a variety of factors, including those discussed in the Company's periodic reports that are filed with the Securities and Exchange Commission and available on its website at http://www.sec.gov. All forward-looking statements attributable to the Company or persons acting on its behalf are expressly qualified in their entirety by these factors. Other than as required under applicable securities laws, the Company does not assume a duty to update these forward-looking statements.
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