27 Jan CHRON Shareholders’ Meeting Recap
Dear CHRON Shareholders, Family & Friends,
I want to sincerely thank all of you who were able to attend our First-Annual Shareholders’ Meeting this past Saturday, as well as those who followed along via the live YouTube stream.
The event was a huge success and I hope you all were able to gain some clarity on who we are as a company and our plans for 2017. I know I speak for our entire team when I say how wonderful it was to finally get to meet some of you all in person. We are so appreciative of the support you all provide. That said, for those of you who were unable to be there Saturday, we wanted to provide a summary encompassing what all was discussed.
The day began with an informal meet-and-greet as shareholders were checking in, grabbing some food and entering into our raffle to win one of two Amazon Echo devices. Special congratulations to our winners, Chad Staggs and Randy Peterson!
After some networking and mingling, Grant Magers, Zen’s VP of Operations, kicked off the meeting with a candid story about our humble beginnings. It was at a dinner only 14 short months ago when Alex Rodriguez, CHRON’s CEO, approached Grant with his plans for a Smart Home company and the two began brainstorming ideas on a cocktail napkin. From there, the idea only grew and the Company quickly went from a small team working out of Alex’s living room (which was fitted with makeshift cubicles) to where we are today, Zen Technologies, Inc., a next-generation technology company committed to enriching lives by bringing all the benefits of the “Smart Home” to the masses at an affordable price. In his presentation, Grant juxtaposed this remarkable journey with the fact that only two weeks ago, he participated in a panel at a CEO Summit in California hosted by Nortek. Nortek is not only a global industry-leading lifestyle innovation company, but also the chief supplier for Zen’s residential division.
“The fact that we were even invited to this event speaks volumes about the waves we’re making within the industry,” Grant said. “Nortek is one of the leading companies in smart home technologies and them wanting to be a part of what we’re doing, despite our company’s youth, is a testament to just how incredibly unique our offering is.”
Grant then brought onto the stage and introduced Byron Young, CHRON Chairman, who gave an in-depth explanation on how far the company has come since he and Alex took it over in December 2015. The CHRO share price currently stands in the 4 cent range, which represents a 400 times increase over the $0.0001 it was valued at prior to the new management team coming on. Additionally, we have more than 1,200 shareholders on record to date.
“Shareholders are CHRON’s biggest asset and you all are the driving force behind our success,” Byron said. “If every person in this room is an active shareholder and engaged in promoting our message, buying our system and getting involved, we will become a leading company in the industry.”
After Byron discussed shareholder responsibility, Alex was welcomed to the stage to present a 2016 expense report (which can be found in the slide below) and provide some clarity on Chron’s corporate structure and business model as an incubator. Alex spoke about the efficiency of the CHRON team and went on to say that most industry experts would value our current platform at anywhere from five to ten million dollars in a strategic acquisition, something unheard of for such a young company. In breaking down the expense report, he explained the Company’s incredible accomplishment of successfully carrying out a corporate restructuring, while also building out various infrastructure items and developing the Company’s unique offering and brand, all of which was done in 2016 for a mere $1.2 million.
Grant was then welcomed back to the stage to present on Zen’s residential services, the new website, livewithzen.com, and gave a live demo of our smart system’s capabilities. He also discussed the future of the company and introduced the entire Zen management team. The key slides from his presentation are below.
After Grant finished up his presentation, he introduced Jeff Bay-Andersen, Zen’s VP of Business Development, to present on Zen’s newly-minted commercial services. Recently, Zen has launched its commercial services operation and is able to provide business owners with a very unique offering in which they can take advantage of Zen’s suite of smart controls, reduce their energy consumption and operating expenses, while still paying nothing up front or incurring any new liabilities on the balance sheet. This is through Zen’s new Zero-Cost Program, Jeff explained. Key slides from Jeff’s presentation can be found below.
A Q&A session was held after Jeff’s presentation Alex, Byron and Doug McKinnon, CHRON’s Chief Compliance Officer, answering questions. One of the biggest questions was regarding if the Company would have to do a reverse split and the management team made it clear that there are no plans to do at this time and will not occur at least until the Company up-lists to the NASDAQ or the NYSE. Alex went on to say that he and the management team will take every strategic step possible to ensure that any reverse in the future will in no way negatively impact shareholder value. Following the Q&A panel, Alex took the stage to give a few closing remarks and make some exciting announcements. He provided greater detail on the Company’s entry into the REP market, the planned up-listing and the ongoing discussions with major direct-selling organizations. Key slides from this closing presentation are below.
Again, I want to stress how appreciative we are of everyone who was able to attend. This Company would not be where we are today without our shareholders and I am so excited for all that is to come in 2017. My email is email@example.com and , as always, please never hesitate to reach out to me with any questions.
Investor Relations Coordinator
The CHRON Organization, Inc.