ForceField Responds to Inaccurate Statements Made in a Recent MoxReports Research Report Dated April 15, 2015
April 16 2015 - 6:00AM
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:
- 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.
- 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.
- 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.
CONTACT: ForceField Energy Inc.
Richard ST Julien
(212) 672-1786
rstjulien@forcefieldenergy.com
www.forcefieldenergy.com
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