NEW YORK, NY -- (Marketwire) -- 02/06/13 -- VuQo Holdings Corp. (PINKSHEETS: VUQO) today issued a letter to shareholders from the company's CEO, Rolando Sianghio, to update shareholder on the progress company has made and future plans.
Let me start off this letter by reassuring our shareholders that VUQO Holdings Corporation ("VUQO") remains sustainable and that the diversified team is intact and working diligently to enhance the work of the company for the benefit of our shareholders. This year promises to be an exciting time for our company, and we intend to inform our shareholders and potential investors regularly of our progress as we move aggressively and diligently in the implementation of our business plan.
Evidently, VuQo Holdings subsidiary VuQo Beverages Inc. and El Coco Wine had significant opportunities and assets to perform on its business plan and generate revenue. For various reasons, this was not happening at the rate that was expected. It seemed to me that the previous management focused on large opportunities with a prolonged sales cycle that have not yet turned into revenue. This strategy did not do as well as we expected for our stock price. Presently, we are reorganizing and redirecting the company. In an effort to advance this turnaround, we announced that Waste Management Asia Corporation ("WMAC") has been acquired by VuQo as a wholly owned subsidiary. Through this acquisition, we picked up a number of benefits including tremendous marketing resources, an integrated platform, key personnel, revenue and assets.
To date, WMAC has 25 active city and provincial distributors who undertake the responsibility of meeting and negotiating with the local government officials who are eagerly looking for new solutions to their growing waste disposal problems. As a result of numerous conditions, the Board believed that it was in the best interest of both parties, VuQo Int'l Beverages, Inc. and El Coco Wine and Spirits, Inc., as well as the shareholders of VuQo, to become separate individual entities so that they can optimize their respective business goals, research initiatives and capital requirements. It is for these reasons that the Board has authorized spin-off the assets of VuQo Int'l Beverages, Inc. and El Coco Wine and Spirits, Inc. to the shareholders of VuQo by way of a partial liquidating dividend. Shareholders of VuQo will become shareholders of the two spun-off corporations without any action required on their part. The record date, pay date and pay rate will be determined at a later time.
In a press release dated, December 13, 2012, we stated that El Coco Wines and Spirits Distillery and VuQo Beverages would be spun off as private entities. We would like to clarify and correct this statement. They will be spun off to the shareholders of VuQo, but not publicly traded at the time of the spin-off. In essence, they will be publicly held, but not publicly traded at the time of the spin-offs.
WMAC has continued to pursue possible sources of funding with great success. Current efforts are opening new opportunities that are leading to emerging long term contracts in key cities in Asia projecting $7.6 million a year. We also have prospects in countries like China, Japan and Africa. This year, our goal is to create systems called Build-Operate-Own Tipping fee. This new approach will establish 10 to 25 year term contracts, which will provide better economies of scale for the cities, and increased profits to VuQo. This will help reduce costs to cities by creating profit centers from their waste ensuring sustainability of high quality waste disposal. It is expected that after a year's operation, the early profits can be reflowed for a second installation and, therefore, a continuous follow-up and closing of the other cities and town MRCF (Materials Recovery with Composting Facility) projects. In reality, we are capable of entering 850 out of 1,700 cities in the Philippines, which, at this time, is estimated to amount to $897 million in revenue with a price per share value of above $10 tantamount to the industry's standard.
I am certain that by continuously adding that asset base to our company, we will get the attention of investors that may help VuQo stretch its target liquidity reaching squeeze-trigger price and influencing a considerable buy-in that could toss our stock up and increase our market cap. I am working hard on all fronts and doing everything that I can to make your investment in VUQO a successful one.
We look forward on updating you on our progress and would like to say a heartfelt thank you for your trust and support and look forward to communicating with you again soon.
CEO, Vuqo Holdings