Washington, DC, July 12, 2012 (GLOBE NEWSWIRE) -- Ariel Way, Inc., (OTCPK: AWYI) www.arielway.com Chairman, President and CEO Arne Dunhem issued the following Letter to Shareholders:
Dear Ariel Way Shareholders:
On July 10, 2012, Ariel Way, Inc. submitted an Offer of Settlement that was accepted by the Securities and Exchange Commission (SEC) for the purpose of settlement of proceedings initiated by SEC against Ariel Way on May 3, 2012. On the basis of an Order by SEC and Ariel Way's consent, the SEC found that Ariel Way had failed to comply with Exchange Act Section 13(a) and Rules 13a-1 and 13a-13 thereunder because it had not filed any periodic reports with the SEC since the period ended June 30, 2008. In view of the foregoing, the SEC deemed it necessary and appropriate for the protection of investors to impose the sanctions specified in Ariel Way's offer. Accordingly, it was on July 11, 2012 ordered by the SEC that: Pursuant to Section 12(j) of the Exchange Act, the registration of each class of Ariel Way's securities registered pursuant to Exchange Act Section 12 was revoked.
The Management of the Company believes that the offer to the SEC was in the best interest of the investors and the Shareholders of the Company. We realize it is a very disappointing development, but we would like to look at this as an opportunity for the Company to have a new fresh start. This certainly does not mean that the Company stops operating, rather the opposite. We believe this opens up new possibilities and opportunities going forward.
The Company has engaged Michael Studer CPA P.C. to conduct audits of the Company's financial statements for the years 2008, 2009, 2010 and 2011 and these audits are underway. As soon as these audits have been fully completed, we intend to file a Form 10 Registration Statement with SEC which we understand will go effective automatically within 60 days. The Form 10 will include audited financial information for the last two years (2010 and 2011). After submitting Form 10 we intend to file a Form 211 with FINRA to commence trading again. The SEC and FINRA may have additional questions and comments which will require a response from the Company. This process can take some time therefore we cannot give an exact time for the commencement of the trading. It is Management's intention not to return to the OTC Pink but to have Ariel Way's shares begin trading immediately on the OTCBB and/or OTCQB and later on the OTCQX.
The shares of Ariel Way stock that you currently own have value and will continue to have value when the Company's shares commence trading again. Upon the commencement of trading of our shares, you will be able to trade your shares as before.
We intend to improve our financial structure by re-capitalizing the Company prior to filing the Form 10. We also intend to change the Company's fiscal year end from September 30 to December 31.
While we fully understand the concerns about re-capitalizing our financial structure in general, the Management strongly believes that the Company's business development requires and justifies this step and that it will be to the benefit of all of the Company's investors and Shareholders in the mid and long term.
As to operations, we expect the number of orders and contracts for GovBuys to continue to increase through sales to the U.S. Federal Government. In addition, the Company expects to add new vendors that have products and services that can be resold to the U.S. Federal Government. Some of these new vendors provide vital healthcare IT solutions that may be of great interest to the U.S. Federal Government. We believe that healthcare is a rapidly growing business as the U. S. Federal Government continues to increase healthcare spending within the Department of Veterans Affairs. The Company has also initiated new teaming agreements with several IT services companies to provide IT services to the U.S. Federal Government. These new service offerings will greatly improve our gross margins and net income.
Lastly, I would like to thank all of our dedicated Shareholders for their continued support. The Management team is excited about the future of Ariel Way and we believe that these recent events are the catalyst to a new era for Ariel Way.
There will be a "Chat Room" discussion on our web-site www.arielway.com under the web-page "Connect With the CEO" on Friday 13, 2012 at 9.00 am EDT.
Respectfully,
Arne Dunhem
Chairman, President and CEO
Ariel Way, Inc.
About Ariel Way, Inc.
Ariel Way, Inc., a Florida corporation ("Ariel Way" or the "Company"), is a technology and services company for global communications and IT products and services and related solutions and technologies with sales focused on U.S. Federal, State and Local Governments and corporate businesses. The Company is focused on developing innovative communications and IT services and technologies, acquiring and growing profitable communications and IT services and products companies and creating strategic alliances with companies in complementary product lines and service industries.
More information about Ariel Way can be found on the web at http://www.arielway.com.
Forward-Looking Statements: Certain of the statements contained herein may be, within the meaning of the federal securities laws, "forward-looking statements," which are subject to risks and uncertainties that could cause actual results to differ materially from those described in the forward-looking statements. Such forward-looking statements involve known and unknown risks, uncertainties and other factors that may cause the actual results, performance or achievements of the Company to be materially different from any future results, performance or achievements expressed or implied by such forward-looking statements. See the Company's latest Form 10-K for a discussion of such risks, uncertainties and other factors. Any forward-looking statements are made pursuant to the Private Securities Litigation Reform Act of 1995 and, as such, speak only as of the date made. These forward-looking statements are based on management's expectations as of the date hereof, and the Company does not undertake any responsibility to update any of these statements in the future.