Wednesday, December 7, 2011

An Update from Wayne D. King - President and CEO, MOP Environmental Solutions, Inc.

December 7, 2011

Season’s greetings from MOP Environmental Solutions, Inc.!

This letter is intended to provide a bit of an update on the comings and goings at MOP. In the month and a half since Charlie Diamond’s passing we have been putting our best effort forward to make the transition to a new leadership team, while at the same time anticipating the addition of other members of the MOP team that can help us expand our sales and the mission of MOP.

All of this has happened in an atmosphere where our ability to communicate has been hobbled by two important realities:

1. The 15c2-11 process that moves MOP to a higher reporting level where shareholder value is enhanced by a higher number of Market Makers and a higher level of transparency ostensibly generating enhanced public confidence. Ironically, the effort to become more transparent requires a “low-transparency” process that minimizes the amount of reported news (each of which generates added questions from FNRA ).

2. Attempts to reconstruct as much of Charlie Diamond’s historic knowledge of the company workings as we possibly could. As you might imagine, more than four decades of knowledge about MOP and the Bath plant was bundled up inside that marvelous oversized brain of Charlie’s. Charlie kept careful records of the things that were required by law and rule so understanding those things were “just” a matter of reviewing an extensive number of notebooks. However, the more esoteric and non-statutory collections of information were not quite so simple. . . (now where did Charlie keep the combination to that safe that holds the recipe for MOP’s “secret sauce”? Who was the contractor that developed the hydro Cavitation solution with Charlie? That solution can probably yield an income stream of more than a million dollars a year for MOP!)

I’m pleased to report that we are reasonably confident that the urgent matters with respect to Charlies historic knowledge seem to have been resolved: left twice to 18, right . . . (NOW you didn’t think we were going to give you the combination did you?); Ryan Vizena helped Charlie develop the Cavitation solution and yes we think it can generate some attractive profits for MOP.

The 15c2-11process is a bit more of a challenge. We find ourselves faced with the Hobesian choice of continuing to effort the application while creating a seemingly endless process by returning to a status quo ante or imposing a news blackout, under the worst case scenario, that has a chance of resolving the process successfully. We have decided on the former. It is clear to us that keeping some level of news about the company flowing is too important to continuing confidence, even if it means that achieving the 15c2-11 status takes considerably longer. This decision represents a reversal of a “board” decision by Charles Diamond. We suspect it will not be the last.

With respect to moving ahead I would like to bring you up to date on a few of the projects that some shareholders have been enquiring about. In the coming weeks we will be bringing you additional information through our soon to be added public relations and communications agency: EVP Creative (www.evpcreative.com)

We continue to be very optimistic about many of our international projects, though some have presented enormous challenges related to state corruption, bureaucratic shuffling and re-shuffling and the challenges imposed by a worldwide recession.

The Saudi Team is currently interviewing and negotiating with a large distribution company. Their website indicates that they are a registered trading and contracting company with the country's industry leaders such as Saudi Aramco, SABIC, Saudi Electricity Company and others. Dr. Nayfeh, president of MOP SA has told us that they will be making a decision fairly soon about representing MOP.

A total of four orders have come from MOP’s Ecuadoran Distributor and a recent conversation with President Fernando Banalcazar confirmed that he is aggressively developing his market and that he expects the New Year to bring increased sales of MOP. Banalcazar has put together a strong consortium of Oil Spill Response and product/service companies to bid on a large project. His innovative approaches give us a great deal of confidence in what lies ahead with him.

EGS continues its efforts with C-Level management of firms from Nigeria, Ghana and Guinea, West Africa, to Brazil, New Zealand and other countries. As you might imagine, working at this level takes longer but yields bigger sales over longer periods of time. Jim has expressed confidence that his efforts will yield results soon.

The purchase of the Groveton Mill remains on track and we have already had more than 5 inquiries from potential tenants and joint ventures. We are optimistic that a closing will take place during t5he month of January and then MOP will have adequate operational funds to launch an aggressive marketing effort. The Groveton location will also give us the opportunity to register MOP as a HubZone business, thus qualifying us for a 3% set aside with federal Prime Contractors and procurement agents. The funding for this project is all debt financing and will not dilute shareholder equity.

Very soon we will have more information to report including an update on some new patents being filed and other alliances and contracts.

Sincerely,

Wayne D. King

CEO and President

MOP Environmental Solutions, Inc.

1 comment:

  1. Hello Mr. King: Your 12/7/11 update is most welcome and please continue your timely news items. I have long been a stock holder and my confidence in MOP has be rewarded and reassured with this update. I have added to my holdings today. mc

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