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Message from the CEO – 2014

Dr-Marco-MoranGreetings,

First, on this Veteran’s Day which honors those who have served in the U.S. Armed Forces, I’d like to thank the brave men and women who have and continue to serve our Country and protect our freedoms.

As a Veteran myself, I have witnessed firsthand the sacrifices military personnel and their families make every day. I carry that experience and spirit with me into Corporate America as I continue to lead through service.

I’d also like to thank all of our customers, employees, shareholders, business partners and vendors for their continued support and all who progressively play such an important role in the ongoing success of Dewmar International BMC, Inc. (OTCPink: DEWM).

veterans_day

The year 2014 has been transformative for the Company and we have never been better positioned for sustained growth on several fronts. At the beginning of the year, I outlined key goals and objectives for the business and made some commitments to the investor community regarding toxic funding that we have upheld.

As we push towards a strong finish for the fiscal year, I’d like to provide an update to all our shareholders on the business’ progress as it relates to stated 2014 goals and an outlook on exciting developments that will allow us to finish the year strong and translate our business success into increased shareholder value. 

Highlights for the year so far have included:

  • As previously reported, the Company successfully managed through a series of ‘toxic’ financing facilities. The Company has no new or outstanding toxic financing facilities. The ability to be more selective about capital sources and frequency of financing has been the direct result of implemented cost controls and increased sales.
  • Identified and hired Malone Bailey, an accounting firm that is one of only nine (9) in the world that has more than 100 SEC filers as customers according to AuditAnalytics.com. Malone Bailey is currently conducting annual and quarterly audits of the Company’s financial statements and applicable SEC filings. This is particularly important as we: (1) move beyond toxic funding sources towards longer term more sophisticated investors, (2) reassure shareholders of the validity of our internal cost controls & financial results, and (3) structure the business financials to prepare for organic growth and future acquisitions.

 

Malone-Bailey

  • Dewmar International has contracted with a HACCP certified food manufacturer to produce brownies. The manufacturer’s capacity has been confirmed and is in line with product sales projections to insure smooth product launch and inventory supply. The bakery provides documented procedures for production, packaging and helps to establish testing programs to ensure quality production.
  • I have made key additions to the executive team and support staff which will be reported in upcoming press releases. These well-qualified individuals will help propel Dewmar International’s growth, improve operational efficiency and free my time to focus on maximizing shareholder value and long term business expansion.
  • The Company, working with experienced FDA consultants, submitted the product labeling for Lean Slow Motion Potion which includes mandatory supplement panel updates per request of food and beverage regulatory officials. As a result, consumers should expect new product branding designs for Slow Motion Potion in the near future.
  • Dewmar International is currently working with the retired NFL Players Association in developing programs to assist existing and retired NFL players with monetizing their branded products and celebrity status. The objective is to utilize the Company’s existing, retail industry relationships and resource platform to introduce NFLPA players and products to new national and international markets, as well as helping to pair NFLPA Athletes with existing brands needing professional endorsement.
  • During the past 52 weeks, more than 20 billion shares of Dewmar International have traded over the OTC; averaging more than 10 million shares daily. This vibrant activity reflects the level of interest Dewmar International continues to command in the investor market.
  • During 2014, Dewmar International has increased year-over-year sales while maintaining the company’s traditionally high, gross profit margins. Detailed financial results will be provided with upcoming SEC filings.logo-SDVOB
  • In February 2014, Dr. Charles Achane, the President of the Louisiana Veterans Business Outreach Center, certified Dewmar International as an official Service Disabled, Veteran Owned Business.  This gives the federal government and major corporations such as Walmart, a greater incentive to conduct business with us.
  • Lifestyle elements of the Lean Slow Motion Potion™ brand continue to appear in current pop culture with the latest shout-out going to Juicy J, the Oscar award winning artist who raps about Purp, Yella, and Lean in his hit song “If It Ain’t”.
  • As a pharmaceutical scientist, I was honored to be asked by Texas A&M University to present at their Functional Beverage Short Course. Presentation topics included: Melatonin dosage and relaxation, beverage development process, beverage taste composition, functional food R&D, and brand building tips. The opportunity to interact with other scientists with a focus on functional foods, beverages and nutraceuticals was extremely rewarding. Stay tuned, there is more to come regarding the clinical research and product development Dewmar International is doing in the field of nutraceuticals as well as the broader health & wellness market.

Texas-A&M_functional-beverage

  •  I was appointed as Chair of the Mississippi District Export Council by the U.S. Commercial Services Division of the U.S. Department of Commerce to a new 4 year term to oversee the Council’s effort to promote Trade and Commerce. This appointment has afforded me the opportunity to visit with federal officials, White House appointees and foreign dignitaries both in D.C. and across the globe in order to better promote the agenda of our Company to help improve the U.S. economy by first enhancing revenues for the state of Mississippi. Stay tuned to hear much more exciting news about my many interactions as I get acclimated with this new position that I am so honored to be assigned.
  • Dewmar International has partnered with a third party business that will assist us in achieving our U.S. Veterans and Government sales objectives. The business effort here  is to help introduce new brands created or licensed by Veterans to our existing retail network, and to pursue contracts with the military and/or government through our SAM’s (System for Awards Management) registration. The joint venture is managed by a certified service-disabled veteran that proudly served during OIF 3 in the U.S. Army, 467 Engineering Battalion Unit performing IED sweeps during the War in Iraq.

 

Walmart Highlights:

made-in-usa-open-callIn 2013, Dewmar International became a registered National Supplier which gives us the ability to add any product SKU to any of Walmart’s over 6,000 U.S. based stores. As previously reported, based on exceeding initial sales projections, our flagship brand – Lean Slow Motion Potion™ (also Lean SMP™) was expanded to additional stores during the fall of 2014 and our placement contract with Walmart for Lean SMP™ was renewed for an additional twelve (12) month period earlier this year.

As a result of our continued success and willingness to learn how to provide Walmart with quality service in addition to quality products, I was invited to Bentonville to discuss marketing and merchandizing concepts to support the Lean SMP™ expansion. These discussions led to Dewmar International being asked by Walmart to introduce additional, innovative brands to a variety of category buyers. This exciting opportunity has led to several developments; below are some Walmart related facts and activities I think shareholders should know about:

      • Over the next 10 years, Walmart has committed to spend an additional $250 billion on U.S. made products as part of its domestic manufacturing and American jobs initiative.
      • As a National Supplier for Walmart Dewmar International has the unique soma trifecta benefit  of being 1) Minority owned, 2) Veteran disabled owned and 3) a U.S. based manufacturer, providing Walmart a great incentive to conduct business with us.
      • Dewmar International was invited and participated in several Walmart supplier events:

1. April 29, 2014 – Sam’s Club Supplier Diversity Summit in Arkansas.
2. July 8, 2014 – Made in USA “Open Call” Event in Arkansas.
3. Aug 14, 2014 – U.S. Manufacturing Summit in Denver, Colorado.

US-Manufacturing-Summit

The stage at Walmart’s U.S. Manufacturing Summit in Denver, CO.

      • Marco-Moran-at-Wamart-Summit

        Dr. Marco Moran focused and highly engaged with Dewmar clients, Chris Zavala of Yellow Jacket and Mark Spoone, CEO of Canna Energy in Bentonville, AR at the Made in USA buyers’ meetings.

        Dewmar International signed an exclusive license agreement with CannaLife for national distribution into Walmart and Sam’s Club stores to introduce its three all-natural flavors of hemp energy drinks.

      • Dewmar International signed an exclusive license agreement with Chill Drinks for national distribution into Walmart and Sam’s Club stores to introduce its line of hemp-infused teas and energy drinks.
      • Dewmar International introduced Yellow JacketTM iPhone stun-gun/charger case to Walmart for both online and in-store product placement for 2014 and 2015.
      • Dewmar International signed a license agreement with Halal Processing Solutions to introduce their entire line of Halal Foods for proposed distribution into Walmart and Sam’s Club stores.
      • Dewmar International signed an exclusive license agreement with Chapman Products for their Grandma’s Secret Potion® hair care products to introduce the brand for national distribution into Walmart and Sam’s Club stores. Grandma’s Secret Potion® hair care products are infused with hempseed oil which has been clinically proven to promote hair growth, strengthen roots and provide relief from dandruff.
      • Dewmar International continues to conduct planning sessions to introduce several new product lines into Walmart. Many of these products are targeted towards needs in the health and wellness category where we can utilize our pharmaceutical R&D capabilities to introduce innovative concepts to help fill Consumer demand needs in Walmart and other major retailers’ pharmacy OTC departments.

 

Industrial Hemp Highlights

Dewmar International formed the United States Hemp Corporation, LLC as a subsidiary to become the best of breed incubator of premier hemp brands and products in the USA. As a part of the formation of the U.S. Hemp Corporation, Dewmar opened an office in the RiNo District in Denver, CO. This area has quickly become a national hub for the burgeoning Cannabis industry. The innovative atmosphere in RiNo reminds me of the startup culture in Silicon Valley. To be sure, Colorado is leading the country – in both policy and consumer goods – in the Cannabis vertical.

Jared-Polis-Hemp-Event

Congressman Jared Polis speaking at the Industrial Hemp Awards and Festival near Boulder, CO.

The U.S. Hemp Corporation has retained a team of cannabidiol, hemp and natural food experts to lead R&D and product development efforts in this growing market. To date, more than 20 states and D.C. have enacted laws to legalize medical cannabis.

The first-to-mark product from the incubator is an exciting re-launch of a relaxation brownie eligible for sale in all 50 states.  We are currently developing a website where consumers will be able to purchase hemp products, as well as access consumer information about industrial hemp.

The U.S. Hemp Corporation is a proud member of the Rocky Mountain Hemp Association and participated in the following industrial hemp events and conferences.

 

Conclusion:

Dewmar prides itself on focusing on the long term success of the Company. As evidenced by our several accomplishments during the year, the entire Team here at Dewmar International has been working vigorously towards delivering results against our 2014 strategic plan. With the Team’s primary focus on tactical execution, procedural functions such as formal reporting has been delayed. Again, we’ve addressed this by hiring a highly reputable audit firm with a Top 10 national ranking in SEC filing experience (as measured by total SEC registrants). We anticipate filing our 2013 annual report by end-of-year and our 2014 quarterly filings shortly thereafter; thus, satisfying OTC Exchange “current information” reporting requirements (view pdf).

I lead by example and I’m one of the hardest working CEO’s in the business committed to the long term growth and success of Dewmar International. In fact, as I have reported to FINRA, since the inception of Dewmar International, I haven’t sold any shares of company stock. Moreover, all of my issued shares are still in certificate form which means they’re relatively illiquid for day-to-day trading. My policy to maintain the shares in certificate form is reflective of my confidence in the future, long term success of the company and also helps to align my interests and the interests of the business with that of our long term shareholders.

Dewmar International continues to voluntarily provide information to FINRA and other stock market regulating agencies to validate the information we share with the investor community.

Forward looking, Dewmar International is well positioned for accelerated growth in niche consumer markets as well as the emerging cannabis industry which has been described by the Wall Street Journal as “exploding with opportunity.”

With regard to growth potential within Consumer markets, I recently attended the 2014 NMSDC Conference in Orlando, Florida. During the conference, I had the opportunity to meet one-on-one with Executives from big box retailers; namely, Walmart, Kroger, Home Depot and Target. Many of these meetings were continuations of ongoing discussions that have intensified given the success and expansion of Lean SMP™ along with our demonstrated brand management capabilities and national vendor status as a minority/veteran-disabled owned business. All of the big-box retailers listed above requested post-conference follow up and active communications with Dewmar International to further discussions regarding placement opportunities within their respective stores.

In closing, I’d like to again thank our U.S. Veterans, Customers, Employees, Shareholders, Business Partners, Vendors and all who progressively play such an important role in the ongoing success of Dewmar International BMC, Inc. We look forward to– and count on your continued support.
Best Regards,

Dr. Marco Moran, President & CEO

November 11, 2014 (updated February 23, 2015)

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Safe Harbor Statement This message may include predictions, estimates, opinions or other information that might be considered forward-looking. While these forward-looking statements represent our current judgment on what the future holds, they are subject to risks and uncertainties that could cause actual results to differ materially. Among others, these risks include the failure to meet schedule or performance requirements of the Company’s contracts, the Company’s liquidity position, the Company’s ability to obtain new contracts, the emergence of competitors with greater financial resources, general economic conditions and the impact of competitive pricing. In light of these uncertainties, you are cautioned not to place undue reliance on these forward-looking statements.

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