To provide a little additional clarity on the past and current relationship between Embark Holdings, Inc. and the start-up indy pro American West Baseball League, we are posting below a recent letter to Embark shareholders from the company’s new CEO Daniel Amato. Meanwhile, the newly launched Las Cruces (NM) Sun Rays are confidently preparing for their inaugural season in the City of Crosses. Read more here.
Dear Valued Embark Holdings Shareholder,
I want to personally thank you for being an Embark Holdings, Inc. shareholder. As I begin this journey as the new leader of EMBK and Muscle Warfare, Inc., I think it’s important to communicate to our shareholders and the world our progress and focus in all aspects of the business. It’s my goal to prove that the talents I bring to the table will lead to success for all of us and those that believe will benefit. We are excited about the future of our Company and this letter outlines our vision and plans for the future.
Embark Holdings, Inc. was founded in 1985 and is headquartered in Mission Viejo, California, United States, our business model was to research, evaluate, and acquire profitable private firms in the business segments of entertainment, technology, medical, energy, and business services.
By providing the financial and human capital necessary to deal with the overwhelming administrative, planning, governance, compliance, and regulatory issues that abound, our partners can focus their energy and flourish.
Recently we acquired 100% of Muscle Warfare, Inc. [website address removed], a company that is a cutting edge sports nutrition manufacturer that is passionately driven to create and distribute the absolute highest quality products in the marketplace. Every product we develop has been forged with great experience and focus on maximizing product efficacy for real world results.
Furthermore, Muscle Warfare products are rigorously tested by top testing labs to help insure them free of banned substances. We are truly committed to helping all athletes achieve and surpass their highest goals and potential.
Over the past two years EMBK has gone through name changes, reverse splits and the acquisition or start-up of new businesses, which many shareholders would say that there is no direction and at times it did seem to look that way. And as one would expect, our stock price suffered too. Embark Holdings, Inc. filed for a reverse split that went effective February 14, 2013 at a 1 for 2000 split and changed the symbol to better reflect the name of Embark Holdings, Inc. to EMBK. I will address below how we will proactively be addressing our future at Embark Holdings, Inc and Muscle Warfare, Inc., which we believe should result in better financial results and a higher stock price as we move forward. I joined EMBK because I believe that the company is in a position to really advance its presence as a public entity and the moves that have been made recently add to the foundation of coming successes.
Embark Holdings, Inc. has initiated a business strategy that will take us away from the holding company that invests in and reviews many business models such as start-ups, distressed and turn around companies in the entertainment, technology, and energy and business services. EMBK will focus on companies in the sports nutrition industry such as Muscle Warfare, Inc. that are leaders, have generated millions of dollars in revenues, and those that have an experienced executive management staff that can continue to grow the business to the next level.
As you also are probably aware, in the mid 2012 we completed an acquisition of ERA, a sports management agency, and started AWBL a minor professional baseball league. But at this time, with our more focused approach to stay within our management expertise and experience, we have decided to spend our time and effort in a much more lucrative industry, leveraging our knowledge of what helps athletes progress. As a result, we have decided to no longer be involved in the two companies listed above and wish those organizations the best of luck.
I have recently hired a few companies to help us with compliance and communication strategies for EMBK. We expect to have our listing upgraded in the next few months from “limited status” to “current status” and are currently gathering all documentation and paid all fees required by the OTC Markets to complete the process. There are several benefits to being listed on the OTC Markets as a “current” company, but the most important is the ability to seek investment in the company, which will allow us to grow and become a fully reporting company in the near future.
With EMBK focused on the Sports Nutrition Market we think it’s important for you to understand the history of the industry and Muscle Warfare, Inc.;
Sports Nutrition: Industry Outlook
The Sports Nutrition Market is among the fastest and was one of the most resilient markets since the 2007 market downturn, experiencing impressive growth during this entire period. This strong and rapid market growth is forecasted by experts to continue for years to come due to continued and growing use and promotion of these products by elite professional athletes and bodybuilders. In addition, the amateur athlete market continues to expand and grow which is increasing the use of these products; this segment is expected to exceed $6 billion by 2018 according to the most recent Consumer Trend Reports.
Currently, GNC Holdings, Inc GNC -1.52% is the world’s largest retailer of sports nutrition products in the US, they have indicated that the sports nutrition segment does approximately $3.2 billion dollars in business annually, and they expect it to reach $4.3 billion by 2015 (GNC analysts expect an approximate 8% growth rate in this niche market in 2013). There is no expected slowdown to the explosive growth in the sports nutrition market, as stated above in the Consumer Trends report, which is also backed by a food and health survey from the International Food Information Council. Accordingly, it is because more people are adopting healthier lifestyles which utilize these products and the market for new products is steadily increasing as these products are being created to be used in a convenient manner by consumers.
Muscle Warfare Current Sales & Distribution
Muscle Warfare has reached approximately $2 million in sales in 2011. However, in 2012 we performed a calculated pull back of sales distribution to successfully navigate an industry wide FDA notice on the ingredient DMAA, which restricted sales industry wide. We expected to hit 3-4 Million in sales in 2012 with strong profits. Instead, we decided to utilize this time to carefully rebrand our products to be banned substance free and create formulations that were even more effective. During this process we had intentionally slowed sales to rebrand the company, upgrade our look and presentation and take our overall quality standards to the highest level.
We are pleased with this strategy as it has worked; we are now distributing product in all 550+ Vitamin Shoppe VSI -1.34% stores Nationwide. Also, we have a very strong partnership with the largest independent sports nutrition distributor in the U.S.; along with many large scale international clients, which we believe will help continue our growth trajectory.
Our next major objective for 2013 is to achieve success through negotiating other distribution contracts and store launches. We are in the process of solidifying many substantial opportunities that can come to fruition during the second quarter and beyond.
Future Goals and Vision
The Muscle Warfare team is focused on continuing to develop the most effective sports nutrition products of the highest quality and distribute them effectively and efficiently worldwide. We have gained many years of experience watching various companies achieve top tier levels of sales and performance. During the past 13 years, we have developed many of our own groundbreaking marketing innovations, specialized formulations and introduced key ingredients in the sports nutrition space. Mr. Amato is well recognized as a leader in product innovation and development. We will continue this passion for result orientated products and inventions that yield unmatched results for all athletes.
Our growth goals are to quickly become a globally recognized brand and leader in the sports nutrition field. As stated earlier, our goal is to achieve success through adding more distribution channels, we feel that adding more SKU’s to existing relationships, such as Vitamin Shoppes stores and others, will further enhance our growth for this year. Additionally, our focus is to have substantial and continually increasing presence in national and regional gym chains, regional and local sports nutrition specialty shops, along with strong placement in all online web retailers with great product placement in every distribution channel. Global growth plans, which encompass gaining a substantial share in this expanding market has already been a strong objective. Muscle Warfare is already recognized globally and widely distributed in major markets such as Australia, The UK, in Scandinavia, Brazil, The Middle East, Russia and many other key International regions. We are currently developing a high traffic website and online marketing programs that will kick-off in short order. Ultimately, this will lead to high brand awareness and increasing global sales once our marketing engine is operating at full capacity.
We have a proprietary business plan to utilize proven industry tactics used by several notable competitors to obtain quick success in the market, with minimal investment. We plan to make efficient use of funds raised to quickly grow sales and profits substantially. We plan to use investment capital very wisely, limiting excessive salaries to employees, controlling operational costs by obtaining best possible terms and pricing from manufacturers, not overpaying and utilizing endorsements. Only specialized, use of select athletes to endorse our products will be considered and negotiated wisely. We are a business with a plan, not to burn through money, just simply use it in an efficient manner that only comes from years of insight, industry study and opportunity recognition. With proper funding, we anticipate to dramatically outperform both growth and profitability of similar companies in the space such.
Our Goals for Embark Holdings, Inc.
— Complete OTC Markets compliance to move from “Limited” to “Current” Status
— Raise capital through investment structures that are beneficial to current shareholders
— Communicate to the shareholders and keep them up to date on our progress
— Only acquire companies that generate millions in revenue and are profitable or close to becoming profitable which fit our corporate profile (i.e. suite of products enhance and grow our brands and can “plug and play” within our existing management infrastructure)
— Assemble an experienced Board of Directors, additions to Management and Sales Personnel
— Focus our efforts on branding and adding to our distribution channels which will add to our revenue growth
— Continue to focus our development efforts to have the best quality products with the highest margins
— Develop a results oriented corporate culture
Again, I thank you for being a shareholder and for your support for EMBK in the past. I am here to say that the future is bright and I am confident that my extensive experience in Sports Nutrition over the last 13 years will add to shareholder value and the growth of our company. .