Upgraded Infrastructure Complete and Preparing for Aggressive Product Promotion
PALM CITY, FL -- (MARKET WIRE) -- 10/07/08 -- GelStat Corporation (PINKSHEETS: GSAC), a consumer healthcare company primarily focused on the development and marketing of over-the-counter (OTC) products for the safe and effective treatment of pain and inflammation, is pleased to update shareholders on recent events.
To all of our valued shareholders and the investment community:
Since taking the helm of GelStat Corporation in June of 2008, the team at WSR Consulting, the Board of Directors, a number of other consultants and I have completed an overall assessment of the Company and have created and initiated a multi-faceted turnaround strategy. While we have encountered a number of challenges expected with any turnaround situation, we are pleased to report the core fundamentals are sound and we are more excited than ever about the Company's prospects.
The following projects are currently in the works or have recently been completed.
-- Communicated with the U.S. Security and Exchange Commission (SEC) regarding the Company's intention to complete and submit 10Ks for 2005, 2006 and 2007 as well as complete and submit 10Qs for the first, second and third quarters of 2006, 2007 and 2008. -- Expect to have completed financial statements from the last 10Q filed with the SEC for the period ending September of 2005 through the end of the third quarter of 2008 by the end of October 2008 and begin filing the aforementioned reports with the SEC shortly thereafter. -- Re-established distribution and product availability through drugstore.com and Amazon.com. -- Reduced fixed cash operating expenses to less than $15,000 per month. -- Established an audit committee led by Adrian Goldfarb. -- Appointed and retained Salberg and Company, P.A. as the Company's independent auditors. -- Had a random test performed on the existing inventory, which concluded that the existing inventory has virtually the same chemical composition that it had when it was manufactured, giving us a minimum of 18 months of additional shelf life. -- Performed a physical inventory audit on September 13, 2008 in our main warehouse. The count resulted in 942,120 boxes of GelStat Migraine four count and GelStat Migraine eight count collectively. The potential revenue from the sale of this inventory is between $3.24 million and $9.99 million depending on the sales channel. -- Appointed Ronnie Sue Goldfarb, R.N. as Chief Medical Compliance Officer -- Launched a new website on September 23, 2008 with a robust custom IT platform capable of supporting multiple affiliate programs including lead generations, email marketing campaigns and infomercial advertising. Please visit the new site at www.gelstat.com.
Moving forward we will focus on the following efforts:
-- Driving direct-to-consumer sales through cost per acquisition Internet campaigns, infomercials, television, radio and print advertising. -- Re-establishing relationships with wholesale customers and distribution channels, which had previously made significant orders. -- Regaining full compliance and resume trading on the Over-the-Counter Bulletin Board. -- Liquidating inventory to clean up the Company's balance sheet. -- Launching a number of new products. -- Pursuing accretive acquisitions or joint ventures to gain distribution, product lines or other synergistic opportunities that would provide positive cash flows.
In summary, we continue to receive testimonials raving about GelStat Migraine and witness significant reordering patterns across numerous customer bases. This, combined with the well documented statistics that there are approximately 30 million migraine suffers in the U.S. alone that are mostly unsatisfied with their existing Migraine treatment, leads us to believe that as an increasing number of Migraine suffers are introduced to the product, a meaningful portion will become consistent customers.
The key to short-term success is to keep expenses low while the Company gains market penetration and moves towards profitability. Over the intermediate term it is vital to minimize operating expenses and direct cash flows to effective advertising campaigns to capture market share and build brand recognition. Ultimately, the goal is to become a nationally recognized Company that offers healthy and effective alternatives to traditional treatments. The brand name and distribution pipeline would then be leveraged to launch additional products meeting our high standards.
We appreciate our shareholders continued support of the Company and will give further updates as we achieve progress on the goals outlined above.
Gerald N. Kieft CEO GelStat Corporation
ABOUT GELSTAT CORPORATION
GelStat Corporation is dedicated to providing safe and effective over-the-counter (OTC) treatments for pain and inflammation. GelStat's first product, GelStat Migraine, is sold through retail chain stores, independent retailers and pharmacies, and direct to consumer channels. The Company also has a suite of additional, effective healthcare products that address large consumer markets. GelStat(TM) Arthritis is the Company's second product to utilize GelStat's patent-pending formulation and is provided as a daily use, sublingual dissolving tablet. The Company has also developed "GelStat(TM) Sleep," and feedback from test samples have led us to believe that it performs well and is effective for its intended use. For more information, visit www.gelstat.com.
Safe Harbor Statement Under the Private Securities Litigation Act of 1995
With the exception of historical information, the matters discussed in this press release are forward-looking statements that involve a number of risks and uncertainties. The actual future results of GelStat could differ significantly from those statements. Factors that could cause actual results to differ materially include risks and uncertainties such as the inability to finance the company's operations or expansion, inability to hire and retain qualified personnel, changes in the general economic climate, including rising interest rate and unanticipated events such as terrorist activities. In some cases, you can identify forward-looking statements by terminology such as "may," "will," "should," "expect," "plan," "anticipate," "believe," "estimate," "predict," "potential," or "continue," the negative of such terms, or other comparable terminology. These statements are only predictions. Although we believe that the expectations reflected in the forward-looking statements are reasonable, such statements should not be regarded as a representation by the Company, or any other person, that such forward-looking statements will be achieved. We undertake no duty to update any of the forward-looking statements, whether as a result of new information, future events or otherwise. In light of the foregoing, readers are cautioned not to place undue reliance on such forward-looking statements. For further risk factors, please review our SEC filings.
FOR ADDITIONAL INFORMATION CONTACT: Wall Street Resources, Inc. 772-219-7525 www.wallstreetresources.net