This update is to provide all parties interested with a brief historical review of TRTB as well as current and future plans.
The public entity known as True2Beauty, was originally incorporated in the State of Nevada on December 11, 2006 as Burrow Mining, Inc. On May 10, 2010, the Company changed its name to True 2 Beauty and shifted its focus to the health and beauty sector. In September 2010, a privately held entity had its assets purchased by TRTB. The intent was to expand distribution of two natural supplements, Libigrow and Libigirl, which had been sold in convenience stores across America for approximately five years. True2Beauty (Burrow Mining) had discontinued filing audited returns as of the 2nd quarter of fiscal 2010 as it was without the required funds to do so. After the asset purchase, the Company had approximately 225,000,000 shares outstanding, of which almost 150,000,000 was in the hands of the previous owners of the assets sold to True2Beauty. From the beginning of the asset purchase through the latter part of 2011, the Company filed its quarterly and yearly financials with the assistance of an outside accounting firm, in a manner consistent with GAAP standards and with the intention of doing a look back audit for the prior two years of the privately held entity that sold its assets to TRTB, as well as the audit for all filings for TRTB to make it current and fully reporting. At the time of the Asset purchase, approximately 40,000,000 shares of the 225,000,000 were in the public float, the balance of the shares were not registered and therefore had restrictions regarding their sale.
In December 2011, the Directors of the company chose to change the direction of the company, selling the assets purchased in September 2010 to one of the original owners of the company that sold the assets to True2Beauty.
Part of this change in direction for the Company included a capital restructuring with a 1 for 100 reverse split of all outstanding shares, providing the Company with a new capital structure to help raise capital. The new management believed it would be in the interest of all shareholders if the Company could explore possibilities that could economically be exploited to create value. At this time, management had no economic stake in TRTB, no salaries, no stock ownership, and a small amount of equity left for all shareholders in some remaining inventory of a curling iron.
A decision was made to pursue opportunities that could best utilize management’s skill set and require relatively small amounts of capital. Management intended to create value through a disciplined attempt to market unique proprietary beauty products to drug, mass, and online retailers. To enable this opportunity, the Company embarked on a capital raise, with the goal of securing up to $1,000,000 in equity to help launch these products. Without having a fully reporting company, this hindered the ability to raise such a large amount of capital on friendly terms. During the course of this raise, in early 2012, management was presented with an opportunity to invest in a startup that required a significantly lower amount of capital. This new opportunity would require management’s experience in developing a successful television advertising campaign, as well as utilizing relationships in the entertainment industry, to help develop the new business. Over the course of a few months of due diligence, it was decided the Company would be better suited to create its own version of this business concept, with the intention of creating value for the shareholders of TRTB, at a much less dilutive impact. This new opportunity would require less capital than previously planned for the beauty products.
The Company reached out to the investment community, as well as some of the larger preexisting qualified investors in TRTB, to gauge their interest in participating in the capital raise necessary to develop the new business model. The concept was to create an online retail platform that could be disruptive to a number of highly successful e-commerce operations; with the added bonus it could provide the basis for launching some of our beauty products in the future.
As of February 2013, the Company has raised approximately $300,000.00. A number of the largest shareholders in the Company decided to commit to this financing, we owe a debt of gratitude to these previous shareholders and the new investors that joined them in providing enough funds to bring the product to market. Management appreciates their confidence and support for helping to attempt to build something competitive in the fast developing online retail landscape.
The result is True2Bid, a uniquely formulated method for customers to actively participate in the process of bidding to win products, through fast paced auctions. The goal has been to create an entertaining and value driven model that competes with EBay, Q Bids, and many daily sales sites. The site was launched at the end of April, 2013, featuring a number of unique tools designed to guarantee users value. Every attempt has been made to distance the business model from penny auction sites. True2Bid is based upon a fundamental difference, to ensure users can always pay less than retail for goods, and enjoy the challenge of trying to win auctions. There is no reason for any user to ever spend money on our site and receive nothing in return. The site has been live for approximately 10 months, with significant results considering no attempt has been made to market the site. The experience of running a 24/7 live auction site has been fruitful, as management has gained significant knowledge about the intricacies of auctions and customer involvement. As a result, the company is now moving forward with a more targeted approach to it’s audience, with a new site called BetUGetIt. This site, which replaces True2Bid, is built on a completely new technology platform, and is considerably more robust and scalable. The BetU platform will be used as a base for different product and demographic verticals. Once BetUGetIt achieves positive cash flow, the next version of the BetU brand will launch, targeting women ages 21-45. The new sites will offer rewards programs, and include blogs about interesting related topics and charitable auctions from celebrities.
True2Bid has provided a wealth of knowledge about the auction business, BetUGetIt will be able to take advantage of this knowledge and provide a new and exciting shopping experience for everyone. The product focus for BetUGetIt will include sports collectables, memorabilia, event tickets, and much more. Users will always feel as if they received value as all product auctions will allow users to apply the value of their bids toward the purchase of a deeply discounted item, if they do not win an auction.
To further create value for our shareholders, we have decided the way to move forward is by spinning off these newly created entities, into their own public entity. Therefore, in the coming months we intend to file an S-1 Registration Statement with the SEC to create a separate entity, with all of the assets and liabilities of the new entities, and none of the assets and liabilities of True2Beauty. All shareholders of TRTB on the record date of this transaction will receive a one for one share in the new entity. All shareholders on the record date will still own their original shares in TRTB, although the only assets remaining in TRTB will be the public entity itself. To effect this transaction, the Company will be required to file audits for the previous two years of TRTB, a task that we believe is much more achievable than 4 years of historic audits. At the time of the transaction, management will determine if it intends to continue filing periodic reports for TRTB. The reason for continuing the filings would be to continue to provide potential value for the shareholders of record at the time of the spinoff. By continuing the filings, TRTB could be used as an incubator for other business opportunities, similar to True2Bid, which could be spun off at a later date. However, to achieve this, capital would need to be raised into the TRTB entity after True2Bid was spun off.
We fully understand the disappointment of the shareholders in TRTB that invested in the Company prior to the sale of the assets of the supplements. We too share in that disappointment. Our hope is to create value that can provide shareholders with a return on their investment. If you feel you need a more comprehensive understanding of how the company is moving forward, please feel free to contact us. We will dedicate as much time and energy possible to foster a better relationship with the investment community. As the CEO, it is my responsibility to create value for shareholders; I am open to suggestions at any time.
Further, the Company has terminated the shares that were received by the original sellers of the assets of Libigrow and Libigirl, in exchange for a release of indebtedness from the sale of those assets in 2011. These shares have been put back into the Company’s treasury. Also, a previous financing from 2011 that was potentially dilutive to all shareholders has been terminated in a mutually agreeable fashion, and the shares have been returned to the Company’s treasury.
We hope this level of transparency can help to create a sense of trust between new management and all shareholders. In the future, we will attempt to disclose as much information as deemed appropriate, to help provide existing and potential shareholders the comfort we are working for you, not against you. As a new and hopefully disruptive online retail platform, we intend to keep some of our initial operations confidential, except as required in quarterly and annual filings and if necessary to promote the business or share with the investment community our development. We will be reviewing the metrics from our new business model and how we can share this information in a timely and valued manner. Once the business performance can be fully analyzed by management and outside accountants, we will better understand the metrics that will be meaningful on a forward-looking basis for the investment community.
As of the end of December 2013, there were approximately 18.5 million shares outstanding in TRTB. The goal is to limit the total to no more than 30mm for the foreseeable future, unless there is a strong need for capital to enhance the growth of the new entities in the near future.
Thank you very much for your interest in True2Beauty.
William Bollander, CEO