Today, I am publishing this letter to break the silence and usher in a new era for American Commerce Solutions, Inc. shareholders. I am excited to be able to announce several consequential events for the immediate and near future that will have long term benefits to all shareholders of record date.
For many reasons American Commerce Solutions, Inc. has not been able to implement its business plan effectively. It is not due to lack of effort! We have entered into negotiations time and again for potential mergers and acquisitions. We have had some successes and some failures, but all along the way we have been diligent. We are building every day on our plans. We are confident that perseverance, hard work, dedication and opportunity eventually come together to produce success. Success is a measurement that each must define by his own circumstance, but represents achievement, accomplishment, victory or triumph.
Ultimate success is almost always preceded by disappointments and delays, but never with quitting as an option. AACS has great expectation of ultimate success. We have literally weathered the storms that caused almost $1.5M in damage to our home office and IMW facilities, as well as the economic storm that is caused by under capitalization and poor cash flow. Quitting has never been an option.
Personal sacrifice is also a key element of ultimate success. Management and labor alike have made the sacrifices required, over and over again. We will continue to do so.
Patience has been the common denominator for employees, management and shareholders alike. Great expectation has been the bond that holds us together while we continue our journey to success and the resulting reward.
Every day, we fight the battles necessary to give us the anticipated victory in the ongoing war. Today, as I write, I see a light on the horizon.
The fourth quarter of 2008 is expected to be the beginning of a new era at American Commerce Solutions, Inc. For several years we have been on a parallel track with American Fiber Green Products, Inc. (www.americanfibergreen.com), as that company has sought to be publicly traded. That goal was achieved with the help and support of American Commerce Solutions, Inc. with approval on December 20, 2007 and officially trading on May 2, 2008 under the symbol of AFBG.OB.
I expect that the benefits of the assistance given will be felt soon and for a long time to come. Time will tell, but we believe that once funded, AFBG will grow quickly and its stock will appreciate well. Both of these events will be cause for celebration for AACS shareholders.
Why? We expect substantial growth and AACS subsidiary, International Machine and Welding, Inc., is anticipated to be the vendor source for fabrication and erection of the operating plants for the recycling process.
Whether IMW directly or indirectly produces the plant, substantial revenue and profits will be derived from the association. Some parts are ‘off the shelf’ while others will be design built to the specifications of the patent and the sub licensees specific plans.
Additionally, AFBG will award to AACS 276,000 shares of AFBG common stock, representing 15% of the issued and outstanding shares of common stock held by the approximately 950 shareholders of Amour Fiber Core, Inc. at the time of the merger between Amour and American Leisure Products. Although sporadic trading has occurred in AFBG, no substantial market awareness has been created to cause the share price to find its proper trading level. The price has fluctuated from $.10 to $1.20 in its short trading history.
It is anticipated that as funding, sublicense agreements and tipping contracts are established over the next few months, market awareness will cause share price appreciation to the $2.00 plus level. Of course, there are no guarantees in the stock market in this economic climate!
For AACS shareholders of record at close of business on November 14, 2008, a distribution of one (1) share of AFBG common stock for every 2500 shares of AACS common stock will be made. This presumes no legal prohibitions to this action. This action should solidify the relationship between the shareholders of both companies.
However, as exciting as the relationship and opportunities with American Fiber Green Products, Inc. may be, AACS management is equally excited about the other opportunities under negotiation at this time. The current economic climate is bittersweet. For every story of decline and suffering, there are corresponding stories of opportunity for those companies and individuals that have been able to survive, endure and in some cases thrive through the hard times.
Opportunity comes often with recognition that uniting businesses with common goals and interests can provide a hedge against the onslaught. Banding together gives strength to weather hard, economic climate change.
The AACS business model which has remained largely undeveloped is still viable and we expect to make several critical announcements over the next few weeks that will encourage our shareholders and present a brighter picture for both near and distant future. Management anticipates announcement of two Letters of Intent for acquisitions over the next few weeks. Other acquisitions are anticipated as contracts are awarded in partnership with AFBG.
So, what does the future hold for AACS shareholders? Well, to some degree, that depends on you. Immediately, management will begin a substantial effort to increase awareness of AACS and its future plans.
We will use analysts, interviews and media reports to encourage investors to examine and become part of AACS. New and old shareholders, as well as potential new investors, will be exposed to the current and future plans of the company that we expect to revitalize the investor base. Plans that will build on the solid asset base that has remained in place since the reverse merger of June 2000 will be unveiled.
Common industry growth will expand the opportunities of the machine and welding sector by adding pecific recurring revenue production products. We will be considering and promoting joint venture relationships which will stabilize and grow the revenue stream. It is anticipated that some acquisitions may begin with joint ventures and expand from there.
During the time of creating awareness, it is our hope that those of you who have held firm in your expectations for AACS will now recognize that these efforts will be geared to return lost share value to AACS common stock.
During these efforts, you will have to make a decision whether to hold, sell or increase your position in AACS. It is anticipated that a few will decide to sell their AACS positions while many will increase or hold. Which makes the most sense?
Well, if you recognize that the plans of the company, if realized, could move the share price one hundred fold from its current under valuation, and you purchased your position as many did between two and one half cents and four cents, BUYING at current levels reduces your average cost per share. Also, your NEW buying will be a catalyst to increased share price allowing you to eventually sell at a higher share price with a lower cost basis.
If you are a seller, prudence says that being patient during an awareness campaign can allow momentum to become the current that carries share price to greater value and creating a higher exit point. This is beneficial to everyone involved because it establishes a higher cost basis for new shareholders, who will then have a higher exit strategy and the cycle will repeat at that point.
For those who have waited patiently or impatiently alike, this is the time that we have all hoped to experience. AACS is ready to move forward and become more than just another undervalued stock. Every shareholder can became part of the momentum by buying more shares in the market from those who simply can not or will not wait to sell. This consolidation of the shareholder base will help to create momentum that can increase the share value that we all hope to establish with AACS.
Thank you for your past, present and future support of American Commerce Solutions, Inc.
Dan Hefner, President
Safe Harbor Statement under the Private Securities Litigation Reform Act of 1995: The statements contained in this release that are not historical, are forward-looking statements that are subject to risks and uncertainties that could cause results to differ materially from those expressed in the forward- looking statements, including, but not limited to, certain delays and risks detailed from time to time in the company’s filings with the Securities and Exchange Commission.