IRVING, Texas, June 12,
2014 /PRNewswire/ -- RBC Life Sciences, Inc. (OTCQB: RBCL), a
provider of proprietary nutritional supplements, and wound care and
pain management products, today released the following letter which
was sent to the Company's stockholders addressing recent
performance.
June 6, 2014
Dear RBC Shareholders,
We, the management of RBC Life Sciences, Inc. (RBC), appreciate
your interest in the Company. Recently, we published our Quarterly
Report on Form 10-Q for the first quarter of 2014. Accordingly, we
felt it would be an appropriate time to comment on our current
operations and plans for the months ahead.
Twenty-three years ago we launched a nutritional products
business as an entry into the growing healthcare industry
exemplified by our slogan, "Better Nutrition for Better
Health." We now believe even more strongly that we are in the
right field with an excellent line of products that will help meet
the demands of an aging population and a growing number of
individuals seeking a healthy lifestyle.
We also continue to believe that the direct sales model we
adopted is the most effective means of distributing these
products. The essence of direct selling is person-to-person
interaction and the technology revolution that now connects
individuals all over the world presents an unparalleled opportunity
for this distribution model to flourish.
For a number of years, a significant portion of our sales have
been generated by two large customers, and the results we have
reported demonstrate the need to reduce our dependence on these
customers by increasing our business with our other customers. To
achieve that goal we have taken a number of actions.
Three years ago, in order to build our core nutritional
supplement business, we began looking for markets outside
North America. After observing
favorable conditions in Southeast
Asia, we made the decision to expand into that area. It is
one of the fastest growing regions in the world in the demand for
nutritional products and the acceptance of direct selling. The
latest industry data indicates that Southeast Asia accounts for 44% of global
direct selling industry sales. In response to this opportunity, RBC
now has opened office/distribution centers in Taiwan, Hong
Kong and Malaysia, and
plans to expand into other countries in the region. We
believe that long term market potential in this region justifies
these investments.
Also in 2011, we licensed marketing rights for Stem-Kine, a
nutritional supplement shown in published human studies to increase
the production of the body's own stem cells. Stem-Kine is now our
largest selling product and it provides us a unique selling
proposition in the market, which has proven particularly
advantageous in our Asian market expansion.
In addition to expanding our markets and product line, we also
recognized that the technology platform we were using was a barrier
to growth. Accordingly, in late 2013, we engaged a new partner to
develop a platform that would enable us to achieve and support
sales growth. We expect to begin deployment of this new platform
later this year.
Additionally, our business extends well beyond dietary
supplements. Through our medical products subsidiary, MPM Medical
(MPM), we market a line of wound care and oncology products to
clinics, nursing homes, hospitals and medical/surgical dealers.
This line includes unique products designed to meet the growing
demand for wound care products. These products are sold in the U.S.
through our national sales team. During the past two years,
we have upgraded the sales team and arranged training for each
member to become a certified wound care marketing specialist.
As an RBC stockholder, I have the same goals as you and other
shareholders: to increase shareholder value. We have not been
satisfied in our results over the past few years. However, we
are working to change them to a more positive direction. We
believe the value of RBC shares should improve as we establish a
track record of consistent sales and earnings growth. It is our
goal to see the value of RBC shares increase well beyond my tenure,
so that it may benefit you or your heirs for generations to
come. For these important reasons, I believe our goals are
well aligned with all shareholders.
With years of producing high quality wellness products, and
resolving the complexities of international business, we believe
that RBC is poised for real growth and a very bright future.
Thank you for your continuing support.
/s/ Clinton H. Howard
CEO
RBC Life Sciences
About RBC Life Sciences
Through wholly owned
subsidiaries, RBC Life Sciences develops, manufactures and
markets high-quality nutritional supplements under the RBC Life
brand to a growing population of consumers seeking healthy
lifestyle and an opportunity to increase their long-term family
income. Through its wholly owned subsidiary, MPM Medical, the
Company also develops and markets to health care professionals in
the United States proprietary
prescription and nonprescription products for advanced wound care
and pain management. All products are tested for quality assurance
in-house, and by outside independent laboratories, to comply with
regulations in the U.S. and in more than 30 countries in which the
products are distributed. For more information, visit the company's
website at www.rbclifesciences.com.
The statements above, other than statements of historical
fact, that express a belief, expectation or intention may be
forward-looking statements within the meaning of the federal
securities laws. Actual events will be dependent upon a
number of factors and risks including, but not limited to, changes
in plans by the Company's management, delays or problems in
production, changes in the regulatory process, changes in market
trends, and a number of other factors and risks described from time
to time in the Company's filings with the Securities and Exchange
Commission. Although we believe that the expectations
reflected in these forward-looking statements are reasonable, we
can give no assurance that such expectations will prove to have
been correct. Further, we specifically disclaim any duty to
update any of the information set forth in this press release,
including any forward-looking statements. Forward-looking
statements are made based on management's current expectations and
beliefs concerning future events and, therefore, involve a number
of assumptions, risks and uncertainties. Management cautions
that forward-looking statements are not guarantees, and our actual
results could differ materially from those expressed or implied in
the forward-looking statements.
For Further Information:
Steven E. Brown, President
Tel:
972-893-4000
Steve.Brown@rbclifesciences.com
SOURCE RBC Life Sciences, Inc.