SOURCE: PSPP Holdings, Inc.

October 09, 2007 09:08 ET

PSPP Holdings, Inc. Warns Shareholders of Disinformation Campaign Conducted by Previous Management -- Company Also Clarifies Talking Points and Relationships

LOS ANGELES, CA--(Marketwire - October 9, 2007) - PSPP Holdings, Inc. (OTCBB: PSPJ); warned shareholders today of a campaign of disinformation which is apparently being conducted by the previous management and/or the previous investor relations contractors for the company.

It was discovered that hackers had closed off access of PSPP Holdings' CEO Kyle Gotshalk to his company email inbox. It was further learned that any shareholder inquiries directed to Mr. Gotshalk were being answered with a copy of a counterfeit press release which attacked current PSPP Holdings' management with false and erroneous statements.

The company believes that false information was distributed. PSPP Holdings stated that shareholders are to disregard any information distributed and wishes to assure all concerned parties that it is working diligently with company counsel, the Securities and Exchange Commission, and Federal Law Enforcement officials to put an end to the current campaign against the company and its shareholders.

PSPP also stated it wished to clarify its relationships with one Leonard Gotshalk, Piedmont Properties, and Kyle Gotshalk through the following statements.

1. Leonard Gotshalk is not now nor has he ever been an officer of PSPP Holdings, Inc. Mr. Gotshalk is an officer of Piedmont Properties which has invested in PSPP Holdings and in its subsidiary eSafe.

2. Piedmont Properties is owed substantial sums of money by eSafe which is disclosed in the financial filings of PSPP Holdings.

3. Kyle Gotshalk, the CEO of PSPP Holdings, Inc. reassumed the helm at PSPP in an effort to repair the recent damage to the company's stock price and to attempt to insure that all of the company's shareholders are protected as the company moves from the developmental stage to a revenue producing model. Previous management, led by Mr. Larry Wilcox, had presided over a plunge in the company's stock price from approximately 65 cents per share to fewer than 5 cents per share in a very short period of time. Current CEO Kyle Gotshalk feels this was totally unacceptable.

4. Kyle Gotshalk has never received any monies from the company, even though he was promised by the previous management he would receive the three years of back wages he was due when he resigned in August. Mr. Gotshalk reassumed his position as President of PSPP on October 4th.

PSPP Holdings' President Kyle Gotshalk stated, "Larry Wilcox burned through more than fourteen million dollars at UCHUB while producing little to no revenue. It seems he felt he could bring the same game here because over one million dollars was invested into PSPP's eSafe over the past one year and Mr. Wilcox has produced no financial records to prove where the money has been spent. In the company's 15c-211, Wilcox had promised that eSafe would be generating substantial revenues within ninety days. The result was a mere five thousand dollars in revenues. This was wholly inadequate and the new management team and Board of Directors felt it was essential that a change at the top had to be made."

Gotshalk continued, "False accusations have been made against me and my family. We built this company from a shell over a three year period. and we feel those accusations are being used as a diversionary tactic to hide the fact that Wilcox, Ostrower and UCHUB have failed to prove ownership of the nearly twenty three million restricted shares of PSPP which should still be in their possession. David Ostrower has been at the forefront of the campaign against me and if anyone would like to know the value of this man's word all that need be done is to check the federal court records in the man's current bankruptcy proceedings where it will be found that he claims he has no job."

Concerning the rumors circulating that Kyle Gotshalk has been subjected to physical threats from Wilcox and Ostrower, Gotshalk said, "It is true that physical harm threats have been made against me and my family. We have the letters of proof and will disclose all of this in its specific nature to the public when the time is right. At the moment, the issue is being addressed by the proper law enforcement officials. Please remember that these people will tell you anything to get what they want, when they want it. They made a very big mistake in assuming I would walk away while they destroyed this company, however. We are here to make sure this works out the way it was intended. Neither threats, nor campaigns of disinformation will serve to deter us from this task."

About PSPP Holdings, Inc.:

PSPP Holdings provides the transaction-based business of electronic payments and related digital banking in two continents today: North America and Africa, utilizing MasterCard International and Visa, as well as local banks which enable settlement of funds in local currency. With strategic relationships in place and with its own proprietary processing software code, PSPP Holdings is committed to delivering speed to market, continuous innovation, significant savings, convenience, and benefits to its customers, cardholders, employees, and investors.

PSPP Holdings, Inc. is headquartered in Los Angeles, California and is a financial services company that is establishing an international banking network to facilitate electronic remittance, Mobile Banking, e-benefits, and stored value and pre paid card solutions.

Safe Harbor Statement

This press release includes forward-looking statements about the Company's estimated revenue and earnings within the meaning of the Private Securities Litigation Reform Act of 1995. All statements other than statements of historical facts contained in this release, including statements regarding the Company's future financial position, business strategy and plans and objectives of management for future operations, are forward-looking statements. The words "believe," "may," "will," "estimate," "continue," "anticipate," "intend," "expect," and similar expressions, as they relate to the Company, are intended to identify forward-looking statements. We have based these forward-looking statements largely on current expectations and projections about future events and financial trends that we believe may affect the Company's financial condition, results of operations, business strategy and financial needs. Risks and uncertainties include the ability of the Company to attract customers to its website and offer attractive products; to maintain its website, electronic data processing systems, and systems hardware; to forecast accurately net revenue and plan for expenses; to protect our intellectual property rights; and potential litigation and government enforcement actions that may result from our prior securities offerings. Please refer to PSPP's reports and filings with the Securities and Exchange Commission for a further discussion of these risks and uncertainties. Readers are cautioned not to place undue reliance on forward-looking statements, which speak only as of the date they are made. PSPP undertakes no obligation to update publicly any forward-looking statements to reflect new information, events or circumstances after the date they were made or to reflect the occurrence of unanticipated events.

Contact Information

  • Contact:
    Kyle Gotshalk
    416-996-1789