SOURCE: Nutranomics Inc.

Nutranomics Inc.

October 14, 2015 09:00 ET

Nutranomics, Inc. Issues Shareholder Letter

Newly-Appointed, CEO and President, Dr. Edward "Joe" Eyring Details Immediate Actions and Improvements to Operations

DRAPER, UT--(Marketwired - Oct 14, 2015) - Nutranomics, Inc. (OTC PINK: NNRX) ("Nutranomics" or "The Company"), a diversified nutraceutical formulator, supplement manufacturer and marketer of Nutranomics® health supplements, today issued a Shareholder Letter (the "Letter"). The Letter details challenges the Company endured during the last year, reports operational improvements to date, establishes strategies to regain sales momentum and provides options to finance the Company's growth.

Re: NNRX Shareholder Letter
Date: October 14, 2015
From: Dr. Edward "Joe" Eyring

Valued Shareholders,

I would like to acknowledge and thank those who wrote or spoke the words of support received after my appointment to CEO and President of Nutranomics, Inc. My intent is to continue to gain your trust over successive quarters as we rebuild our core business segments and reinvigorate others. I believe the plans and goals we have established as a team will result in revenue and earnings growth, an increase in the value of our stock and the ability to regain shareholders' and the market's confidence. All of these are typical CEO goals, but the skill for us to accomplish them is ultimately found in our operations as a company. For this reason, this letter focuses on this first and foremost.

As stated in the announcement last week, my work with Nutranomics included a three-month process during which time the Company provided me access to management, staff, customers, financials and suppliers. Dr. Tracy Gibbs and then Michael Doron each had solid business plans for the Company during their tenures, but I believe both gentlemen would agree that the Company's inability to achieve them detracted attention from that which Nutranomics should always do best. This is the researching, formulation, manufacturing, and marketing of Nutranomics®and GenEpic®-branded products plus securing NNRX formulation and OEM contracts. The forces that were preventing us from this core objective were many, but can be categorized by; ineffective sales and marketing plans, misaligned staffing, lack of manufacturing cost controls, pricing models which prevented us from being competitive and finally, poor cash flows as a direct result of the conditions above. After a decade of fast-growth, NNRX plateaued and was in decline. However, at its core was a committed team of employees devoted to the Company, its brand, and its mission to provide one of the best nutraceutical product lines to a growing list of customers worldwide. With this belief, I assumed an active management role in the Company.

The day I assumed office, I dismissed underperforming staff, began scripting an employee handbook, defined job requirements and reviewed the balance of W-2 versus 1099 staff. In the weeks after, we audited our supply chain, manufacturing, inventory, pricing and reviewed credit lines for customers and our own with our creditors and banks. We cut, trimmed, streamlined and found savings never before realized. Our work resulted in significant reductions of operating costs, and in one such case, we found an available cost reduction of 30% on our leading products. We expect to realize these financial benefits and others in the coming quarters.

This was good news, but as mentioned above, if we could not leverage sales growth in this new paradigm, all the process efficiencies and cost saving measures would not benefit our shareholders. We then looked at every aspect of our product lines and their sales. We endeavored to complete a new order processing and CRM system to market, sell, deliver and service our customers. We studied customer purchasing patterns and trends in the market and engaged the Hamacher Group to update our brand and positioning for our current and future products we will launch. We negotiated an exclusive worldwide license for GenEpic® and refocused Dr. Gibbs onto OEM and formulation sales. At this moment, Dr. Gibbs is in Asia actively securing orders for our OEM and Formulation Division.

Our last 10-Q showed the decline in year-over-year sales we must reverse first and before we enter our next growth stage. This need is critical for our staff, our shareholders and our customers. For those of you who reviewed the terms of my employment contract disclosed in our recent Current Report on Form 8-K filed with the SEC, I am also staking my compensation directly on measured increases in sales. I believe the plans above will help us meet them.

Our stock has suffered over the last year. News and updates were scattered due to ongoing declines in sales to new customers and our lack of new products developed for the billion-dollar nutraceutical market in which we compete. Our stock price continually retreated due to the financing structures once available to us to pay for mandatory public market costs and listing requirements. Maintaining our listing, reporting and compliance remained important to us and critical to our shareholders. It is for this reason, I am addressing you today. We qualified and quantified each of the financings which may have dilutive effects in the future. I say "may" because it is our intent to pay them off if possible, all of them, with capital I plan to personally inject into NNRX in the coming weeks. I cannot disclose more of these details but certainly will in an 8-K and press release as appropriate.

Since we have received a number of comments and questions from shareholders on the potential action to reverse split our shares, let me provide you our insights. Our consideration of such was not a shareholder request recover additional, dilutive share issuances only to issue more shares. Rather, this consideration was an effort to position our stock to meet listing requirement on OTC Markets' QB and other National Exchanges like Nasdaq and NYSE. We believe we will obtain greater access to investors and potentially institutional investors with a cap structure and share price greater than current pricing.

This, however is down the road at best. For now, the below is our basic plan;

1. Rebuild Nutranomics' sales and communicate our efforts
2. Diminish or eliminate dilutive financing structures currently in place
3. Finance our business with new capital
4. Report our successes each step of the way

I hope this initial communication has answered many of the questions asked of us over the last two weeks. While I always want to be shareholder-responsive, I have also enlisted the help of other seasoned professionals to do the same. I will speak to all of our shareholders in consistent intervals on conference calls, press and at investor events. When not doing so, I will be out getting orders and building our business with our new sales team. For this reason, please engage with our shareholder communications contacts and others below also charged to service your questions and requests.

We value your ownership of NNRX shares and appreciate your support of the actions and plans detailed in this letter to you. We will be back in touch, and more frequently, from this point onward.

Dr. Edward "Joe" Eyring, M.D.

About Nutranomics Inc.

Nutranomics, Inc. (OTC PINK: NNRX) has been at the forefront of research and development of nutritional food products since its inception in 1995. In the first years of its operations, Nutranomics provided research and development of supplement formulations and nutraceuticals for domestic and international brands. After developing 100's of successful formulations and patents, Nutranomics developed its own brand of nutraceuticals in 1997, Nutranomics®, and began to market and sell its products directly to consumers and into retail outlets. Nutranomics maintains customers in the US, Canada, Taiwan, Japan, Singapore, Malaysia, Korea and Poland.

More than just a health supplement manufacturer, Nutranomics supports the worldwide community of people aiming for a healthy lifestyle by making education a core business philosophy.

Forward-Looking Statements:

Safe Harbor: This press release contains forward-looking information within the meaning of section 27A of the Securities Act of 1933 and section 21E of the Securities Exchange Act of 1934 and is subject to the Safe Harbor created by those sections. This material contains statements about expected future events and/or financial results that are forward-looking in nature and subject to risks and uncertainties. Such forward-looking statements by definition involve risks, uncertainties and other factors, which may cause the actual results, performance or achievements of Nutranomics Inc., to be materially different from the statements made herein.

Contact Information