"Together herewith the Shareholders of Solar Enterprises Limited will have received Notice of the Annual General Meeting to be held on Tuesday, May 14th, as well as the Report of the Auditors and the Financial Statements for the period ended 31st March, 2002.
Shareholders will note that as at the financial year-end, the Company's total current assets amounted to $24,133.00, but that total current liabilities on the Balance Sheet are $46,183.00. For that reason, the Shareholders are being asked to adopt a Resolution to grant to the Board of Directors a mandate to issue the remaining unissued shares of the Company, which if all are taken-up, would provide the Company with sufficient funds to cover the annual expenses for at least four years. This however will not address the question of the deficit which presently stands at $258,268.00.
Your Directors, however, hope that Messrs. Rego Realtors will, during the next two years, at least, be successful in selling either the company's land in East Caicos or all the shares of the Company. The sole Real Estate Agent has been informed that the Directors would desire to see an overall price of U.S.$8.2 Million although the realtors have expressed an informal view that US$5 Million would be a more realistic price in the current market. Considering that the cost per Acre of the land owned by the Company is estimated to be $407.00 per Acre, either gross price would produce a more than reasonable return on investment even after satisfying the real estate agent's commission and the payments which have been agreed to be paid to the option holders mentioned in Note 6 to the Financial Statements.
Under Note 10, it is drawn to the Attention of shareholders that if the land is sold rather than the shares, there will be a Stamp Duty payable under the law of Turks & Caicos, and that the Stamp Duty has been reduced from the original 9:1/2% to an unconfirmed amount. There would however be no Stamp Duty payable on the sale of the shares of the Company. It should further be noted that there has been an asked price for the shares of the Company on the Bermuda Exchange of $8.00 per share (but no bid prices).
Your Directors therefore will ask that the Shareholders continue to have faith in the future value of the asset of the Company and to support the share offering set-out in the Notice of the Meeting."
Signed by: James A. Pearman, President