Welcome to the new MEZZI BRAND GROUP website. This will be the place to stay up-to-date on the investor relations side of things. With much going on behind the scenes we want a place for investors and shareholders to go that provides more transparency and the ability to quickly retrieve relevant information such as Sedar filings and news releases. Also, I’ll be posting on a regular basis on items that are important for shareholders to know but may not meet the criteria for an actual news release. If judged on share price, it appears that I must do a much better job of passing along information and keeping you posted on our progress and execution of strategy.

The start of 2016 has seen our global stock markets solidly in the red on a daily basis. China which saw stock market hysteria and major weakness last August is once again the top story. Late last year the US Fed raised interest rates 0.25% and firmly set in a top to the major US stock markets. The Fed’s hawkish stance and plans for further monetary tightening over the next 12 months has caused strengthening of the US dollar and the continued collapse of commodity prices. With Canada’s exchanges largely weighted in oil and commodities, our main stock exchange has been in the red 10 out of 11 trading sessions and left our dollar lower in value to the greenback. It now takes about $1.45 Canadian to buy 1 US dollar.

The TSX Venture Exchange, where MEZZI’s shares trade, is at an all-time low…my data only goes back to 1991 when it was the VSE. Over 2015, our shares traded from an early 2015 low of 11 cents to a high of 31.5 cents in June. The last half of the year saw the share price pull back despite the Company’s improving results. The last quarterly results covering August, September and October saw a 300% quarter-over-quarter increase in revenues and November’s sales results were larger than that quarter combined meaning we’re poised to have a 3rd consecutive quarter of growth. Yet, the start of the year’s global investor panic has seen our shares tumble to a new all-time low.

We anticipated this potential for market weakness by focusing on burn rate reduction through reduction in our cost of goods, shipping fees and cost of labour while not sacrificing our growth or progress towards profitability. We are largely a Canadian-based Company that operates a large portion of the business in Canadian dollars but produce most of our revenues in US Dollars. This has been quite helpful in offsetting staff costs and has allowed us to be very efficient with our capital.

In mid-2015, our business strategy expanded to incubate and acquire other brands that our MEZZI e-comm and sales platform could enhance. Our first brand that we incubated was MLine Cases that launched in July after prototyping its line of cases. Since July, the brand has built a dealer network of more than 700 locations in 24 US States. This is growth of about 100 retail locations per month. Our first brand acquisition, Capital Eyewear, was acquired in October and is set for a relaunch in February by fully utilizing our sales platform. We’re excited to show you what we’ve been so busy working on.

We plan on incubating and/or acquiring other opportunities but some of these will be dependant on our share price as this needs to be viewed as currency and target companies need to see long-term value in our shares. Our growth plans can be accelerated by seeing a reprieve to the global stock market selloff. Two areas that we have been busy on for months and may offer continued near-term growth of our brand portfolio is in the watch and cosmetic sectors. We believe that there are unique opportunities in these segments that would add value and cross selling opportunities to our existing brands.

Some of you have asked about when MEZZI will restock certain styles of its handbags. This will be happening soon and we plan on providing further information on this in upcoming news releases. After completing prototyping and confirming production quality with other factories, we have now moved all of our production and strengthened our supply chain. This has cut the production time in half.

Thank you for the read. We’ll do a better job of providing more behind the scenes access and updates on our progress. The newswires are not always as easy to decipher what is actually happening within the Company.

We believe we’re building and growing a Company of value that is uniquely positioned for the TSX Venture Exchange especially at this time when growth, burn rates, blue sky potential and sector favourability are so important. Who knows, just maybe the ball is about to bounce into our corner.

Please email me directly at keir@mezzi.com with any and all questions. I will endeavour to answer all those that I am able to.

Best,

Keir Reynolds
CEO