Simple Feed

January 29, 2016

Restocking a Favourite

Good evening shareholders. Another Update for you all. The New Year has gotten off to a fast start as January quickly comes to a close and with it so does our 3rd quarter. Our main mission continues to be generating quarter-over-quarter growth along with increased margins. It has been our main focus outside of customer acquisition. I hope to address this in a formal news release shortly. I really wouldn’t let share price dictate business progress. The panic has been palpable.

As many of you saw the other week, we are restocking our most popular style: the Elletra clutch. It now includes a cross-body strap and wristlet providing even more versatility and options to wear it. We’ve started pre-orders and anticipate this to be sold out shortly. If you want to ensure you get your Elletra, please pre-order here. First bags arrive in February.

We’ve been busy working for months on a top secret project. We’ll be making a formal announcement shortly on this. It has been a great team effort and one that I’m very proud of.

February is going to be a whirlwind month for us. We have several launches including: the all-new Capital Eyewear website, a brand new eyewear style that you’l be seeing all over Instagram and the announcement of our several month in the making top secret project. We be attending and exhibiting some all-new styles at the Capsule Show in NYC. This is one of the top accessory trade shows to attend and will be the first time that the MEZZI brand is exhibiting. Thanks to its strong edit and distinct point of view Capsule is a favorite of many of the world’s most respected retailers in search of what’s new and next.

In an effort to bring more transparency and behind-the-scenes access for interested shareholders, investors and customers, we’ve been more active on social media highlighting our staff and the initiatives that we’re working on. One of the best ways to keep up with us is to follow us on SnapChat at MEZZI_Official. This is becoming a very popular way to broadcast quick snippets of realtime content so you can see all the diverse thing we’re doing to grow the MEZZI Brand Group.

With the issues related to firearm incidents in the US and threats to 2nd amendment rights, our brand, MLine is very well positioned as a possible part of the solution. Our MLine cases offer dual locking, key and combination locks along with shatterproof durability which provides a secure storage and transportation solution for firearms of all kinds. This internally incubated brand that was launched last summer has been performing ahead of initial expectations. We’ll be unveiling some new products in the coming months based upon demand and requests from our more than 700 authorized dealers.

With the soaring USD Dollar and the weaker CAD dollar, this has benefited our business as majority of our revenues are collected in USD but majority of our staff and expenses are in CAD. We continue to focus on expense reduction and revenue growth. We have laid out a strong business strategy for 2016 and are executing against it. We’ll share more of this in subsequent updates and official announcements.

There are more than 92 million millennials based in the US who influence the buying decisions of another 138 million US consumers and don’t relate to many of the mature accessory brands. You know the names, I don’t need to tell you who they are. This is what MEZZI Brand Group is all about. We’re about inspiring a generation of consumers who desire more, demand better and want a greater community connection to the brands they support.

These updates are to provide those interested in seeing our company continuing to grow, with some insight into what we’re working on and to discuss things that may not meet the criteria for official news releases. Thank you for your time.

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

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