May 2020 Shareholder Update
Dear Shareholders,
I am writing to you today on the 1-month anniversary of MPP Software Solution Inc.’s incorporation to update you on our business progress to date.
Development
MPP has secured a development partnership with Lethbridge-based The Coding Studio, and hired our Chief Products Officer, Vincent Sundar, to manage the long-term product development strategy and day-to-day interactions with The Coding Studio. TCS has already proven the value of our relationship through the acquisition of a pre-built HTML application template we are using as the basis of our bespoke solution, which has reduced the overall build cost and timeline by 33%. Development of the customizations officially began on June 8th, and as of today our estimated completion date is mid-October 2020
Funding
Round A funding has 3 weeks remaining, and at this juncture here is where we stand:
Founder shares: 5.1MM / 5.1MM purchased at $0.01, for $51,000.00 total.
Class A Preferred shares:925K/3MM purchased at $0.10 for $92,500.00 total.
Class B common shares: 1.5MM / 1.9MM granted in employee compensation
Class B common shares: 200k / 400k remaining purchased at $0.10 for $20,000.00 total
Total investment funding to date: $163,500.00
In addition to the investment funding, we have qualified for an additional $45,000.00 from the Federal FuturePreneur program and BDC. Lastly, we are working with our bank to secure a $100,000.00 operating line of credit as an emergency measure to give us added runway if there are future issues. As it stands today, this positions us to run 1.5 years of our projected operating costs on our committed funding from all sources, and an additional 9 months if we leverage the Line of Credit, and this is excluding any revenue from sales. A reminder that any Class A preferred shares not purchased by June 30th, 2020 will revert to Class B common shares effective July 1st. On June 30th, 2020 we will have all shareholders at that time ratify the Unanimous Shareholder Agreement and crystallize the share structure going into the future.
Operations
The business has hired our VP of marketing, Trina Wallace, who has established initial branding standards for the corporate entity, as well as completed the naming process for our flagship product suite and branding standards for the product suite. The Eligere suite will be our flagship product focusing on high-end luxury users and carry a premium price tag compared to our broader-market suite which will come out in the future. In July we will be officially launching our “waitlist”, an initial user group limited to 200 people who will get early access in exchange for beta testing support and a deposit against their first year of subscription costs.
Our online presence is evolving with a draft website undergoing final revisions and our LinkedIn profile for the company established. We are expanding the content on these daily and will be issuing a press release about the kick-off of development early next week. Last note on the operations front, we have put a tentative offer on a lease in downtown Lethbridge for our office space. We are negotiating on the terms of the lease but locating ourselves in downtown Lethbridge positions us close to our partners at TCS as well as saves us 66% off the leasing cost of equivalent space in Calgary or Edmonton.
Closing
Our first month has been hectic but productive, and we are pleased with our progress in establishing the company as well as moving forward our product goals. We are already ahead of our original schedule, which saw us market ready in Q2 of next year, as we are now expecting to get the first product commercially released right after Christmas 2020. We will update again in July with further development.
Regards,
Colin Moreland, CEO