Small Business Development Group (OTC: SBDG) Shareholder Letter From the CEO

CARY, NC – (NewMediaWire) – January 3, 2022 – Small Business Development Group, Inc. (OTC:SBDG) (www.SBDGStock.com) today issued this letter to shareholders summarizing activity in 2021.

 

Dear Shareholders,

2021 has been a year in which I and our Team at Small Business Development Group (OTC: SBDG) have been able to develop, refine, and deploy our plan and strategies to move our Company forward and upward. Central to our plan was building around a publicly traded holding company, and in getting back to Current Information Pink status on OTC , we set the foundation for our growth strategies.  We are now set to pursue extraordinary growth in 2022 and beyond. Our potential success will require support from both our current and future shareholders.

The New Year will see the development of a number of operating channels for SBDG.

Acquisitions

Stony Hill Advisors LLC is a 10-year-old merger and acquisition advisory firm that specializes in providing intermediary services for lower middle market companies and small business entrepreneurs. Stony Hill has assisted clients across a wide variety of industries throughout New Jersey, Pennsylvania, Delaware, Ohio, Connecticut and the New York metro region. Stony Hill offers various professional services including mergers, acquisitions, divestitures, exit value planning, business valuations, and transaction consulting. Stony Hill is a trusted advisor partnering with their clients and the client’s other trusted advisors to provide confidential, qualitative, and quantitative guidance and deliver results.  Stony Hill believes owners and acquirers of small and mid-sized businesses require the expertise and dedication of the team of advisors. Stony Hill partners with clients to provide confidential, qualitative, and quantitative guidance and deliver results. Stony Hill serves as SBDG’s in-house M&A Advisory firm, and SBDG plans to expand Stony Hill’s presence throughout the United States.

Appraisal 3000, Inc. is an Appraisal Management Company (AMC) based in Southern California and manages commercial and residential real estate appraisals throughout the state of California.  Formed in 2013, Appraisal 3000 manages more than 50 state-licensed appraisers to valuate properties and deliver real estate appraisal reports to mortgage lenders. Management has long standing relationships in the real estate industry and has been growing steadily since inception.  SBDG has plans to accelerate Appraisal 3000’s existing organic development with an infusion of resources including capital, marketing, technology, and human resources. Growth plans include increasing Appraisal 3000 market share in California, expanding into states where the Company is well-networked, and growth via acquisition. 

The above acquisitions represent an 80% purchase of equity by the Company with a combined valuation of $760,000. SBDG used Series A Convertible Preferred shares (face $760,000) with conversion to the Company’s common stock at $2.50 per share or 80% of market whichever is greater of restricted shares. These two acquisitions will be treated as investments. 

Investment

The Company undertook a feasibility study on the manufacturing of Nitrile Medical Exam Gloves in the United States. The study was co-sponsored with C2C Private Investment Company LLC, an affiliate of SBDG. Based on the feasibility findings, SBDG formed Strategic Manufacturers, Inc. (SMI) a Texas Corporation to move forward with the project, which calls for SMI to build two large manufacturing plants in the Katy, Cypress area of Texas. When fully operational, these plants will produce 4.5 billion nitrile examination gloves annually, as well as 120,000 metric tons of the synthetic rubber, known as NBR (nitrile butadiene rubber), from which the gloves are made. The SMI project value is $106 million in equity and $197 million in debt. SMI has engaged an Investment Banker to place the Offering.

Other Initiatives

Management has several other initiatives underway that are designed to support SBDG’s strategies and business plan.

SBDG Southeast Asia, (SBDG-SA) will be the exclusive agent for client origination in Southeast Asia and will service Malaysia, Indonesia, Singapore, Thailand, and Vietnam providing financial and business consulting services to companies wanting to access the U.S. markets for their products and services, and/or seeking a listing on a U.S. public exchange.

SBDG is planning to launch a $10 million residential acquisition fund focusing on the growing Single Family Residential (SFR) rental market.

The Company is planning to acquire assets and to build out a fully integrated digital media company to support SBDG, its portfolio companies and affiliates, and commercial clients.

Summary

In closing, SBDG’s management is expecting 2022 to be a building year that will form the foundation for the remainder of the decade. Management has designed SBDG’s share structure for long term appreciation growth with only 30 million common shares authorized, of which 10,360,444 shares are issued and 950,651shares in the float. The Company will rely on Preferred shares to acquire companies and raise working capital, always looking to insulate the common shareholders from unfair dilution.

SBDG’s strategy for raising growth capital whenever possible will be done at the subsidiary/portfolio level. The current exception is SMI in which SBDG has authorized a Regulation D 506 (c) for up to $150 million preferred shares; these shares are subject to a minimum raise of $120 million which if successful would have a significant positive impact on the overall value of SBDG.

The SBDG Management Team is committed to developing fundamentals for our shareholders and in 2022 we will improve on Transparency, Communications, Sound Business Practices, Financial Forecasting and Management Accountability.

I encourage all of our shareholders to visit our new website, www.SBDGStock.com, and to visit OTC Markets to follow our progress as we move forward with implementing SBDG’s business plan.

Thank you for your time and support.

Respectfully,

 

/s/ Roy Y Salisbury

Roy Y Salisbury

Chief Executive Officer

 

About SBDG:

Small Business Development Group, Inc. (OTC: SBDG) is a holding company publicly traded on OTC Markets. SBDG has an active mandate to identify and acquire operating companies with a preference for those in the small to medium sized enterprise arena (SMBs and SMEs) based in North America, specifically those demonstrating modest but predictable growth and profitability over time. Ideal candidates for acquisition have an enterprise value between $2 million and $50 million with positive cash flows between $500 thousand and $5 million. SBDG’s intent for all acquisitions is to affirm or establish sound business fundamentals and to drive revenue and profitability growth. The goal of SBDG is to develop and align portfolio companies into high performance industry verticals and deliver additional value for its stakeholders. 

For more information, go to www.SBDGStock.com

Note to Investors

This press release contains certain forward-looking statements based on our current expectations, forecasts and assumptions that involve risks and uncertainties. This release does not constitute an offer to sell or a solicitation of offers to buy any securities of any entity. Forward-looking statements in this release are based on information available to us as of the date hereof. Our actual results may differ materially from those stated or implied in such forward-looking statements, due to risks and uncertainties associated with our business.

 

Contact:  Paul Knopick

pknopick@eandecommunications.com

940.262.3584