Statement of Direction for AQUAGOLD International, Inc.

August 25, 2009

From the desk of:
Domingo M. Silvas III 
Chief Executive Officer
AQUAGOLD International, Inc 

Statement of Direction for AQUAGOLD International, Inc.


I have just returned from spending a productive and insightful week in Canada with AQUAGOLD operations, and it is an ideal time to update shareholders about the considerable progress being made by AQUAGOLD International Inc. It is clear to me that the corporate transformation initiated less than one year ago has been realized and I am excited to report to the shareholders of AQUAGOLD the results of our efforts to date. I believe the vision I set into motion is well on its way to becoming reality. I realize that we are no longer the same company we were one year ago when I first joined the team, and it was only a short time ago that we began to transition from “old” to “new”.  I would like to sincerely thank our shareholders, customers, partners and team members for supporting this transformation and helping AQUAGOLD prepare for an exciting and prosperous future.


For me, everything began in July of 2008, when I met with two of the founders of AQUAGOLD.  After fully understanding the history of the company, their vision for the future and clearly seeing its considerable potential, I joined AQUAGOLD as a consultant and began crafting a new vision.  With the help of the Board of Directors, we established key components to ensure a stable foundation upon which we could build a successful business.


We carefully built this foundation step by step.  First, I secured the legal representation of the well-established law firm of Brinen and Associates to focus on compliance and transactional issues. Through the expertise Joshua Brinen our publicly traded corporation is more legally sound.  Next, I restructured the existing management team and added new members who bring considerable years of experience and expertise to the company.  We were thrilled to bring in Joseph Rosamilia, a veteran of the banking and finance industry with strong experience in Asian markets.  Then, we secured Joe Matuella, a branding and marketing expert with significant experience in creating sustainable brands; a core competency critical to our success in this industry.


Once the legal and management teams were securely in place, we refocused our attention and efforts on the Chinese markets by working closely with founders Daniel Sauve and York Tang.  It was apparent to us that China’s extraordinary, double-digit growth was supporting strong domestic retail growth and that a significant demand for imported luxury items, specifically water, was well underway.  We embarked upon a comprehensive production strategy that would allow us to continue to develop this high-end market that is the core of our plan to maximize future growth and long-term value for AQUAGOLD and its shareholders.


In keeping with this core target market, we knew that AQUAGOLD’S offering would have to be a first-class product representative of the goods this new class of consumers demands.  We spent a great deal of time and effort on the research and development necessary to ensure we had a premium quality product that would be highly desirable.  We wanted our product to represent purity and a distinction that can only be found in natural resources.  Knowing the caliber of our product, precise measures were taken so that our vendors and production partners were properly committed to, and aligned with, our vision for AQUAGOLD.


With this strong foundation properly established, it was time to begin executing a strong and timely marketing initiative in China.  With York Tang taking the lead, we worked with a top production team to create “AQUAGOLD Superface,” a Chinese Reality show in the form of a modeling competition.  After several weeks of broadcasting, “AQUAGOLD Superface” was airing weekly to a viewership of over thirty million and we knew we had a hit on our hands.  The AQUAGOLD branding process was in full swing.   With this strong momentum in China, we received the support of twelve prestigious organizations that now provides us with an exceptionally strong foothold in this highly lucrative market.  Through these marketing efforts, we fully anticipate the continued growth of brand recognition in China that will underpin our prospects for success.


Our team in China has been hard at work mobilizing the necessary means to successfully carry out the distribution process for AQUAGOLD’S products.  We have identified short-, medium- and long-term growth strategies that are in the midst of implementation.  Given that our product is a premium luxury item, we have identified the sectors of operation that will best suit our distribution plans.  Our products target the upper echelons of the Chinese social structure, which represent an extremely large market, estimated at between two hundred to three hundred million people.  In order to carry out our plans, management in China has put together a highly qualified team of sales representatives with very strong industry experience.  These efforts have focused primarily on Shanghai, the initial venue for our sales.


As the containers continue to arrive with our flagship product, a sales team of managers and representatives is being trained to assist in sales and marketing operations.  We currently have ten sales representatives, with immediate capacity to expand to fifty, as well as two managers, with immediate capacity to expand to ten for the Shanghai territory alone.  Implementation of similar sales and marketing teams have been established for Beijing, as well as second tier cities that include Shenzen, Dalian, Hanzhou and Wuxi.  In Shanghai alone, our initial product will be received by fifty restaurants, one hundred hotels, three hundred to five hundred supermarkets and fifty KTV (karaoke) nightclubs, representative of the higher quality clientele that we are targeting in China.


We believe that the success of our initial marketing campaign was a critical factor that has enabled us to establish strong relationships with two of the largest retail chains in China, that collectively distribute through over eight thousand retail points of sale nationally.  Our focus on securing distribution relationships has been enormously productive, and AQUAGOLD now stands ready for further international expansion of its product. 


As the company’s new vision began to successfully materialize, I was invited to China to meet with the Board of Directors in Shanghai.  This gave me a chance to see and better observe, interact with, and understand the culture of our core market.  As a guest of York Tang, I was able to visit many wonderful historic sites and began to understand that purity and distinction are highly desirable and valued qualities in the Chinese culture.  It was in Shanghai that I gave my one-year report on the company’s foundational progress and shared a plan for what I believe will be exceptional revenue growth.  Within a few days of that meeting, the Board of Directors affirmed their continued support and appointed me the CEO of AQUAGOLD.


There is currently a great amount of excitement surrounding AQUAGOLD International.  We have recently started shipping our product to China and there is a lot of enthusiasm and anticipation from our clients and partners, not to mention the buzz being created by “AQUAGOLD Superface.”  Several factors have combined to create enormous potential for prolific expansion in the near-term, while also providing long-term value creation for shareholders of AQUAGOLD.  These factors include:


  • Rapidly increasing brand awareness in China
  • Overwhelming support from prominent Chinese companies, and
  • Recent acquisition of very significant sales contracts


I understand that there may still be some concerns surrounding the history of AQUAGOLD.  I would like to try to ease some of these concerns by sharing my belief that the significant effort that has been applied systematically and consistently within the “new” company will result in resolution of all inherent legacy issues.  Rest assured that AQUAGOLD is now solely focused on forward movement, supported by a highly ethical, committed and strong base of management and operational expertise.  I can say with confidence that the level of professionalism and integrity of each team member in the “new” company will become readily apparent as we experience the successes resulting from their work, dedication and singular commitment to providing a first-class product.


I want to invite you to follow us as we begin a social media campaign in order to regularly share news on our progress with you.  We encourage you to become a fan on Facebook and follow us on Twitter so that you may keep in touch with us.  You can additionally look forward to a new CEO blog as well as a China blog that will be initiated soon. 


I will be conducting a shareholders meeting this Fall and look forward to your attendance.  I hope that you are encouraged and excited about all the positive results AQUAGOLD is experiencing and the enormous potential our company has as it successfully penetrates the Chinese market.  I look forward to continuing to build confidence among our shareholders and rewarding their belief in us by demonstrating the success of our comprehensive business plan.


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