ToughBuilt CEO Michael Panosian Provides Letter to Shareholders
LAKE FOREST, Calif., Jan. 04, 2019 (GLOBE NEWSWIRE) -- ToughBuilt Industries, Inc. (“ToughBuilt”) (NASDAQ: TLBTU; TBLT; TBLTW), a leading designer, manufacturer and distributor of innovative tools and accessories to the building industry, today provided the following letter to shareholders from its Chief Executive Officer, Michael Panosian:
"It is my sincere pleasure to address you through this letter and inform you of the progress, opportunities, and potential of ToughBuilt. I hope to use this letter as a means to highlight the foundation we have built, but more importantly, the work we will do to make our company successful.
As we start the new year, I wanted to share an overview as to what has transpired at ToughBuilt, focusing on what has taken place during last year and why we are so excited about the future.
In November 2018, we completed our Initial Public Offering and started trading on the NASDAQ Capital Market under the ticker symbol “TBLT.” We raised $13.35 million which will go towards sales and marketing, developing new products, increasing production capacity, and for general corporate purposes.
ToughBuilt was launched in 2013 and we consider ourselves a leading designer, manufacturer and distributor of innovative tools and accessories to the building industry today. We market and distribute various home improvement and construction product lines for both the professional and do-it-yourself markets under the TOUGHBUILT® brand name, within the global multibillion dollar per year tool market industry. Our business is based on development of innovative and state of the art products, primarily in tools and hardware category, with particular focus on the building and construction industry with the ultimate goal of making life easier and more productive for the contractors and workers alike.
We design and manage our product life cycles through a controlled and structured process. We involve customers and industry experts from our target markets in the definition and refinement of our product development and all of our products are designed by our in-house design team. Our product development emphasis is placed on meeting industry standards and product specifications, ease of integration, ease of use, cost reduction, design-for manufacturability, quality and reliability.
TOUGHBUILT® products are now available worldwide in many major retailers such as Home Depot, Menards, Bunning’s, Princess Auto, and others. And yet, we have barely scratched the surface of the potential market. In addition, we have plans for expansion in a number of promising international market such as Western and Central Europe, Russia & Eastern Europe, South America and the Middle East.
Since launching product sales in 2013, we have experienced significant annual sales growth from approximately $1,000,000 in 2013 to over $14,000,000 in 2017. From 2016 to 2017 alone, we experienced 54% year-over-year growth. Our growth continued in 2018 despite capital constraints and a heavy focus on the IPO, which is now complete. For this reason, we anticipate strong growth in 2019 as we expand our marketing efforts, increase our retail channels and expand our footprint within existing retail locations. In 2019, we plan to add at least three major retailers, along with several distributors and private retailers in over 50 countries.
We are excited for 2019, as we believe this will be a transformative year for us, as we are rapidly advancing our product pipeline, adding more SKUs in major home improvement stores as well as signing with key distributors. With our improved capital position, we expect to successfully execute on all fronts and we look forward to building shareholder value.”
About ToughBuilt Industries, Inc.
ToughBuilt is a leading designer, manufacturer and distributor of innovative tools and accessories to the building industry. We market and distribute various home improvement and construction product lines for both the do-it-yourself and professional markets under the TOUGHBUILT® brand name, within the global multibillion dollar per year tool market industry. All of our products are designed by our in-house design team. Since launching product sales in 2013, we have experienced significant annual sales growth. Our current product line includes three major categories, with several additional categories in various stages of development, consisting of Soft Goods & Kneepads and Sawhorses & Work Products. Our mission is to provide products to the building and home improvement communities that are innovative, of superior quality derived in part from enlightened creativity for our end users while enhancing performance, improving well-being and building high brand loyalty. Additional information about the Company is available at: https://www.toughbuilt.com/.
This press release contains “forward-looking statements.” Such statements may be preceded by the words “intends,” “may,” “will,” “plans,” “expects,” “anticipates,” “projects,” “predicts,” “estimates,” “aims,” “believes,” “hopes,” “potential” or similar words. Forward-looking statements are not guarantees of future performance, are based on certain assumptions and are subject to various known and unknown risks and uncertainties, many of which are beyond the Company’s control, and cannot be predicted or quantified and consequently, actual results may differ materially from those expressed or implied by such forward-looking statements. Such risks and uncertainties include, without limitation, risks and uncertainties associated with (i) market acceptance of our existing and new products, (ii) negative clinical trial results or lengthy product delays in key markets, (iii) an inability to secure regulatory approvals for the sale of our products, (iv) intense competition in the medical device industry from much larger, multinational companies, (v) product liability claims, (vi) product malfunctions, (vii) our limited manufacturing capabilities and reliance on subcontractors for assistance, (viii) insufficient or inadequate reimbursement by governmental and other third party payers for our products, (ix) our efforts to successfully obtain and maintain intellectual property protection covering our products, which may not be successful, (x) legislative or regulatory reform of the healthcare system in both the U.S. and foreign jurisdictions, (xi) our reliance on single suppliers for certain product components, (xii) the fact that we will need to raise additional capital to meet our business requirements in the future and that such capital raising may be costly, dilutive or difficult to obtain and (xiii) the fact that we conduct business in multiple foreign jurisdictions, exposing us to foreign currency exchange rate fluctuations, logistical and communications challenges, burdens and costs of compliance with foreign laws and political and economic instability in each jurisdiction. More detailed information about the Company and the risk factors that may affect the realization of forward looking statements is set forth in the Company’s filings with the Securities and Exchange Commission (SEC), including the Company’s Annual Report on Form 10-K and its Quarterly Reports on Form 10-Q. Investors and security holders are urged to read these documents free of charge on the SEC’s web site at http://www.sec.gov. The Company assumes no obligation to publicly update or revise its forward-looking statements as a result of new information, future events or otherwise.
Crescendo Communications, LLC
Tel: (212) 671-1021
Released January 4, 2019