• Propose to Remove Current Directors and Elect Two Independent, Highly Qualified Nominees
• Highlight Urgent Need for New Leadership to Stop Continuing Value Destruction, Mismanagement and Self-Dealing by Current Board and Management
Miami, Florida, April 5, 2022 — McapMediaWire — Lou Naser and Rudolf Hüppi, stockholders of Coro Global Inc. (OTCQB: CGLO) (“Coro Global” or the “Company”), today announced that they have been nominated for election to the Board of Directors of the Company (the “Board”) at the Company’s upcoming 2022 Annual Meeting of Stockholders (the “Annual Meeting”), which is scheduled to be held on April 11, 2022. Messrs. Naser and Hüppi own 56,000 and 30,000 shares of the Company’s common stock, respectively. Messrs. Naser and Hüppi previously served as independent directors of the Company from June 2020 until August 2021, and Mr. Naser served as Chairman of the Board from January 2021 until August 2021.
In addition, Messrs. Naser and Hüppi are sending an open letter to the stockholders of Coro Global highlighting the continuing mismanagement and massive destruction of stockholder value by the Company’s existing leadership. The letter details how the current Board’s and management’s entrenchment and self-dealing, utter disregard for stockholders’ interests and lack of accountability and oversight have brought the Company’s business on the brink of complete destruction and wiped out nearly 100% of Coro Global’s stock price. The letter stresses the urgent need to remove the Company’s current directors and management and replace them with independent, highly qualified candidates committed to taking immediate action to bring much-needed change and profitability to Coro Global.
The full text of the letter is reproduced below.
April 4, 2022
Dear Fellow Coro Global Stockholders:
Approximately six months ago, a group of Coro Global stockholders holding over 50% of the Company’s outstanding common stock delivered to the Board a request to call a special meeting of stockholders in accordance with the Company’s bylaws. The stockholder group included, among many others, Lou Naser and Rudolf Hüppi, each of whom previously served as an independent director of Coro Global. The purpose of the special meeting was to present a proposal to remove David Dorr and Brian Dorr, two brothers who serve as the Company’s only current directors as well as CEO and CFO/COO, respectively, from office and elect independent, highly qualified candidates nominated by the stockholder group and committed to implementing immediate changes to unlock value for Coro Global stockholders.
Since their appointment as directors and officers of the Company in January 2021, the Dorr brothers have pursued a course of action that has brought the Company’s business to the brink of complete destruction and wiped out nearly 100% of Coro Global’s market capitalization. As a result of the current Board’s and management’s failure to formulate and execute an effective strategy for growing Coro Global’s customer base, the Company has not generated meaningful revenue. The Company’s exceedingly high cash burn rate and inability to raise operating capital have resulted in a severe liquidity crisis and driven Coro Global to the brink of insolvency. The Dorr brothers’ failure to maintain adequate investor relations and shareholder communication has resulted in a deep crisis of investor confidence. As a result, Coro Global stockholders have suffered massive value loss, most prominently evidenced by a drop in the Company’s stock price from over $5.00 per share to $0.002 (two tenths of a cent) per share1 over a period of less than 15 months.
Despite the Company’s abysmal financial performance under the current leadership, on September 10, 2021, the Dorr brothers granted to themselves and their management allies six million restricted shares, for no cash consideration. This enormous grant of free equity worth approximately $5.0 million (at the then-current stock price) was unilaterally approved by the Dorr brothers without any independent director review. We believe this to be a blatant violation of their fiduciary duties and the Company’s bylaws. But the outsized and undeserved monetary value of this free equity grant (which represented approximately 25% of the Company’s then outstanding common stock) paled in comparison to the massive dilution it caused to the dozens of stockholders who purchased Coro Global stock at $5.00 per share.
Ironically, the Dorr brothers attempted to use this massive dilution as grounds for rejecting the majority stockholders’ request to call a special meeting. The Dorr brothers cynically claimed that, as a result of the issuance of the new restricted shares (all of which were immediately voting, despite being subject to vesting over time), the stockholder group no longer held the majority of the Company’s outstanding voting power required by the Company’s bylaws to call a special meeting.2 In these circumstances, we believe that this enormous grant of free, voting equity was an effort by the Dorr brothers to both profit at the expense of other stockholders and take total control of the Company.
Moreover, after Mr. Naser filed suit to compel the Dorr brothers to call the properly requested special meeting (also seeking to invalidate the illegal grant of restricted shares), the Dorr brothers responded by announcing a plan to take a number of actions to “preserve resources,” including suspending services to Coro App customers and withdrawing the Company’s money transmission licenses.3 We believe that the true purpose of these actions, which proved to have a devastating impact on the Company’s business, was to enable the Dorr brothers to use whatever cash still remained in the Company to fund frivolous litigation initiated by them against the Company’s former independent directors and designed to thwart the will of the Company’s stockholders to have a fair election of directors.
These “scorched earth” tactics used by the Dorr brothers to entrench themselves have all but destroyed the Company’s business and wiped out nearly all remaining stockholder value. Coro Global’s stock price has continued its astounding drop, falling from $0.60 per share on September 30, 2021 (i.e., the date on which the Dorr brothers announced their plan to “preserve resources”) to $0.002 per share on March 28, 2022.4 Although in December 2021 the Company announced that it “expects and hopes” to resume operations by the end of Q1 2022,5 that was just another false promise by the Dorr brothers, whose actions have left the Company with no financial resources to operate the business. It is not surprising that, even though the Company has promised to publish monthly updates on its progress,6 no such updates have been published, to date. Nor has the Company filed any periodic reports with the SEC since August 2021, in violation of the SEC rules.7 The Dorr brothers simply have nothing positive to report to Coro Global stockholders – so they are not reporting anything at all.
Coro Global has not held a meeting of stockholders in over twenty years. The Company’s current directors, David Dorr and Brian Dorr, have never been elected to the Board by the Company’s stockholders. Their continued mismanagement, entrenchment and self-dealing can no longer be tolerated. At the upcoming Annual Meeting, we urge you to vote your shares to replace the Dorr brothers with independent, qualified candidates committed to implementing swift changes to reverse the continuing destruction of stockholder value, rebuild the Company’s business and steer Coro Global to profitability.
Immediate action is needed to stop the continuing massive value destruction, mismanagement, entrenchment and self-dealing by the existing Board and management. Time is running out. If the Dorr brothers are not replaced at the Annual Meeting, soon the Company’s business will be completely destroyed and there will be no way back. Stockholders deserve honest, dedicated and competent leadership and a Board that truly represents their best interests. We urge you to VOTE TODAY to protect your investment in Coro Global.
Sincerely,
Lou Naser Rudolf Hüppi
______________________
1 MarketWatch.
2 See “Coro Global Responds to Recent Request for a Special Meeting of Stockholders,” GlobeNewswire, Sept. 30, 2021.
3 Ibid.
4 MarketWatch.
5 See “Coro Global Inc. Expects to Return to Operations in 2022,” GlobeNewswire, Dec. 21, 2021.
6 Ibid.
7 The Company’s latest quarterly report on Form 10-Q for the quarter ended June 30, 2021 was filed on August 23, 2021.
YOUR VOTE IS VERY IMPORTANT, NO MATTER HOW MANY SHARES YOU OWN!
PLEASE VOTE TODAY BY FOLLOWING THE EASY INSTRUCTIONS ON OUR PROXY CARD
PLEASE DISCARD ANY PROXY CARD YOU MAY RECEIVE FROM CORO GLOBAL
TO REQUEST A PROXY CARD OR IF YOU HAVE ANY QUESTIONS ABOUT HOW TO VOTE YOUR SHARES, PLEASE CONTACT:
About the Nominees
Lou Naser is the managing partner of Global Wealth Partners, Inc., a professional wealth advisory firm which he founded in 2010. He has over 30 years of experience in the wealth management and financial services industry. Mr. Naser creates the firm’s vision and oversees all of its strategic initiatives and key partnerships. This includes the firm’s acquisitions as well as global development, worldwide relationships, and private equity investments. Mr. Naser previously served as a director of the Company from June 2020 until August 2021 and as the Chairman of the Board from January 2021 until August 2021. From June 2020 until August 2021, Mr. Naser served as the chair of the nominating and corporate governance committee of the Board and as a member of both the audit committee and compensation committee of the Board. Mr. Naser’s executive and financial knowledge and experience, as well as his understanding and familiarity with the Company and its business from his experience previously serving as the Chairman of the Board of Directors and as a director of the Company, qualifies him to serve on the Company’s Board of Directors. Mr. Naser is 56 years old. He is a U.S. citizen.
Rudolf Hüppi is the founder of ParaLife and, since its formation in 2006, the Chairman and CEO
of the ParaLife Group. ParaLife provides affordable and efficient insurance and other financial services solutions to people in informal economies, in the lower income and in underprivileged sectors. ParaLife is headquartered in Switzerland, operates in Latin America and is currently preparing for market entry in China. Mr. Hüppi previously served as a director of the Company from June 2020 until August 2021. During such period, Mr. Hüppi served as the chair of the audit committee of the Board and a member of both the compensation committee and the nominating and corporate governance committee of the Board. Mr. Hüppi had a long career with Zurich Insurance Group (Zurich Financial Services), which he joined in 1963. He headed up Zurich’s operations in India, held various positions for the company in the United States, and led Zurich’s International Division, serving the insurance and risk management needs of corporate customers around the world. In 1983, he was appointed to the Group Executive Board with oversight responsibility for the group’s activities throughout North America, the United Kingdom, Asia and Australia. He was also appointed CEO of Zurich’s U.S. operations. He became Group COO in 1988 and president and CEO of Zurich Group in 1991. In 1993, Mr. Hüppi joined the board of directors and was elected Chairman in 1995. He resigned as CEO and Chairman in 2002. Since his retirement, and beyond building ParaLife into a leading microinsurance provider, Mr. Hüppi has been supporting various new ventures in China and the United States. He is a Fellow of the Batten Institute at the University of Virginia Darden Business School. Mr. Hüppi’s financial and executive knowledge and experience, as well as his understanding and familiarity with the Company and its business from his experience previously serving as a director of the Company, qualifies him to serve on the Board. Mr. Hüppi is 78 years old. He is a citizen of Switzerland.
Contact:
Lou Naser
(408) 236-7630
