May 3, 2021

To Our Shareholders,

I want to take this opportunity to answer a question that has come up as a result of my interactions with you over the last week or so: “What does Puget do and how does it go about doing it?  


To answer that question, I would like to focus on our four lines of business. Puget, as we have said before, aspires to become an Incubator of new companies and proprietary technologies. In doing so, we seek companies that have high potential for growth with deep domain expertise and seasoned management that need help in expanding their already-proven successful business model. These companies have a lot of potential but are in that “middle market” where they are not quite able to tap into the resources they need for continued growth such as access to the capital markets and/or eventually becoming public entities themselves. We offer these companies the ability to become part of Puget with the option of being spun out as a public company within three years after a period of maturation. If the company chooses to go public, Puget would retain 25% of the newly spun-out company, distributing 60% of that 25% as a dividend to our shareholder base, with the remaining 40% being distributed to the Business Development Company affiliate arm of Puget. Our shareholders would then become the new shareholder base of the newly created public company, with an additional participatory interest in our mutual fund (Business Development Company).


Puget may also, from time to time and after exhaustive due diligence, invest in proprietary technology to develop on our own. These technologies will be wholly owned by Puget. In this case, Puget will seek out partners/stakeholders to bring our technology to fruition through a licensing model. Puerto Rico gives us the advantage of owning all of our proprietary technology through a wholly owned subsidiary there with tax exemptions not otherwise available in mainland U.S.A. Therefore, it is our expectation that income from patents and other proprietary technology developed and improved through our Research and Development facility there would not be taxed. In fact, we have already identified two proprietary technologies, one of which we have already acquired and released the news to the public.


Finally, we may consider a SPAC or a series of SPACS in the future once the regulatory issues surrounding such investments have been further clarified by the SEC.


You will likely see a flurry of activity from us over the next few weeks as we move towards our shareholder meeting and beyond. We will have additional information to share with you through our website, press releases, social media, and/or 8K’s. Either way, we will be in touch. Among the items that we will be posting soon will be a “Use of Proceeds” of our proposed Private Placement for our shareholders to familiarize themselves with the general direction our company intends to take at this stage of its growth through its contemplated funding.


As always, we will keep you informed.

Very truly yours,

Hermann Burckhardt

President & Chief Executive Officer