A press release battle over which companies have the right to purchase and sell grown in Barbados cotton has journalists, news media and blogs so confused that nobody seems to know the truth about anything when it comes to “Sea Island Cotton”.
This confusion is deadly to the value of our cotton on the world market because the added value in cotton grown in Barbados comes from the brand not from the cotton itself. Our cotton is expensive to produce due to the lack of economy of scale, the higher labour costs to grow and harvest and higher processing and transportation costs to get it to market. IF our cotton is “better” than cotton grown in other places it is probably only incrementally better, and not superior enough to justify the price differential from cotton grown by China, India and other mass-scale producers.*
So what we really have is the brand, the name… and now there is confusion.
Just read the below press releases from Adlai Stevenson, the CEO of “ECCI” and rival Kyto BioPharma Inc. and you’ll see these brands or names mentioned…
Exclusive Cottons of the Caribbean Inc. “ECCI”
West Indian Sea Island Cotton
Barbados Sea Island Cotton Inc.
Genuine Certified West Indian Sea Island Cotton
Another company used to market our crop as “Caribbean Sea Island Cotton“
You’ll also see that while Mr. Stevenson’s press release says “We buy all West Indian Sea Island Cotton grown commercially in Barbados and process that cotton…”, that statement falls short of saying that ECCI buys all cotton produced in Barbados. ECCI says it buys all the “West Indian Sea Island Cotton”: whatever that means. The headline on the release doesn’t say “still retains all rights to ALL Barbados-grown cotton”… it says “still retains all rights to Barbados-grown cotton”
That missing word could be a big deal.
The cotton industry in Barbados has had rough times in the last fifteen years, including troubles surrounding the ownership of the brand and processing companies, with the Barbados Defense Force once sent to seize everything at gunpoint and against a judge’s order, and some of the involved foreign investors threatened and arsoned! In June of 2013 we also told readers about an overly-slick stock scheme involving Barbados cotton.
So good luck to the poor folks who rely upon cotton to make their living in Barbados. The big money boys are fighting again.
Here is Adlai Stevenson’s Press Release, and then we’ll have the press release from Kyto BioPharma Inc….
* According to the National Cotton Council of America, the top ten cotton producing countries are (in order) People’s Republic of China, India, United States, Pakistan, Brazil, Uzbekistan, Australia, Turkey, Turkmenistan and Greece.
Exclusive Cottons of the Caribbean Inc. still retains all rights to Barbados-grown cotton
Exclusive Cottons of the Caribbean Inc. (ECCI), the company responsible for transforming West Indian Sea Island Cotton (WISIC) into a viable industry, has taken issue with inaccurate statements about Barbados’ cotton industry being made in a press release being circulated on Internet news websites and blogs in the United States (US) and Barbados.
ECCI says that the release and iterations of it which appeared in the US before being picked up by local media and blogs state that a Canadian bio-pharmaceutical company called Kyto BioPharma Inc., had recently announced that it was acquiring the outstanding common shares in a company called Barbados Sea Island Cotton Inc. (BSC). The release also stated that a Jonathan Bryant will be named President and Chief Operating Officer and Director of BSC after the share exchange has been completed.
The release went on to say that BSC, “through political relationships, industry experience and proprietary investments in the Island of Barbados, has secured the rights to manage the production process through a vertical integration plan encompassing all aspects of growing, harvesting, ginning, spinning, knitting, assembling and selling premier “Genuine Certified West Indian Sea Island Cotton” finished goods.”
An iteration of the release also stated that BSC had secured “all rights to manage” the production of products from the island’s cotton.
Chief Executive Officer of ECCI, Adlai Stevenson, says this is inaccurate and that ECCI has never had any business relationship or arrangement with Barbados Sea Island Cotton Inc. “We are the exclusive and sole legitimate buyer of cotton from farmers in Barbados. BSC has never purchased any lint, yarn, fabric or finished product such as shirts from Exclusive Cottons of the Caribbean Inc.,” Mr. Stevenson emphasized today.
He added, “We buy all West Indian Sea Island Cotton grown commercially in Barbados and process that cotton through ginning and other equipment at our plant in Groves St. George.
“We have made efforts to find out whether and where BSC is incorporated. Preliminary searches of the Corporate Affairs and Intellectual Property Office database indicate that BSC has not been registered or incorporated in Barbados under this name. We have had no response from the principal or representative of BSC regarding the specific registration location and office address for BSC.”
Exclusive Cottons of the Caribbean Inc. is a Public/Private collaboration incorporated in Barbados in 2004 comprising a group of cotton growers, local and Caribbean individuals and businesses, and the Ministry of Agriculture. In 2012 the industry generated over US $1 million in foreign exchange to the economy.
“The industry is also on the verge of expansion with over 300 acres to be planted next month to satisfy increased demand from our partners and to have more fabric available for local designers and manufacturers,” Mr. Stevenson said.
Kyto BioPharma Inc. Announces Letter of Intent to Acquire Barbados Sea Island Cotton Inc.
PALM BEACH GARDENS, FL–(Marketwired – Jul 22, 2013) – Kyto BioPharma Inc. (“Kyto”) (OTCQB: KBPH) is pleased to announce that it has entered into a Letter of Intent to acquire all of the outstanding common shares of Barbados Sea Island Cotton Inc. (“BSC”) through the issuance of 10 million common shares of Kyto to the shareholders of BSC and BSC satisfying Kyto’s outstanding debt on closing. BSC, through political relationships, industry experience and proprietary investments in the Island of Barbados, has secured the rights to manage the production process through a vertical integration plan encompassing all aspects of growing, harvesting, ginning, spinning, knitting, assembling and selling premier “Genuine Certified West Indian Sea Island Cotton” finished goods.
Barbados Sea Island Cotton is accepted as the finest cotton bar none. It currently represents only one ten-thousandth of a percent of the $32 BN USD annual market and thus carries a premium. BSC has plans in place to increase production and market the finest cotton products globally through its own brand to existing buyers.
Closing of the transaction is subject to due diligence, finalizing a private placement of Convertible Debentures of BSC for a minimum of US$1,000,000 and a maximum of US$1,500,000 and BSC completing its financial statements. Closing is anticipated to occur on or before September 30, 2013.
There are currently 12,998,482 common shares of Kyto issued and outstanding. Upon completion of the business combination and the issuance of 10,000,000 common shares to the shareholders of BSC, Kyto will have 22,998,482 common shares issued and outstanding.
In conjunction with closing the business combination, all of the directors and officers of Kyto will resign and will be replaced by nominees of BSC. The officers of BSC at closing of the share exchange will be as follows:
Jonathan Bryant President & Chief Operating Officer and Director
Conrad Wall Vice President Marketing and Sales
Founder, CEO, CFO and Chairman of the Board. He has worked with leading International Healthcare and Telecommunications Companies and has run projects with Governments in Europe and the Caribbean. He has extensive experience of project management and has a published medical research background as well as corporate experience at management level.
Leading Brand development professional with 15 years experience of Global Brand Management. Conrad Wall will run the projects marketing and branding efforts including the online presence. Conrad has significant contacts and reach in Asia one of the key target areas.
Note: This press release contains “forward looking statements” as defined in the Private Securities Litigation Reform Act of 1995. These forward-looking statements are based on currently available competitive, financial and economic data and management’s views and assumptions regarding future events. Such forward-looking statements are inherently uncertain. Kyto BioPharma Inc. cannot provide assurances that the matters described in this press release will be successfully completed or that the company will realize the anticipated benefits of any transaction. Actual results may differ materially from those projected as a result of certain risks and uncertainties, including but not limited to: global economic and market conditions; the war on terrorism and the potential for war or other hostilities in other parts of the world; the availability of financing and lines of credit; successful integration of acquired or merged businesses; changes in interest rates; management’s ability to forecast revenues and control expenses, especially on a quarterly basis; unexpected decline in revenues without a corresponding and timely slowdown in expense growth; the company’s ability to retain key management and employees; intense competition and the company’s ability to meet demand at competitive prices and to continue to introduce new products and new versions of existing products that keep pace with technological developments, satisfy increasingly sophisticated customer requirements and achieve market acceptance; relationships with significant suppliers and customers; as well as other risks and uncertainties, including but not limited to those detailed from time to time in Kyto BioPharma Inc. SEC filings. Kyto BioPharma Inc. undertakes no obligation to update information contained in this release. For further information regarding risks and uncertainties associated with Kyto BioPharma Inc.’s business, please refer to the risks and uncertainties detailed from time to time in Kyto BioPharma Inc.’s SEC filings.