Capital Growth, Inc.
55 West 200 South
Provo, Utah 84601
September 1, 2000
Letter to Stockholders
Dear Stockholders:
The Company has declared the distribution of one common stock
purchase warrant for every four shares of common stock owned in the Company
(the "Warrants" or "Warrant Distribution") to its stockholders of record on
September 14, 2000 (the "Record Date"), with such Warrants to have and be
subject to the following terms and conditions, among others:
(a) Termination Date: September 30, 2005;
(b) Exercise Price: $1.00, provided that the
Exercise Price can be lowered, in the discretion
of the Company; and
(c) Redeemable at $0.001 per Warrant at any time
upon 30 days written notice if the underlying
shares of common stock of the Company have
publicly traded on the OTC Bulletin Board or any
recognized national medium on which the
Company's common stock trades at a price of
$3.00 for 10 consecutive days, provided,
however, this redemption is subject to there
being an effective registration statement (the
"Registration Statement") covering the Warrants
and/or the underlying shares, that in the
Company's discretion, will allow these Warrants
to be exercised following any such redemption
demand.
The Company believe the distribution, and certainly the exercise
of the Warrants, are subject to prior registration with the Securities and
Exchange Commission and prior registration and/or qualification with certain
state agencies.
This Warrant Distribution will assist the Company in completing
its negotiations to acquire Imagenetix, Inc. as preliminarily outlined in the
8-K Current Report of the Company dated March 23, 2000, which report will be
amended within 15 days of the date hereof to reflect modifications from
continuing negotiations.
We appreciate your continued support.
Sincerely,
The Board of Directors
