Re: To the Board of Directors, a Challenge
in response to
by
posted on
Jun 25, 2008 05:13AM
YESTERDAYS LETTER by our CEO, your most recent President, lays out a plan of action beyond the early preparation stage. You as our
leadership body have approved this action plan, and have entered into a Memorandum Of Understanding with one acquisition target; and submitted a Term Sheet to another. You have sanctioned this plan and endorsed it because presumably you feel Shareholders will benefit, the demand and price of our stock will rise, and the company will prosper as a result of your business strategy and it's execution.
I/WE CHALLENGE EACH OF YOU to send a strong tangable message of confidence, commitment and personal financial sacrifice to your business plan, your CEO, your Shareholders, and to the investment community, by purchasing a minimum of 400,000 shares apiece on the open market in the next 3-5 business days.
SHOULD YOUR LEGAL COUNSEL suggest that ongoing acquisition
discussions, or financial filings "blackout" rationale restricts your
making such purchases, I/we alternatively challenge you to exercise at least 500,000 options immediately from your Employee Options plan; whether they are "in the money" or not. Is there presently a BTR (Blackout trading regulation) restriction notice issued on the exercise of vested options ? If so, when and why, and what is the expiration date for it's lifting ? Additionally, I believe it would vitiate any message of confidence should you pledge any shares as collateral in exchange for the company to loan you the funds for their exercise.
THE SHARE PRICE TODAY is back to levels not seen since January of
2006, at the time of our 3rd license. Our stock has lost over 90%
of it's value in 30 months, while at the same time the company has
received over $100,000,000 in license fees. In those same past 30
months, as Shareholder Equity evaporated 90%, and the stock has
fallen from $2 to 18 cents, three of your long standing BOD members,
Carl Johnston, Gloria Felcyn and Dr. Falk, alone have received in
excess of $675,000 in cash compensation; and over $600,000 in Stock
Option compensation. During this time of almost complete shareprice
distruction, not once did these three elsewhere employed full time
professionals forgo one penny of that BOD pay; not one solitary
cent ! Never admitting fault, failure or responsibility, they
couldn't even stand in token solidarity with their Shareholders who
have lost so much.
ALMOST UNBELIEVEABLY, in that same time period, only one BOD member
has purchased PTSC shares on the open market, and that only for a
sympathy purchase amount of $13,000. This means that for every dollar
in cash that those three BOD members pocketed, less than 2 cents
collectively was used to buy PTSC stock in the same way and with the
same risk exposure as retail has long been doing.
WHY SHOULD retail and the investment community trust you enough to
invest their capital in your plan, when you're too fearful to even
risk any of your own money ?
IS YOUR MONEY harder earned than ours, is your's more valued, more
precious ?
HAS YOUR part time BOD performance deserved that you be enriched by
$675,000 in cash alone, at the same time our retail shares have
cratered over 90% as a result of your poor planning and your flawed
leadership ?
IN TRUTH, as PTSC Shareholders, we are investing in you, your
expertise, your vision, and your execution. And yet, sadly, in
truth, you don't even have the confidence in your own capabilities to
invest in yourself, you never have.
YOUR INVESTORS are looking for signs of genuine confidence and
leadership. Either put at risk some significant amount of the money
your self governed compensation committee has very generously given
out to you, or get the hell out of our Boardroom.
IF YOU DO NOT accept this challenge, this plea, investors should
demand you submit your resignations by the end of next week.
*if any Shareholder wants, they are welcome to affix their screen name
Brian B (biajj)
Jeff B (Bimages)