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Message: My conversation with Don....

The man has excellent communication skills, I will give him that in spades.  The best way to diffuse anger is to agree and empathize.  

I asked about the cancelled presentations in Paris and NYC, and he said they were due to scheduling conflicts, either with other confences/symposiums, or with meetings regarding financing with HL.  When I told him of my concern over the lack of communication, he agreed and basically said it was something he would be looking into fixing.  With respect to R&R he said the financing was more important than...let's just say I don't think he thinks much of that particular conference. 

When I told him how I couldn't fathom how someone with Clayton's background could think that putting something up on the corporate website did "not" constitute wide dissemination, he completely agreed with me and said he would address the situation.

As for the San Diego presentation with the slide that had the wrong debt figure, wrong share count and wrong MC, he said the deck was provided by a 3rd party company, (out of NYC if I remember correctly).  I asked him how he handled it.  "What did you say, something like I don't know where those numbers came from the actual figures are....that must have been embarassing".  He replied that...that was basically the way he handled it, and that after doing hundreds of presentations he knows how to deal with glitches.

I also brought up how, when the  company PR'd their financials and MDA with the PR saying the links were on the website, and they werent'.....and how Clayton when I called him wasn't even aware that they weren't up.  He again assured me he's aware of the communication blunders, that he's not happy about it either, and that he'll be addressing it. 

I then underlined how....thanks to all these gaffes and blunders, that it could have affected the PPS thus resulting in more dilution than might have otherwise been needed.  I did allow that it was a completely moot (debatable) point because there's no way to know what the PPS would be if they'd done everything perfectly and professionably....its possible that the PPS could still be in and around where it is currently.  On this point he really didn't have anything to say, he just listened.

We talked about the inactive Facebook page, and I told him of facebooks reported 2+ billion active users and how some investors, in conducting their DD and research, some might check to see how the company presents itself on Facebook.  

We also touched on the PR that said the company had "agreed" to modifications to the BETonMACE protocol.  I wanted to know what they agreed to.  He gave an excellent answer, but I'm not going to say to much on what was said.  Suffice to say I told Don that I too have had dealing with goverment mandarins and that I understand the challenges and frustrations.

We touched on a few other points, the call lasted just over 22 minutes (I checked my phone)....I told him I like his presentation style, how his demeanor instills confidence.  I said he reminded me of the character Ben in movie Cocoon, "we won't get any older, and we'll never ever die" and how that actor went on to become a spokesman for a number of companies.  He appreciated the compliment.

The conversation then wrapped up with me asking how many shareholders the company has....how I know the number is publicly available, that I just don't know how to find it....he said he hadn't checked back for a long time (1 or 2 years?) but the last time he checked he said it was 8 or 9 thousand.  I emphathized that being CEO of a public company must be a big pain in the posterior, having to deal with so many people.  I didn't say it but I was implying that any yahoo with 100 shares could be calling, emailing and bothering the company.  He said he won't be doing it again. 

I couldn't resist commenting on the Beacon report and how the author had said the company will need to raise another $60 million or so.....and if he was confident in being able to do so.  He answer, and this I can quote with 100% certainty.  "No comment".  He then said he's successfully raised about $400 million.....to which I replied, "I know your track record, enough said".   

I ended the call by wishing a good weekend and exhorted him to stick a boot up Clayton's rear end, (I didn't use the word rear end)....he told me I should feel free to contact him in the future if I have any concerns.  

Hopefully I won't have to....frankly I'm a little tired of all the mistakes and I just want them to stop.  During the conversation I advised him of my blog and username here....he didn't say much and I was left with impression he's well aware of who I am.  

Don strikes me as an excellent "face" of the company, which is an important function for any public company.  But a CEO also needs to run a tight ship and to ensure excellence from his senior management team. 

I'll be watching to see how he delivers.  

 

 

 

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