SITO Mobile Issues Open Letter to Stockholders
Current Board and Management Team are Delivering Growth and Value Creation
Stockholders Urged Not to Let the Baksa Group Disrupt SITO Mobile’s Positive Momentum
JERSEY CITY, N.J., May 17, 2017 (GLOBE NEWSWIRE) -- SITO Mobile Ltd. (NASDAQ:SITO), a leading mobile engagement platform, today issued an open letter to its stockholders in connection with the pending solicitation of consents from SITO Mobile’s stockholders by Stephen D. Baksa, Thomas Candelaria, Matthew Stecker, Thomas Thekkethala and the other participants in their solicitation (the “Baksa Group”) seeking control of the SITO Board of Directors.
The full text of the letter is as follows:
May 17, 2017
Fellow Stockholders:
Today SITO Mobile is at an inflection point. There are two paths stockholders can take, and the path chosen will be the most important decision stockholders make as it relates to SITO Mobile.
On the one hand, stockholders can choose to support the current SITO Mobile Board and management team. This is a group that has been executing a clear strategy to deliver growth and value creation, and has SITO Mobile poised to continue to successfully build on this foundation. The current management team continues to improve our sales management process, deliver operational efficiencies and monetize our new product offerings. We have also made significant progress on improving our overall product set by offering advertisers new and enhanced visibility into their ad campaign targeting and effectiveness.
These actions are having a positive effect on the Company. SITO Mobile’s revenues, gross profit, customers, campaign volumes and average campaign dollars have all increased. We achieved record first quarter 2017 revenue of $6.6 million, and expect to report record revenue for the second quarter. This improvement is evidenced in our stock price, which has increased over 89% since February 17, 2017, the day prior to Rory O’Connell joining the Company as interim CEO. Wall Street analysts also agree – as Maxim Group states in its May 5, 2017 research report “…we are encouraged that the new management team has the company back on track…” SITO Mobile is hitting its stride and has the right team leading the Company forward.
In lieu of letting the current SITO Mobile Board and management team continue to execute on their clear strategy for delivering growth and value creation, stockholders have been asked to abruptly hand over control of the Board and SITO Mobile to the Baksa Group or the Singer family, who is separately pursuing a proxy contest for control of SITO Mobile. We believe such an abrupt change in our Board at this pivotal point in SITO Mobile’s history would be value-destructive.
The Baksa Group and the Singer family have made no attempt to publicly disclose their strategy for SITO Mobile should either abruptly gain control of the Company. They have also provided no information regarding the management team they would recruit to lead SITO Mobile. Importantly, neither the Baksa Group nor the Singer family have provided any detail on how they would prevent such an abrupt change from being exploited by our competitors. Our stockholders deserve more.
SITO Mobile remains open to amicably resolving this matter to avoid any further expense and disruption. In fact, we prefer an amicable resolution so that we can focus all of our energy on delivering on SITO Mobile’s significant potential. Unfortunately, to date, SITO Mobile has received no indication that either the Baksa Group or the Singer family is prepared to constructively engage with SITO Mobile. Our number one priority has, and always will be, to serve the best interests of all our stockholders. We will continue to take steps that we believe are necessary to protect those interests.
We believe the choice at this critical time in our Company’s history is clear. Do not disrupt the positive momentum at SITO Mobile. Stockholders should discard any gold consent card and materials they receive from the Baksa Group and vote the WHITE consent revocation card today to support the Board and management team that are committed to creating stockholder value, and that have already proven they can do so. Any stockholders who have questions or need assistance in revoking their consent on the WHITE consent revocation card should contact SITO Mobile’s proxy solicitor, MacKenzie Partners, at (212) 929-5500 or toll-free at (800) 322-2885.
We are at the center of the mobile media revolution, and I am more confident and enthusiastic about our future than ever before.
Thank you for your support,
/s/ Betsy J. Bernard
Betsy J. Bernard
Lead Independent Director
Morgan, Lewis & Bockius LLP and Sichenzia Ross Ference Kesner LLP are serving as legal advisors to SITO. Mackenzie Partners, Inc. is serving as SITO’s proxy solicitor.
