I DO NOT think is it BS. In fact, AW is finally talking about what happened! You can read elements of the truth even though he is trying to hide the ugly. Read his words below...
Yes, Protex came to Baltimore
Yes, we were shareholders interested in BIEL success
Yes, we had a certain set of skills (medical device bracing)
Yes, we had a relationship with CVS
-that is paragraph #1
Yes, we designed a knee sleeve. After interviewing AW, Sree, and Keith...we designed a sleeve to match their intended consumer and product use.
Yes, the pricing is accurate. We had been informed to use a certain "sell-in" cost. I won't provide the cost...but it can be estimated by people who know retail. Retailers like 55-60 margin.
-that is paragraph #2
Yes, AW came back and wanted to change the "sell-in" cost because he did not like the Retail price. We stated it was too late for the initial test and that Keith had agreed on pricing. AW stated that Keith is not allowed to make decisions. Only AW can make decisions. AW agreed to kick the can down the road for testing purposed.
-that is paragraph #3
Yes, AW was unsuccessful in working out an agreeable solution. The attempts involved two very unprofessional phone calls (without Keith). We then tried providing pricing model spreadsheets, various ownership/partnership options, and eventually we said he could have the ENTIRE business after 12/31/2019. All of this goodwill was ignored. He still refused to work with team.
Yes, AW then tried to cut Protex out and work directly with Retailer. My assumption is that Retailer ignored his request.
- that is paragraph #4
No knowledge on Paragraph #5. Initial intent was to help BIEL grow and be successful. I currently have ZERO respect for AW...but I still wish BIEL the best. My shares are hopeful for a fresh start.
Quote:
Bioelectronics received a visit from Protex, two individuals. The purpose of their visit was to discuss CVS’s interest in obtaining new wraps and brace products. They proposed designing a knee brace that would include an ActiPatch.
Protex went forward and designed a knee sleeve. They also designed a box that included the Protex name on it. They then went to CVS and received a purchase order without having a license or distributorship agreement with BioElectronics. CVS set the retail prices at $30.49 for the device and $18.87 for the device which was $10.00+ below our prices.
Andy only agreed to supply test devices on the initial locations with the condition that all future purchase orders were to be issued to BioElectronics. Protex did not have the management or financial resources to advertise or promote the product.
Andy was unsuccessful in his repeated attempts to establish a workable relationship with Protex and notified CVS that BioElectronics was not going to provide devices to Protex. Although the product did exceptionally well in the test, CVS chose not to change vendors.
BioElectronics is moving forward in discussions with qualified distributors that will properly manage, price, and advertise our product.
AI
