FOR THE ENTIRE BOARD: Please review and comment
I was thinking about sending this to the company on our behalf ... please provide some honest feed back even it is "don't send it" or "take me off the list" ... TYIA ~ Fox
XeChem International
Attn. Board of Directors
New Brunswick Technology Center
100 Jersey Ave., Bldg. B, Suite 310
New Brunswick, NJ 08901
(Transmitted electronically via email)
RE: Protection of Common Stock Investments
Investors HUB Shareholder Group
Respected Board Members,
On behalf of a group of current common stock shareholders (Shareholders) with a combined stake estimated at approximately 300,000,000 shares of XKEM common stock, being that we;
• believe in the significant value and untapped potential of XeChem International and it’s subsidiaries (the Company);
• are disappointed with the performance of the Company's senior management (CEO & President/COO) and its Board of Directors;
• wish to support specific actions to improve the Company's management and corporate governance, which will better position the Company to realize its significant commercial potential; and
• would like to see a significant and long overdue appreciation in the Company's market capitalization.
It is requested that you immediately consider and act in good faith upon the following issues of concern (Goals) as the overall goal of the concerned Shareholders is to improve the management and corporate governance of the Company and allow the Company to more fully realize the commercial potential of its technology and assets. These actions should also significantly and positively impact the Company's market valuation.
The Shareholders current goals include:
• Holding the current management accountable for its inability to shepherd the Company’s core technological assets and drug candidates through clinical development and into commercialization in an efficient and expeditious manner.
• Seeking the resignation, dismissal and replacement of the Company’s designated Investor Relations Contact (IRC) (Steven Burg) for his managerial failures and his inability to build a following among both institutional investors and Wall Street analysts.
• Requesting that the Company’s Board of Directors hire a top-tier executive recruiter to locate and recruit credible, experienced IRC and other management candidates with track records of successfully building shareholder value while moving drug candidates from pre-clinical development through the clinical trial process and into collaborations or commercialization.
• Increasing the value of the Company and its market capitalization through improving senior management, board oversight, and investment community credibility.
• Identifying and supporting the current Board Members and senior executives with the relevant set of skills to manage the Company's operations, technology development, clinical trials and licensing/partnership opportunities and to protect the interests of the Company's employees and shareholders.
• Identifying and supporting Board Members and senior executives with the relevant set of skills to build a strong shareholder base and strong investment banking relationships to support future capital requirements.
• Supporting and thanking the many dedicated and talented employees and executives of the Company who have been working hard to advance the core applications of the Company's technology platforms and the Company's clinical and collaborative development goals.
• Taking any and all appropriate actions in the event that the Company’s management or Board of Directors are not responsive to these goals, including, but not limited to public relations efforts, direct negotiations, shareholder resolutions, and proxy contests.
Be advised that it is the intent of the Shareholders to protect our investment in whatever way deemed necessary, pertinent and appropriate. The Company is owned by its shareholders, yet individual shareholders - even large ones - have little say on the direction of the Company or important management decisions. Their primary means of influence is the right to vote once a year on the election or reelection of directors whose terms have expired.
The Company is desperately in need of new management and new Board Members who can be better caretakers of shareholder interests. Consider the following facts:
• The Company’s stock has languished over the past few years, with the exception of a few temporary peaks, before falling to its current low.
• Management has been unable to build an institutional shareholder base - in fact, it has been unable to attract and keep a single large institutional investor with 5% or greater ownership in the Company, despite the Company’s exciting technology and market potential.
• Management has failed to win the confidence of or credibility with Wall Street analysts.
• Management has engaged in several dilutive financing transactions that can best be described as "questionable" in both their timing and terms.
• Senior Management has limited relevant prior experience in successfully managing the operations, R & D, clinical trials, investor relations, financing, and overall affairs of a development stage biotechnology company. The Company can find far more experienced and credible senior executives to advance its technology, financing, and clinical trials.
• The best test of the Board's competence is the Company's performance. Despite the Company's poor performance over the last five years, the Board has not held itself or the senior management of the Company accountable, either by replacing senior management or by decreasing compensation.
The Shareholders deserve better performance and if required the Shareholders will establish a well-organized shareholder campaign to achieve protection of our investments.
Listing of concerned Shareholders as follows:
XKEM - IHUB SHARES
(95 share holders)
Mets-----------------41,000,000
Fiat-----------------37,000,000
BigDaddyC25----------23,300,000
Razkyll--------------20,000,000
Minimee--------------11,600,000
SleeplessKnigth-------9,000,000
Goldrush2001----------8,300,000
Habibi----------------6,315,000
ISD-------------------6,000,000
Lochute---------------6,000,000
Tryz------------------5,400,000
Rattling--------------5,200,000
BigDaveR--------------4,750,000
-Tjsiii---------------4,500,000
BackDoorBear----------4,300,000
Redronwal-------------4,180,000
Xyz1002---------------4,160,000
Hinchback-------------4,140,000
Longterm42------------4,100,000
Drifterfcrc-----------3,980,000
mrcsn-----------------3,900,000
Equityseeker----------3,875,000
PennyPlayer007--------3,200,000
LakeViewer------------3,090,000
Foxwoodsfan-----------3,000,000
IceHawk---------------3,000,000
Clrmng----------------2,850,000
Olimar----------------2,810,000
TraderPro------------2,700,000
RetiredGambler-------2,585,000
SunBrook70------------2,560,000
Trazbull--------------2,516,000
Rubco-----------------2,316,000
Zenstinkfist----------2,300,000
Niczar----------------2,200,000
Luke------------------2,200,000
Suezia----------------2,165,000
Gman3-----------------2,160,000
Geoiguy1--------------2,100,000
Sabre68---------------2,050,000
Makingalivingmdtx-----2,000,000
Clenson87-------------2,000,000
BBBlueChip------------2,000,000
Pickleking------------2,000,000
DogLeg----------------1,900,000
RoboPro---------------1,900,000
Dick-Nixon------------1,875,000
easymoneyva-----------1,825,000
2and2is5--------------1,750,000
Moreo-----------------1,750,000
JJGarcia--------------1,725,000
Hogan54---------------1,700,000
Greenhornet1----------1,300,052
den33317--------------1,300,000
StkNvestor------------1,270,000
pchenh----------------1,200,000
MysteryMan------------1,180,000
Mauroe----------------1,020,000
OttomanRosendal-------1,000,000
Siaubas---------------1,000,000
AggieBoy--------------1,000,000
angel2408---------------996,900
Ricklnv-----------------944,000
Building_Equity---------930,000
Ely-Lake----------------850,000
dgilde01----------------810,000
DJ1203------------------800,000
Comand201---------------800,000
purell------------------750,000
BillMoney1--------------700,000
Marilynt----------------650,000
mcdude1012--------------640,000
Cabroncita--------------600,000
TheRaveninexile---------600,000
Rotweiler---------------510,000
Jkujath-----------------500,000
Willie424---------------500,000
Paycheck----------------540,000
Pluknalong--------------460,000
fastws6-----------------442,127
hoper-------------------420,000
NordicViking------------362,000
Nmr1Ballr---------------250,000
ElisComing--------------244,000
runafowl----------------236,000
unclewalledrus----------230,000
JimmyJam----------------200,000
ElanJ------------------211,350
Billmoonrise------------175,000
Bradydrums--------------150,000
Lonestarpilot85---------125,000
Timdoh2002--------------125,000
Jimmur74----------------104,500
devlin52-----------------75,000
Sally77-------------------9,000
-----309,442,929-----
AI
