A plea to all undecided shareholders
For those of you who have still not voted your shares and for those of you who may have already voted and who can still change your vote. I would like to encourage you to vote “No” on the proxy proposal.
There are many reasons why you should vote “No”. But the most significant reason at this point is because we have already lost 90% of our value, so what is the remaining 10%.
Let’s take some risks and maybe we can recoup some of our value and regain some control. On the other hand risk implies that we may loose every last penny. But at this point I am willing to go all in.
As I have communicated in previous postings, I am strongly against the proposal for the issuance of the convertible note and warrants secured by GTCB Intellectual Property.
My biggest concern is that the terms are not favorable to GTCB and these terms are going to force all of the existing long term shareholders out of the company. The writing is on the proverbial wall, as well as in the proxy statement.
Contrary to what some believe, I believe that voting “No” will not cause GTCB to go into immediate bankruptcy, although, chapter 11 is a very strong possibility as one of the outcomes. I believe management will take decisive self preservation actions.
A “No” vote will force GTCB management to go back to the negotiating table with LFB and get better terms and to implement other cost cutting actions. Let’s consider who we are dealing with here.
Desperate times will call for desperate measures, and I am certain that if GTCB management is forced into a corner that they will get creative and construct a better solution in order to preserve themselves and shareholder value as well.
A “Yes” vote will only guarantee the continuation of poor management practices and the avoidance of the hard decisions of implementing cost cutting measures. Furthermore a “Yes” vote guarantees that most of us will not be shareholders of GTCB one year from now.
If we can force GTCB management back to the negotiating table then maybe we can get them to negotiate harder and get better terms. For example I would be willing to support terms that were altered to provide GTCB more breathing room. If we are going to pledge the crown jewels then LFB better come back to the table with more coin.
Maybe the following terms:
$30 Million secured convertible note spread over 2 years @ $15 million per year.
Issuance of warrants combined with the convertible note on an as converted basis not exceeding 45% outstanding shares.
GTCB have the right to redeem the Convertible Note on or before June 1, 2010
LFB Conversion date of June 1, 2010 @ .31 per share
Maybe some type of a buyout clause
Maybe some type of Minority Shareholder rights and clauses
These are just ideas, but what do we have to loose.
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