An Open Letter To The Board Of Directors Of XECHEM:
It is high time that a shareholder like me to speak openly about the stake of each and every investor who has been supporting financially and emotionally for the successful mass production of Nicosan for a good course. There are millions of sufferers of Sickle Cell Anemia who can benefit tremendously from the mass production of Nicosan, the Orphan Drug approved by FDA, to effectively treat Sickle Cell Anemia. Yet from the moment Dr. Robert Swift and his Board Directors took over the management of XECHEM, there have been unscrupulous acts committed by the Board of Directors that are contrary to the ethical and legal requirements of a public trading company. The list of actions is numerous and serious enough that the Board should be investigated by the SEC and the FBI. If every public trading company’s Board of Directors behaved like XECHEM’s, there would be no more trading of stocks by the companies listed on Wall Street due to lack of accountability. America’s market economy thrives on corporate transparency and there are organizations and people to make sure that there are checks and balances to safeguard the vested interest of the shareholders who effectively are the real owners of any listed company. As it stands, there have been borderline illegal actions to warrant such disciplinary actions:
1). For many months since Dr. Pandey was driven out of the company, the XECHEM Board of Directors has been shutting out all the shareholders by purposely refusing to file the quarterly financial reports to disclose the financial status to the shareholders. Through the company’s spokesman, Stephen Burg, manipulated and misleading information have been given out to deceive and confuse the shareholders. Also, the Board has purposely refused to disclose any positive news of XEKEM in terms of sales, growth, the commercialization and production of Nicosan in the Nigeria operation. Effectively, the Board has managed to drive down the share value of XECHEM to so low a value that filing for bankruptcy protection is the Board’s well planned strategy.
2). As a long term shareholder who has been ardently supporting XECHEM for the past years, I and many other shareholders have seen our common shares become almost worthless. The Board of Directors has helped to destroy the hope and fortune of many a shareholder who wants to support Nicosan’s successful development to benefit millions of SCA suffers. Meanwhile, there is strong suspicion that the Board’s clandestine plot of restructuring has been planned for the exclusive benefits of the Board Directors by leaving the shareholders empty handed.
3). If there is any element of decency left to prove that the Board still has any intention to flourish with the shareholders upon emerging from bankruptcy protection, there must be some guarantee to the shareholders that their existing shares will be as good as the new shares, if and when the new shares are going to be issued to replace the old ones. As well, the essence of Nicosan or its related chemical compounds such as 5-HMF should remain in the restructured XECHEM for the benefit of every shareholder.
4). A word of solemn warning to the Board of Directors: In this day and age of mass communication, rest assure that this letter will be read by all politicians of different stripes to see that justice is being carried out if fraud is committed by the Board. For the Board of Directors to cheat on the shareholders of a pubic trading company for personal gains is a very serious crime. As for the sale of 5-HMF, the Court should consider the following factors: (1) whether the purchaser of 5-HMF and the Debtor negotiated at arm’s-length; (2) whether there is any evidence of fraud, collusion or inside dealing; (3) whether an officer or director of the debtor obtains any lucrative employment package for his or her part in the negotiations.
Perpetrators have to be punished and the shareholders have to be protected by the law to uphold the integrity of the American stock market. This message shall be heard by the SEC, the FBI, the senators and the Congressmen and if necessary, all the way up to the President of the United States.
5). A moral message to the Board of Directors: there is an old saying taking on a different meaning,” You can’t take it with you!” All the fortune of millions of dollars that you plan on amassing from the restructuring will not do you any good if you end up losing it all and going to jail for committing fraud. While you still have a chance, I would ask you to consider siding with your shareholders and emerge from restructuring together with the shareholders. Not only that you might be able to avoid criminal persecution, but also emerge as some kind of hero in spite of the big mess that you have created. Every day you have delayed the mass production of Nicosan, you have caused unnecessary misery to millions of Sickle Cell Anemia suffers. When the day comes that you have to die, you will not be kindly judged by mankind. Life is but a journey and you have just come to the cross road.
Sincerely,
A long term investor
AI
