Shareholders Meeting 10-9-09
I will give you everything I have from the meeting. For Baseball Fan and C-Port, most this stuff is rudimentary and basic. It is probably intended for the guys less informed. I will throw in some of my opinions on occasion. If you disagree with me, no problem. Also had a private conversation with Larry Stambaugh (LS), after the meeting. I will have to filter some of that on a message board, as he only had conversations with 3 guys, so he’d know exactly where the information came from, if it got back to him. I’d like to keep the line of communication open.
-25 People attended the meeting, including Catherine Doll, Carlton Johnson, Larry O’Toole, Peter Berry, Dee Kelly, Scott Rhodes (sic), a couple lawyers from Snell & Wilmer.
-Meeting was very formal. LS didn’t spend much time going through the proposals. Looking back I believe it was because he already knew he had the votes to pass “the reverse stock split”. Also trying to keep any criticism to a minimum. The reason the resolution passed was because shareholders were allowed to change their votes already cast. I originally voted no. Then was convinced by Trey to vote yes, and I changed my vote at the meeting. I believe many that originally voted no, were convinced the company would fail, if it didn’t pass. I went in with the idea of raising some questions, but Peter Berry’s appearance quelled that. Most hard questions would have been very insulting to Berry, an indictment of his failed tenure. Berry left the meeting about 10 minutes early with Dee Kelly, I’m sure as a way of avoiding any angry shareholders in the elevator. When you think about it, Berry went through about 15 million dollars between 2002 and 2009 (with zero sales). So asking for another $10 million doesn’t seem right on a 10-1 reverse split. Shareholders who have been with the company for 4 years like myself with 300,000 shares, could have made $600,000, if the stock just moves to 2.5 points. Now with only 30,000 shares, the stock will have to go from 5 to 25 to make $600,000. Considering how long we’ve had our money in and at great risk, it is a real shot in the gut, and as Howard Beal said on Network, “I’m mad as hell…”. Berry looked tired & beat-up. I wish he would have stepped down sooner. He did not invest in any shares of his own except what he gave himself in options, at no risk. I know he deferred some salary and has a note receivable from the company. But I don’t consider that an investment because he wasn’t qualified in the first place to be on the job. He has is another 900,000 warrants which makes me ill. (Ken Carlson has about 300,000 warrants, Dee Kelly 600,000. Dilution for all of us, for a failed regime.)
-(one on one) LS said after the meeting, in so many words that Cryoport would have failed without the reverse stock split. He had to make many phone calls in the couple weeks to persuade shareholders to go along.
-A shareholder named “Mark” didn’t catch his last name, was very pointed and hard on LS concerning some issues and Enable & Roswell’s commitment to waive there rights and agree with the stock split. He was the only one getting aggressive; Sounded like he had major shares. LS did a nice job of dealing with him.
-R&R would only agree to loan $10 million (net $8.8), if the stock is listed on the NASDAQ. They believe there is “too much stock manipulation of the over-the-counter exchange”.
-(one on one with LS) LS originally approached Fed-Ex about taking an equity position in CYRX, (that was his preferred option) but they said “We’ve done that before and it never works out” and “that’s not what we do”.
-Proposals:
#1: Passed with an 82% vote
#2 35,000,000------Yes
5,000,000--------No
3,275,000------- Abstain
#3 Reverse stock split
28,000,000------Yes
10,000,000--------No
1,275,000------- Abstain
#4 16,000,000------Yes
6,299,476--------No
789,410------- Abstain (Didn’t have a majority)
#5 28,015,987------Yes
11,547,779--------No
807,954------- Abstain
#6 Passed, didn’t get the numbers.
-The reverse stock split will take place at the end of November or beginning of December, It will based on the stock price at that time. Since we don’t have any sales, the only way the stock price can go up before then is major news. Otherwise we are stuck at .42 or .49 cents and the split will be 10-to 1 or 11-to-1, and we, the long-time shareholders will be getting a greased pole.
-I believe the preferred stock proposal didn’t pass because it wasn’t presented as a “make-or-break” option, and it was worded as a “Blank Check” in the proxy, and I’ll sure that scared some people.
-(one-on-one with LS) LS says there is no faction out there that can legally or illegally block out product from being used. Meaning no “dry-ice faction”, no World Courier, no Labor Union, no Mafia, no Tony Soprano. The market is ours.
-LS: “we have only 2 competitors, MVE Storage Products and Taylor-Wharton. But they are very far behind us in technology”, and won’t be able to catch up on time. He said what specifically put them behind us, but I wasn’t able to remember.
-All of our receipts for sales will go to FED-EX first, then they will pay us our fee. That way we use their accounting dept. and their debt collectors. We don’t have to hire and pay for those functions. We will have most of Fed-Ex sales force at our disposal. We will train their sales force. But the customer must use our Web-site or Web-Portal to use the service. We control the shipment.
-(one on one) LS indicated that very little of the $10 Million ($8.8 million net) would be used to build or upgrade facilities. The majority will be used for hiring employees and ramping up inventory.
-(one on one) LS commutes almost everyday (although he travels a lot) from San Diego to Lake Forest. This is quite a long drive in traffic. I’m worried a little bit about fatique.
-Small Users of Frozen shipments spend an average of $1,500.00 per shipment. (paid to World Courier). Large Users spend an average of $665.00 per shipment. Cryoport will charge on average $550.00 per shipment.
-The cost to Cryoport of our shipper is $30.00 per shipment. (Amortized based on a number of uses).
-at a minus 128 degrees or colder there is zero degradation in a medical sample. Dry Ice keeps the temperature at a minus 80 degrees. Cryoport’s shippers keep a temperature at minus 200 degrees for the entire shipping time.
-LS projected sales numbers
Year ended March 31, 2011---- $13,000,000
Year ended March 31, 2012---- $56,000,000
Year ended March 31, 2013---- $74,000,000
Year ended March 31, 2014---- $84,000,000
Year ended March 31, 2015---- $101,000,000
The company will break-even at 25 million in annual sales
-We are currently shipping for the following customers: Quintiles, Quest, Dupont, Emory, Cellulogix International, Zymo Research Corporation, Stencel, BD BioSciences, MD Anderson.
-we are targeting Covance Inc. and LabCorp. If we get 30% of the business of these 4: Quintiles, Quest, Covance & LabCorp, we will break-even.
-We have met “IATA Standards” for shipping on the world’s airlines, which is very difficult. You must be able to drop the container from a distance of 30 feet onto concrete, and have the contents remain intact. Currently many airline pilots are refusing to let dry-ice containers on flights when there are animals on the plane because the dry-ice suffocates them.
-LS is a great guy and I’m glad he’s the guy running Cryoport. He was very gracious to everyone, big and small, and encouraged me to come by the Lake Forest facility anytime and he would personally give me a tour. However, he was not the “dynamo” I read about on this board. He was what you would expect from a CEO running a public company.
-Given what happened today, I would not have invested $250,000 of hard cash in Cryoport in the last 3.5 years. No way, the risk was too high and the rewards are now too low. However, today, if I’m “Red Bull Stockdude”, I load up on few hundred thousand shares at .42-.49.
-All of our receipts for sales will go to FED-EX first, then they will pay us our fee. That way we use their accounting dept. and their debt collectors. We don’t have to hire and pay for those functions. We will have most of Fed-Ex sales force at our disposal. We will train their sales force. But the customer must use our Web-site or Web-Portal to use the service. We control the shipment.
-(one on one) LS indicated that very little of the $10 Million ($8.8 million net) would be used to build or upgrade facilities. The majority will be used for hiring employees and ramping up inventory.
-(one on one) LS commutes almost everyday (although he travels a lot) from San Diego to Lake Forest. This is quite a long drive in traffic. I’m worried a little bit about fatique.
-Small Users of Frozen shipments spend an average of $1,500.00 per shipment. (paid to World Courier). Large Users spend an average of $665.00 per shipment. Cryoport will charge on average $550.00 per shipment.
-The cost to Cryoport of our shipper is $30.00 per shipment. (Amortized based on a number of uses).
-at a minus 128 degrees or colder there is zero degradation in a medical sample. Dry Ice keeps the temperature at a minus 80 degrees. Cryoport’s shippers keep a temperature at minus 200 degrees for the entire shipping time.
-LS projected sales numbers
Year ended March 31, 2011---- $13,000,000
Year ended March 31, 2012---- $56,000,000
Year ended March 31, 2013---- $74,000,000
Year ended March 31, 2014---- $84,000,000
Year ended March 31, 2015---- $101,000,000
The company will break-even at 25 million in annual sales
-We are currently shipping for the following customers: Quintiles, Quest, Dupont, Emory, Cellulogix International, Zymo Research Corporation, Stencel, BD BioSciences, MD Anderson.
-we are targeting Covance Inc. and LabCorp. If we get 30% of the business of these 4: Quintiles, Quest, Covance & LabCorp, we will break-even.
-We have met “IATA Standards” for shipping on the world’s airlines, which is very difficult. You must be able to drop the container from a distance of 30 feet onto concrete, and have the contents remain intact. Currently many airline pilots are refusing to let dry-ice containers on flights when there are animals on the plane because the dry-ice suffocates them.
-LS is a great guy and I’m glad he’s the guy running Cryoport. He was very gracious to everyone, big and small, and encouraged me to come by the Lake Forest facility anytime and he would personally give me a tour. However, he was not the “dynamo” I read about on this board. He was what you would expect from a CEO running a public company.
-Given what happened today, I would not have invested $250,000 of hard cash in Cryoport in the last 3.5 years. No way, the risk was too high and the rewards are now too low. However, today, if I’m “Red Bull Stockdude”, I load up on few hundred thousand shares at .42-.49.
-All of our receipts for sales will go to FED-EX first, then they will pay us our fee. That way we use their accounting dept. and their debt collectors. We don’t have to hire and pay for those functions. We will have most of Fed-Ex sales force at our disposal. We will train their sales force. But the customer must use our Web-site or Web-Portal to use the service. We control the shipment.
-(one on one) LS indicated that very little of the $10 Million ($8.8 million net) would be used to build or upgrade facilities. The majority will be used for hiring employees and ramping up inventory.
-(one on one) LS commutes almost everyday (although he travels a lot) from San Diego to Lake Forest. This is quite a long drive in traffic. I’m worried a little bit about fatique.
-Small Users of Frozen shipments spend an average of $1,500.00 per shipment. (paid to World Courier). Large Users spend an average of $665.00 per shipment. Cryoport will charge on average $550.00 per shipment.
-The cost to Cryoport of our shipper is $30.00 per shipment. (Amortized based on a number of uses).
-at a minus 128 degrees or colder there is zero degradation in a medical sample. Dry Ice keeps the temperature at a minus 80 degrees. Cryoport’s shippers keep a temperature at minus 200 degrees for the entire shipping time.
-LS projected sales numbers
Year ended March 31, 2011---- $13,000,000
Year ended March 31, 2012---- $56,000,000
Year ended March 31, 2013---- $74,000,000
Year ended March 31, 2014---- $84,000,000
Year ended March 31, 2015---- $101,000,000
The company will break-even at 25 million in annual sales
-We are currently shipping for the following customers: Quintiles, Quest, Dupont, Emory, Cellulogix International, Zymo Research Corporation, Stencel, BD BioSciences, MD Anderson.
-we are targeting Covance Inc. and LabCorp. If we get 30% of the business of these 4: Quintiles, Quest, Covance & LabCorp, we will break-even.
-We have met “IATA Standards” for shipping on the world’s airlines, which is very difficult. You must be able to drop the container from a distance of 30 feet onto concrete, and have the contents remain intact. Currently many airline pilots are refusing to let dry-ice containers on flights when there are animals on the plane because the dry-ice suffocates them.
-LS is a great guy and I’m glad he’s the guy running Cryoport. He was very gracious to everyone, big and small, and encouraged me to come by the Lake Forest facility anytime and he would personally give me a tour. However, he was not the “dynamo” I read about on this board. He was what you would expect from a CEO running a public company.
-Given what happened today, I would not have invested $250,000 of hard cash in Cryoport in the last 3.5 years. No way, the risk was too high and the rewards are now too low. However, today, if I’m “Red Bull Stockdude”, I load up on few hundred thousand shares at .42-.49.
-All of our receipts for sales will go to FED-EX first, then they will pay us our fee. That way we use their accounting dept. and their debt collectors. We don’t have to hire and pay for those functions. We will have most of Fed-Ex sales force at our disposal. We will train their sales force. But the customer must use our Web-site or Web-Portal to use the service. We control the shipment.
-(one on one) LS indicated that very little of the $10 Million ($8.8 million net) would be used to build or upgrade facilities. The majority will be used for hiring employees and ramping up inventory.
-(one on one) LS commutes almost everyday (although he travels a lot) from San Diego to Lake Forest. This is quite a long drive in traffic. I’m worried a little bit about fatique.
-Small Users of Frozen shipments spend an average of $1,500.00 per shipment. (paid to World Courier). Large Users spend an average of $665.00 per shipment. Cryoport will charge on average $550.00 per shipment.
-The cost to Cryoport of our shipper is $30.00 per shipment. (Amortized based on a number of uses).
-at a minus 128 degrees or colder there is zero degradation in a medical sample. Dry Ice keeps the temperature at a minus 80 degrees. Cryoport’s shippers keep a temperature at minus 200 degrees for the entire shipping time.
-LS projected sales numbers
Year ended March 31, 2011---- $13,000,000
Year ended March 31, 2012---- $56,000,000
Year ended March 31, 2013---- $74,000,000
Year ended March 31, 2014---- $84,000,000
Year ended March 31, 2015---- $101,000,000
The company will break-even at 25 million in annual sales.
-We are currently shipping for the following customers: Quintiles, Quest, Dupont, Emory, Cellulogix International, Zymo Research Corporation, Stencel, BD BioSciences, MD Anderson.
-we are targeting Covance Inc. and LabCorp. If we get 30% of the business of these 4: Quintiles, Quest, Covance & LabCorp, we will break-even.
-We have met “IATA Standards” for shipping on the world’s airlines, which is very difficult. You must be able to drop the container from a distance of 30 feet onto concrete, and have the contents remain intact. Currently many airline pilots are refusing to let dry-ice containers on flights when there are animals on the plane because the dry-ice suffocates them.
-LS is a great guy and I’m glad he’s the guy running Cryoport. He was very gracious to everyone, big and small, and encouraged me to come by the Lake Forest facility anytime and he would personally give me a tour. However, he was not the “dynamo” I read about on this board. He was what you would expect from a CEO running a public company.
-Given what happened today, I would not have invested $250,000 of hard cash in Cryoport in the last 3.5 years. No way, the risk was too high and the rewards are now too low. However, today, if I’m “Red Bull Stockdude”, I load up on few hundred thousand shares at .42-.49.
