Re: To all shareholders, please read/ there were a few typos and a line missing
in response to
by
posted on
Jul 29, 2010 07:18PM
The following letter was written by Mr. Stan Caplan and was signed by five shareholders including myself, Debbie Schinnerer. Combined we represent about 5% of the PTSC float.
The BoD chose NOT to respond but rather had their attorney send a letter to Mr. Caplan asking that all correspondence be directed to him.
July 19, 2010
Sent by email, fax and regular mail
Patriot Scientific Corporation
6183 Paseo Suite 180Del
Carlsbad
Dear Mr. Flowers and Board of Directors:
We write to you as concerned and frustrated shareholders.
Over the last four years, Patriot Scientific has received tens of millions of dollars in licensing
Revenue, yet its stock price has declined from a high of over $2.00 when licensing first began in
early 2006, to its present level of about $.08.During just the last two years, almost 100% of every investment has been written off, at an approximate loss of some $20,000,000.00. Most recently, the lawsuit filed against our licensing partner, TPL, calls into question the viability of future MMP licensing's and my also add additional risk to the overall value of PTSC's remaining assets.
As a result of all of the above, and other similar factors that could also be discussed, we believe it is time for changes to the Board of Directors.Our suggestion is the immediate appointment of Stan Caplan, with whom you are well familiar.As you are aware, Mr. Caplan is a major shareholder and a longtime supporter of the Company who has considerable business experience, and we believe his appointment will bring a much needed perspective of the broader shareholder base to the Company and its Board.
Mr. Caplan will strive to act in various areas.First, he will call for elimination of M&A activity, at least until such time as the Company has sufficient funds and a better plan of evaluation and analysis to engage in such endeavors.Additionally, he will call for significant cost and expense reductions that are long overdue, and will seek resolution of the situation involving PDSG as recently posed by Ms. Felcyn.Finally, he will seek to resume Company communications with the shareholders on a reasonably frequent and productive basis, and provide input on a solution for the TPL
The primary function of a Board of Directors is to provide a return value to the owners of the company they serve, who are its shareholders.When there has been a failure to do so after a period exceeding four years, we believe it is time for the Board to listen to those shareholders, and we thus suggest that you start with this relatively small change.Doing so will likely lift shareholder morale, and may also start the share price moving in the right direction since, currently, many shareholders feel that the Company is seeking to keep them in the dark.
~The End~
What Stan myself and others are trying to do is get SHAREHOLDER representation on the BoD. As with the Congress of the USA, we can VOTE new members in or OUT.
With enough shares behind Stan, we CAN get him appointed to the BoD come this next election and I'm asking for other shareholders to stand with Stan, myself and the others that have signed this letter in an effort to to get Stan appointed and return VALUE to the Shareholders..........'somehow.'
Stan wants everyone to know that he really does NOT want a position on the BoD but he cannot sit by and watch the 'bleeding' any longer. Like many/all?? of us, it has been sickening to watch our investment dwindle away year after year while the BoD continues to take tens of thousands a year in compensation and in some cases, for doing NOTHING.
Stan feels that he has deep insight into the PTSC story/situation and he is willing to throw his hat in the ring and fight for WE the Shareholders.
I for one, commend him for this effort and I will cast my vote for him as soon as we HEAR something from the BoD about the next ASM. I just hope it's NOT in Chicago in the dead of winter again.
Stan is also thinking about organizing a meeting in S. Calif. some time in the near future.
If we come together as a voting block, we can get STAN appointed and I ask for those that will stand with us to PM me. I will then give you my personal email address so we can discuss further.
Sincerely,
Deb