Request For the Following Commitment From Mr. M. Jacobs
Dear Mr. Jacobs:
I know that you and your staff have been working hard, yet the sales of the FAST1 are much slower than investors' anticipated based upon previous statements. I hope this does not come as a surprise but I really do want to see PYNG become a success with a very profitable bottom line. One of the problems I think which must be overcome is the gradual loss of faith by investors in PYNG's PR's and / or comments made by PYNG staff over the past several years. If I am not mistaken, the following statements have been made:
5/7/97
"In anticipation of commercial sales beginning in the last quarter of 1997
Pyng Medical Corp. will now start booking firm pre-market orders for the
F.A.S.T. 1TM System. "
10/2/97
"That's why it plans to hit the U.S. market within six months with its
FAST 1 intraosseous infusion system that delivers fluids through bone
marrow into adults", Pyng vice president of research and development
David L. Johnson, Ph.D., said Tuesday at MEDICAL DATA
INTERNATIONAL
INC.'S (Irvine, CA) "Emerging Medical Technologies East" conference."
12/23/97
"The results of these studies will provide the late adopters with the
evidence they need to commit themselves to purchase. By that time,
Pyng's
large-scale production will be in place to meet the resulting demand."
It is clear from many of your past PYNG sales projections going back to
the mid 1990's that PYNG felt at the time that significant sales of PYNG
produced IO devices would be achieved long before now. I suspect that
as
CEO the process of bringing IO devices to market has been a somewhat
trying experience and that you fully realize that PYNG's forecasts were
not
achieved because you did not accurately gauge the time required to
overcome the many obstacles in PYNG's path. I tend to think of you as a
man with a vision. I am sure you have the "end result" of all the hard
work
very clearly set in your mind. I am also confident that with the right
management PYNG will "arrive" so to speak at significant volume
production sales of the FAST-1. However, a man with a vision may not be
what PYNG requires as CEO at this time. I, and I know many other PYNG
investors, believe PYNG needs a sales oriented CEO who can find
innovative ways of overcoming the final hurdles to significant volume
sales.
If, after not achieving your previous forecasts for so many years you still
feel you are the right man for the job then I propose that you publicly set
a
target of selling 30,000 FAST1 units during the period October 1, 1999 to
September 30, 2000. In order to further boost investor confidence a public
statement on your part to the effect that you will tender your resignation
in
the event that you do not reach that target would be appreciated by many.
It is a smart man who knows his own limits and who knows when to pass
on certain responsibilities for which he may not be ideally suited over to
someone with the particular skills needed. Naturally, as Chairman of the
Board with significant share holdings your overall control of PYNG would
not be affected. Provided you gave the new CEO adequate leeway to
exercise his / her skills, it seems obvious that the chances of success for
all shareholders would be significantly increased.
By stepping up to the plate and making a firm commitment to Pyng
investors I believe you will restore a higher degree of confidence which
will
not go unnoticed by the investment community. It will also show that you
are not blind to your own limitations and will set you and PYNG head and
shoulders above so many other companies that ended up out of business
even though they had promising products but not the right people to
bring
those products to market.
So Mr. Jacob's, are you now prepared to make the commitment to PYNG
shareholders to sell 30,000 FAST-1 units in the next fiscal year or resign in
the event that PYNG can not achieve this seemingly modest objective?
A straight forward response posted to this tread would be appreciated so
that all interested parties can see your commitment.
sincerely,
LOR |
