The idea that our CEO's compensation option package is 2/3 based on NSI shareprice says more to me than any words.
smallcapcenter.com
via CDS
December 12, 2000
Net Shepherd Inc. ('NSI') (CDNX: WEB) Today, recently appointed
President and CEO, Bill Fogg, releases informational press to the
public. Bill Fogg, CEO: 'During my first weeks as President and
CEO of NSI, many NSI investors have shared your thoughts and
concerns regarding current activities at NSI. This release will
be the first in a series addressing operational matters and
business opportunities at NSI.' Areas of information in this
release are the following: current operating costs, current cash
position, CEO's compensation package and the personal biography
of Wim Heijting, NSI Chairman.
Current Operating Costs
Current operating costs shown here apply solely to the day-to-day
cash operating requirements of NSI and its subsidiaries.
In an ongoing effort to reduce its daily operating expense
run-rate, NSI has aggressively reduced compensation costs within
its corporate group. Additionally, NSI is actively negotiating
settlements and terminations to a number of contracts and
business arrangements that will significantly reduce NSI's cash
usage rate. These efforts, while requiring immediate near-term
cash expenditures, will position NSI to move forward into 2001
unburdened by the cost of legacy operations. Moreover in this
regard, NSI is reviewing with its attorneys and chartered
accountants the matter of the carrying value of goodwill and
other intangible assets associated with past acquisitions.
The following paragraphs briefly describe the ongoing funding
requirements of each entity within NSI's portfolio of companies.
Ktopia is currently operating at a monthly cash cost of
approximately US $280,000 and is receiving all of its operating
funds from NSI. This support level will be maintained through
the end of this year. The executive committee will meet with
Ktopia's management team in mid-December to address the level of
continued funding, if any, into the year 2001 and to make
appropriate recommendations to the NSI Board of Directors.
Presently ClickChoice's cash expenditures are approximately
US$125,000 monthly, with that amount entirely funded by NSI. An
ongoing joint venture between The Vanenburg Group and ClickChoice
will aid in offsetting future funding support required by NSI.
Commitments are in place to continue the support of this entity
through the end of the first quarter, 2001 with any commitment
further into the year dependent upon the executive committee's
review of ClickChoice's business plan and subsequent
recommendations to the NSI Board of Directors.
Answers.com, Inc. is presently self-funding its operations and
generating revenue through the sale of its product offerings.
Consequently it is no longer solely dependent upon NSI for its
day-to-day cash operating requirements.
NSI has completed its investment into Kinetiq Inc. There are no
further plans to invest additional funds at this time.
Additionally, NSI currently owns a passive investment in FinTech
Services Ltd. and has no requirements to support that business
financially.
Current Cash Position
NSI's consolidated cash position as of December 1, 2000 was US
$502,000 . Furthermore, a request was made to draw the remaining
US $1,000,000 balance of the NSI's operating line of credit in
support of the ongoing needs of NSI. Vanenburg Group approved the
request and wired the funds on December 8.
Compensation for Bill Fogg, President and CEO
The Board of Directors approved unanimously the following
compensation for Bill Fogg as the new President and CEO of NSI.
Options to acquire three million shares were granted to Mr. Fogg
at a strike price of sixty-seven cents per share. One million
options vested immediately upon acceptance by Mr. Fogg as
President and CEO of NSI. The remaining two million options vest
over time in accordance with the NSI employee stock option plan
although the vesting of one million options will accelerate if
the shares trade at a minimum price of $3.50 for ten consecutive
days, and the remaining options will vest in the same accelerated
format if the shares trade at a minimum price of $7.50 for ten
consecutive days. There is no cash compensation currently given
to Mr. Fogg from NSI. Mr. Fogg will remain on the payroll of
Answers.com, Inc. as its CEO.
Mr. Fogg: 'Our focus through the end of 2000 is to eliminate
both long-term debt and payables associated with previous NSI
operations. Upon conclusion of this process I will issue another
release giving an update on the financial condition of NSI.
Unaudited financial information will be provided for each
subsidiary, including monthly and year to date activity, in the
next release as well. '
Chairman's Business Background
Wim Heijting joined Baan International B. V. in October 1990 as
Account Manager India. In September 1991, Wim was appointed
Secretary to the Board of Directors of Baan International B. V.
and in April 1992 became General Counsel. In January 1995, Wim
was promoted to Secretary to the Board of Directors of Baan
Company N.V. In that capacity he was member of the worldwide
leadership team and spearheaded all main company transactions,
including the company's initial and follow-on public offering,
and provided general support to the Board of Management &
Supervisory Directors. On January 1, 1998 Wim was appointed
Senior Vice President and then promoted to Chief Operating
Officer Central Europe on April 1, 1998. The Central European
region covered the German speaking countries and Eastern Europe.
As Chief Operating Officer he managed the Eastern European
countries and was responsible for the regional Finance, Legal,
Human Resources, Marketing and Information Technology functions.
He resigned March 1, 1999 and went on sabbatical during which he
attended an Advanced Management Program at INSEAD in France.
Wim Heijting, born in 1965, holds a masters degree in Business
Law from Leiden University. Wim is married and lives in The
Netherlands. In January 1, 2000 he joined the Vanenburg Group
B.V. as partner with the position of Chief Operating Officer and
General Counsel.
About NSI:
NSI is an Internet-based technology management company that
accelerates the development of companies in which it has an
interest. NSI has five investments at present: Answers.com,
ClickChoice.com, FinTech Services, KinetiQ and Ktopia.
NSI is traded on the Canadian Venture Exchange under the symbol
WEB.
Contact: Bill Fogg
(403) 802-2054
(626) 817-9889
bill@answers.com
The Canadian Venture Exchange has not reviewed and does not
accept responsibility for the adequacy or accuracy of this
release. |
