LETTER TO SHAREHOLDERS
Las Vegas, NV (March 12, 2001)
Dear Shareholders,
In April, I will begin a program of selling a portion of the PurchasePro common stock that I currently own. Under the selling plan, I have deposited shares with an investment bank with instructions to sell shares on each of the next 250 trading days, provided that the trading price is at least $15.00. As the stock price rises, I will sell additional shares, up to a maximum of 20,000 shares in any one day.* The bank will have no authority to expand, limit, or suspend such daily sales.
I plan to sell this portion of my shares first to repay existing debt, including debt which I incurred in purchasing $20 million worth of PurchasePro stock during 2000, and thereafter to diversify my personal financial portfolio. I believe a program of limited, daily sales allows me to make conservative personal financial decisions, while retaining my financial commitment to the long-term success of PurchasePro.
Many of you know that I made a commitment not to sell any of my holdings in PurchasePro until the company achieved cash profitability. In fourth quarter of 2000, we reported for the first time cash earnings per share. I also want to point out that during the year 2000, I did not receive any compensation in the form salary or bonus, nor was I granted any options since our initial public offering.
It is important for you to know that my involvement with PurchasePro has not changed in any way. I love this company and devote every waking hour to making it earn a significant return on your investment.
I have chosen the mechanism of pre-established sales in predetermined amounts to help reduce any concerns that I might be selling at times when I have information that you don't have. I hope that by announcing my plans in advance, I am making it clear that my decision isn't based on some positive or negative current event or circumstance.
Lastly, you should know that even after completion of this program, my holdings in PurchasePro will continue to represent the vast majority of my net worth. I believe strongly in the current and future growth and profitability of PurchasePro. My commitment to you is to continue to drive value for all of our shareholders.
Very truly yours,
Charles E. Johnson, Jr.
* As the stock price rises, I will sell between 2,500 and 20,000 additional shares per day according to the following predetermined schedule. Even when the stock exceeds $50, my daily sales will represent less than one-half of one percent of our recent daily trading volume:
At $15 and above, 2,500 shares per day
At $20 and above, 5,000 shares per day
At $25 and above, 7,500 shares per day
At $30 and above, 10,000 shares per day
At $35 and above, 12,500 shares per day
At $40 and above, 15,000 shares per day
At $45 and above, 17,500 shares per day
At $50 and above, 20,000 shares per day |
