To all -- Repost of message #510.
Ed. Note--I apologize for reposting this rather long post from earlier this month. I feel compelled to do so periodically until August 1, in order to be relatively certain that infrequent visitors here have not missed a chance to particpate, or comment upon this effort. Here we are several weeks later, once again below $5 share on no volume. It could be a long year...
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Fellow Shareholders: I apologize in advance for the following long post. It is with mixed emotions that I find myself in the position of being the one to suggest that the time to begin aggressively exercising our rights as shareholders in ACEL may have arrived; this, after having patiently supported ACEL and the development of Onconase for more than a decade.
Like many of you, in the relative scheme of things, I am a small investor. However, I have a substantial financial commitment in ACEL, developed over the years. During the past 2 years, I was gratified (no, elated!) to see the completion of Phase II for Pancreatic Cancer; the addition of Mike Lowe and Gail Frasier to lead Onconase towards FDA approval; the second private placement completion; and of course, the eventual relisting of ACEL on the NASDAQ Small Cap exchange. However, in the same period, I have also noted with some concern that ACEL management has tended to increasingly distance itself from its shareholders; the very people who have doggedly supported the company, financially and otherwise, through some very dark times. I sometimes find myself longing for the humanism that Tina Shogen brought to the table, and to the helm as head of ACEL, while I am the first to acknowledge that others possessing different skills were sorely needed to steer ACEL in this final phase of its transition to a for-profit operating company.
In recent months, I have been repeatedly disappointed by the performance of ACEL. Whether by chance or design, the relisting was delayed again and again until it's event status was obscured by the year end rush of money managers to polish up their portfolio's in time for the end of the year numbers to guarantee tidy bonuses in their post-New Year's stockings. Likewise, absolutely no thought was given to the marginability of ACEL shares in connection with the timing of the relisting, or subsequently in working with the Federal Reserve Board to speed up that process. Finally, I have had to watch as average daily share volume dwindles to anemic levels, and our share pricing continues to be unable to demonstrate a solid lower resistance level; continually demonstrating its ability to set new lows over time. Today, we venture below the $5 price for the second time as many weeks. Each time, a moving a little deeper into that downward spiral.
In all this, ACEL management has continually demonstrated an inability to develop and maintain momentum in the market valuation of the company, and in fact seems to evidence a clear disinterest towards improving shareholder value. Despite their notable technical credentials, recent additions to the ACEL Board of Directors do not indicate a change in this position. The reasoning of ACEL management seems to be that "if we complete our technical program correctly, shareholder value will take care of itself". While there is some merit to this line of reasoning, it does not at all take into account the uncertainties of the market place from one day to the next. Due to the extended approval cycle to which Onconase has been subjected, our at-risk position in this regard is, I believe, substantial, and increases with each passing day.
Over the past year, I have been in contact with numbers of other investors who share similar views and concerns to my own; some with more at stake in ACEL, and some with less. Knowing that there seems to be significant number of like-minded investors out there makes me all the more incredulous of ACEL management's actions in this regard. Therefore, I would like to make the following proposal I have also tried to discuss with ACEL management on several occasions, thus far without response, that:
(i) An investor's forum be established to advise the Board on matters relating to improving shareholder value.
(ii) The forum be made up of ACEL shareholders principally concerned with improving shareholder value and reporting to the Board of Directors through their representatives.
(iii) Two (2) additional Directors nominated by forum members, and approved by general ballot, be added to the Board to represent these interests.
Given ACEL management's apparent intransigence in considering this matter, and certainly our investment performance since relisting, it appears that it will be necessary to take the initiative to identify the shareholder constituency which is concerned with improving shareholder value, and which agrees in principle with these ideas, and, to mobilize that block of shareholders to effect a definitive change in company policy in this direction. Towards that end, I would like to request the following shareholder information from like-minded individuals. As a preface, let me say that I am not a proponent of openly disclosing what might be regarded as personal investment information. Those who furnish the information below need not concern themselves with the individual disclosure of information, beyond eventually furnishing ACEL management with constituency size (in total shares controlled) and the aggregate names of the constituent shareholders.
Please consider furnishing the following information to me via fax or email:
Investor Name:
Mailing Address:
Telephone:
Fax:
Email:
ACEL Shares Controlled:
Likewise, please take the time to furnish the name(s) and similar contact information for the stock broker(s) from whom you purchased ACEL shares, options or warrants, as well as other shareholders that you may know. Our ability to identify and contact these individuals will further increase our ability to identify other like-minded shareholders to accurately size our constituent voting block. As a matter of planning, I encourage you to reply, and to encourage others to reply also, by a target date of August 1st. This will provide us with adequate time to prepare for the Annual Shareholders Meeting in October.
To respond by FAX: Please send a fax with the above categories of information provided to (704) 597-9336. Type "ACEL Shareholder Information" in the subject line.
To respond by EMAIL: Please send email with the above categories of information provided to jjenco@epri.com. Type "ACEL Shareholder information" in the subject line. This exact subject line information is important in order for my email system to properly route your message to the proper file.
If you know other shareholders who may wish to receive a copy of this post, they can send me email at jjenco@epri.com and type exactly "ACEL-Send Me Information" in the subject line. I will set my email system to autorespond with the above message stating my position on ACEL stock.
If you would like to receive a statistics on the progress of our shareholder constituency identification project, you may send me email at jjenco@epri.com and type exactly "ACEL-Send Me Stat's" in the subject line. I will set my email system to autorespond with the latest count, updated every week or two, and on the progress made thus far.
Finally, if you are a broker, portfolio manager, or market maker in ACEL stock, I would be very interested to communicate with you on your investment perception of ACEL. If you are a doctor, researcher or other health care professional with first-hand knowledge of the relative therapeutic benefits of Onconase in any application, I would be interested in communicating with you on this topic as well. NOTE: In order to avoid any construed conflict of interest by the SEC in both of the previous cases, I will specifically not accept or discuss any privileged information which you may possess relative to the investment potential of Onconase or Alfacell Corp., regardless of your right to disclose such information.
Thank you all for your forbearance in this unusually long post. I hope that you will join me in working towards developing the market recognition that Onconase deserves, and in maximizing our investment potential in Alfacell Corp. Regards. -John |
