Concerned Dimethaid Shareholders welcome market's response to bid
Stock up over 60% since circular was filed
TORONTO, Sept. 14 /CNW/ - A group of concerned long-term shareholders of Dimethaid Research Inc., whose total share ownership is approximately 10 times that of the current chief executive officer and board members, welcomed the market's response to their proposed slate of directors, announced one week ago.
"We have seen Dimethaid's stock rise more than 60 per cent since we filed our circular on Sept. 7," said Dan Chicoine, a member of the concerned shareholders group and a nominee for director. "The prospect for leadership change at the company has no doubt sparked this strong rise in price, and the support expressed to us by many long-term Dimethaid shareholders has been most gratifying."
"Shareholders are best served by building long-term value -- not by attributing blame to, or casting aspersions on, third parties. That is why we have outlined a new business strategy for the company: one that focuses on what the company can do well and attracting partners for those things that others can do better."
The concerned shareholders have outlined a business plan that would have Dimethaid focus on drug development, using its two promising technology platforms.
"Unfortunately, present management has been unable or unwilling to secure any significant long-term relationships, either in the pharmaceutical industry or in the capital markets," added Mr. Chicoine. "We need a team in place that can work with others to best serve Dimethaid shareholders. Our goal is quite simple: we want Dimethaid to become a profitable company. We believe we can best achieve that goal by working with others and we have a team that has demonstrated its ability to create value."
The concerned shareholders also denied management statements that they intend to institute immediate widespread layoffs at the company. "Throughout this process we continue to be very concerned about Dimethaid's financial status," Mr. Chicoine added. "Shareholders and employees have a right to know how the company is financing its ongoing operations, given that we are now two weeks past the date at which the company said it would run out of money. The lack of any clear signal from management on this matter is very disturbing. But even more disturbing is when suggestions are made as to what we might do if we win the confidence of shareholders. Contrary to management's statements, employees can rest assured they will continue to have jobs on Sept. 22 if we are successful."
Shareholders have until 3 p.m. (Toronto time) on Thursday, Sept. 16, 2004, in order to cast their yellow proxy for change at Dimethaid. Shareholders can vote by phone, on-line or fax, by following the instructions in the recently mailed information packages. Proxy materials can also be found at www.yellowproxy.com.
The concerned shareholders are proposing a board of directors with experience in the pharmaceutical industry and a track record of transforming unprofitable businesses into profitable ones. The nominees for the board are Daniel H. Chicoine, David A. Copeland, Anthony E. Dobranowski, Dr. Henrich R.K. Guntermann, Dr. Klaus von Lindeiner, John C. London and Dr. Jacques Messier.
The concerned shareholders propose that Dr. Guntermann become chief executive officer of Dimethaid and Mr. Chicoine the new independent chairman of the board. Dr. Guntermann is an MD with experience in the life sciences sector, including business development, restructuring and corporate financing. In conjunction with a group of distinguished life sciences entrepreneurs, he founded BioAlliance AG, a German-based life sciences private equity and consulting firm.
More information on the nominees is available in the group's circular, which can be found on the Internet at www.yellowproxy.com.
For further information: on how to vote, contact: Georgeson Shareholder,
Toll Free: 1-888-999-6094, Fax: (416) 366-2476, www.yellowproxy.com; For more
information on the Concerned Shareholders, contact: Dan Chicoine,
Tel: (416) 892-0344, Email: yellowproxy@yahoo.com |
