January 13, 1997
Shalom Z. Hirschman, M.D
Chief Executive Officer and President
1250 E Hallandale Beach Blvd.
Suite 501
Hallandale, FL 33009
Dear Dr. Hirschman:
I am writing this letter on behalf of a group of shareholders who have been long time investors (owners) of Advanced Viral Research. I for one have been a shareholder since 1988 and current hold 73,500 shares. I truly believe that Reticulose has tremendous potential in the world-wide marketplace. We have researched this drug back to the early 1960's and find that it has remedies for many of today's viral illnesses, including common influenza.
I am writing this letter for a variety reasons, most importantly, to make you aware that there are many very dedicated shareholders who have invested a great deal of money in this company over the last several years.
We are now asking for a more active role be taken by management in communicating with Advanced Viral's shareholders.
Since the Spring of 1996, we have been encouraged by news of testing results regarding Reticulose. But many in the investment community have some serious doubts about Reticulose, as portrayed by television news programs and financial newspapers such as Barrons.
It was quite clear that Advanced Viral needed new management and serious help with public relations. The announcement of your position as CEO was very encouraging. We envisioned a new organization with a solid management team with a new mission, including goals and objectives which hopefully would be communicated to shareholders. This has not materialized!
On a positive note, Advanced Viral Research is one of the few small (OTC-BB) public companies that actively and regularly files their SEC reports online. But, to date, these 8K and 10K reports have been the only way of obtaining information from the company other than technically written press releases.
We believe that you have an obligation to communicate with your shareholders. We are all aware of previous attempts by Advanced Viral to obtain FDA approval for testing Reticulose. We believe FDA approval is the single most important objective of Advanced Viral, but looking at the latest balance sheet, existing liquid assets do not support this enormous financial endeavor.
As the CEO, who is highly compensated considering the existing financial condition of this company, the shareholders expect and should demand some answers to our specific questions:
1. What is the mission, goals and objectives of Advanced Viral Research?
2. Will there be a shareholders meeting, if so when?
3. Will there be a "Message from the President" outlining number 1 & 2.
4. What is the status of the various studies of Reticulose?
5. What plans do you have for Reticulose relating to FDA testing?
6. How will these studies be funded?
7. Is there a Public Relations firm contracted with the company, if not why?
We hope we have clearly portrayed our position. Current confidence levels of existing investors, are probably at their lowest point right now. It is clear that the company cannot attract new investors or even possibly retain the existing investors at this point without clear direction from the company's new CEO.
We feel prompt attention to these matters is indicated and be seriously considered. We look forward to your response.
Sincerely,
Joseph J. Scotti |
