Post by
Jaro1977 on Aug 11, 2020 1:23pm
From citoyen over at investhub
FWIW... I sent the following jointly to Shawn Shirazi, Roger White and Kristina Hachey late last week. It's admittedly long, somewhat repetitive and some of the statements may not be 100% accurate or informed. I also wish, in retrospect, that I'd mentioned my ongoing excitement about the potential of TLT's technologies..and some other items. But I wrote it because the company needs to know how so many longtime shareholders are feeling. I don't post on Stockhouse, but if anyone reading this does and thinks it worthwhile, feel free to post it there...and encourage readers there to also contact the company with concerns / constructive criticism. Really hoping we can get the company off their asses re these matters...and others that shareholders have.
Hello all,
My name is ______ and I have been a shareholder since 2014. Roger, you and I have spoken on 2 or 3 occasions. Kristina, I have spoken twice with you recently and along the way, with ShuShu and Amelia, your 2 IR people. I am writing you collectively because it's important that you all understand what so many shareholders like myself have been feeling for quite a while now...and the danger the company is in as a consequence. I base this on what I have been reading on the Stockhouse (SH) and other message boards. So that you know, I am not a contributor on SH, only a reader. I do understand the limitations of such message boards and the short-term, ill-informed or ill-intentioned motives of some posters. But I assure you, there are also many who are bright, loyal, informed, well-intentioned and focused on the longer-term success of TLT. And many of those are losing patience with and confidence in the company. Since the financing and related dilution of last year -- how it was handled and communicated -- that sentiment has been accelerating, despite some encouraging news concerning TLT's actual science and progress in the interim. It comes down to a growing loss of trust between the company and its shareholders for a number of reasons, including inadequate efforts to communicate transparently and empathically with loyal shareholders who have entrusted you -- senior management -- with their hard-earned investment dollars for years now.
I will be as brief as I can and will mostly avoid speaking of the medical/scientific matters of which my knowledge is admittedly limited. My experience has largely been in communications and -- separate from the scientific disappointments/mistakes contained in the news release of 7/30/20 and the obvious covid-related difficulties -- TLT, imo, needs to show more regard and respect to its existing shareholder base and pay more attention to attracting new shareholders. Connected to this, more attention needs to be paid to letting your shareholders know the company is being actively and prudently managed. This is not only about your science, which most are generally still excited about. Few if any of the thoughts below should cost much to implement. It is mostly about adopting an attitude that your shareholders are your working partners, not a dumb, pliant and infinite source of patience and funds. Intentionally or not, that is the sense you have been messaging to many.
Some general suggestions, in no order and not a complete list:
* As the CEO, we need to hear from Shawn more. A better sense of the one(s) running the show and his sense and vision of and for the company....and his understanding of the serious concerns from the shareholder POV. I know it is sometimes difficult to find the proper, legally appropriate language, but this is sorely needed. You are a tiny startup and beyond PR's, many companies write "letters to shareholders" which connect beyond strict news items. Both past IR employees seemed extremely tight-lipped...and almost scared to talk about real concerns. Again I know it's delicate...but your shareholders need more from you. Right now, the company does not seem that it is running well...or being especially well run. Part of this is because we are simply left in the dark, having to guess about so much.
* Most shareholders aren't aware of the measures TLT has taken to save $$ during this covid shutdown. Why? Because you haven't told us!! If employees have been furloughed or reduced, as I now understand they have, shareholders need to know. Otherwise we worry that TLT is still burning through our limited capital at a full-employment rate. You guys haven't mentioned anything about overhead reductions and seem unaware that it's is a VERY sensitive subject to your shareholders, I assure you. You have a few million in the bank, but we all know how quickly that can be drawn down with all the expenses which lay ahead. Almost everyone fears another share/warrant sale and more dilution, especially with all the resentment ... and share price destruction... the last one engendered. It costs nothing to let shareholders know how you are economizing, and it lets us know you are on the ball and vigilantly watching expenses. How can you not be addressing such matters or realize that such is a vital concern to your shareholders??
* Your last PR mentioned serious oversight on TLT's part and perhaps elsewhere, but nothing about how that might be remedied or anything about whether all or some of the ph2 patients will now have to start ph2 again from scratch... or whether any TLT oversights might result in any kind of legal liability for the company. These omissions obviously are the source of very real and confidence-eroding anxiety. Probably for you too. Also, much of the PR was not written in a way that is understandable to your lay shareholders. As such, some of the more positive portions likely got short shrift and were overlooked by much of your audience.
We may not like some of the answers, but all of it is more important to shareholders than you might realize...and we need and want to better understand these developments.
* If the company admits to failures in its procedures, some of the testing protocols and/or decisions made by TLT's advisory board, what is being or will be done to insure that won't happen again? WE NEED TO HEAR THIS STUFF! If you are not ready to speak on this subject, we at least need to know that you'll be following up ASAP with shareholders re this. Again...an indication of empathy with shareholders and a sense of what's needed to rebuild confidence. People don't simply forget when you don't deal with important and germane corollary questions.
* Has there been any indication about resumption of trials in Canada or even the US? I assume not yet, but aside from a very short mention in Shawn's brief April 2020 quarterly report, your shareholders need to know -- and it needs to be said -- that TLT is pro-actively all over this issue and will keep shareholders up to date as soon as it hears anything. And btw, are there other trials still going on in Canada with other companies for other drugs? I have the sense that some other non-covid-related trials continue...am I wrong? And what is the status of the other announced Canadian test sites? Are they ready to enroll patients when restrictions are lifted? Is there also a hold on the now US FDA-approved testing? Again, clinicals from other companies appear to be continuing here in the US, even if in a reduced manner. What is going on with TLT's US clinicals plan? You never speak about any of these matters.
* Again, I know it's delicate to discuss, but we also need a better sense of what is going on with other potential indications for our PDT procedures, TLD 1433 and other proprietary compounds. Anything at all to be said, for example re the work being done at RCCC? Elsewhere? Is TLT continuing with any research activities of its own re new indications during this period of clinical shutdown? What is the status? Your site shows researchers on staff. What are they doing? No one is looking for "fluff" nor ironclad guarantees of future success, but it is natural to want to hear about aspects of the company's work that can contribute to its success and reignite some sense of excitement in TLT's amazing potential -- the reason we all originally invested and are still here. This is something the company badly needs right now.
* I recently found important items on your website that were over a year old. After mentioning them, these have since been corrected, but how did they go unattended for so long (over a year)?? Contributes to the impression that no one is quite paying attention.
* Your official PR's are still not getting through to my US brokerage (Schwab) so that it shows up on my stock watchlists as a news item. Do they get through to any US brokerages? Is your PR/news service giving you best value for your money? I have asked several times about this and still no answer one way or another following promises to "check into it". PR's showing up as news items on US brokerage newsfeeds are an important means of introducing new potential investors to TLT. (I'm assuming that they do show up on Canadian brokerage newsfeeds. Do I assume correctly?)
* Would you consider doing a general shareholder conference call before the 9/24/20 AGM? If you are truly prepped for the questions that would come your way, I think it'd be a very helpful antidote to the July 30 news release....a good "surprise" for shareholders and an opportunity to set things on a better course. This is the kind of thing that can really rebuild confidence and positivity if handled and prepped for properly...and give shareholders more reasons to remain should the markets be faced with a serious downturn.
I'll stop here for now but please do understand: many of your longtime shareholders generally feel as I do....that you need to be more attentive to and respectful of shareholder concerns...and more active in your efforts to communicate understandably and as thoroughly as possible. To actively improve how you are perceived by shareholders and the larger world. If not, you'll likely find that decreasing shareholder confidence and patience will only continue, which in turn can translate into further -- and perhaps company-threatening -- share price erosion with astonishing rapidity, especially in any big general market sell-off. Roger's continuing share purchases help some and are noticed and appreciated. I hope they pay off in a big way. But it's not enough.
Again...much of the above are not big cost issues, aside from engaging someone who can spend the time to research and write clearly and well about company activities, as well as a little time for you and your lawyer(s) to vet the results. And then an adjusted re-write. I'm sure there are many qualified free-lancers available in Toronto and I'm sure you'll agree that with over 300M TLT shares fully diluted and every .01 move in share price representing 3M dollars in market cap, that would be money well spent and a big potential ROI. Additionally, the necessary company attitude adjustments toward a more generous, inclusive and respectful view of your shareholders costs nothing at all.
Please know that in spite of any apparent criticism, my intentions are honorable and meant to be constructive. I hope they are taken in that spirit because I assure you: many, many shareholders are feeling some version of what I have written to you. We are all looking for and need more reasons to stay.
If it is of any interest, please let me know how best to follow up with you regarding any of the above. I would very much like to hear your thoughts.
With thanks for your attention, apologies for the length and surely some repetition -- and best wishes for good health and spirits and success in this very challenging time.