Theralase Technologies Inc. V.TLT

Suggested Course of Action

[consultant99]

I continue to feel betrayed by the equity offering that recently closed. Yes I continue to believe in the technology BUT I am extremely p*ssed with management with what has unfolded. So here is what might be done for those that held on and didn&#39;t sell and have so far endured a 50% haircut...<br /> <br /> I am sending a note to Theralase management that goes something like this.<br /> <br /> My name is --------- and my wife and I are long term shareholders with ------------- shares in multiple accounts at --------------.as of Thursday August 1st 2019.<br /> <br /> We are extremely upset with the announced equity sale and warrant sweetener.&nbsp;<br /> Management could have and should have in our opinion presented there case at the recent AGM but did not.&nbsp;<br /> <br /> The equity sale was restrictive and disadvantaged shareholders living in the US and Quebec. The offering had a $25 k minimum thershold which further disadvantaged some existing shareholders.<br /> Theralase used existing staff to contact shareholders yet are paying a third party firm for the marketing associated with the offering.<br /> The resulting dilution of existing shareholders is excessive and would amount to more than 28% if fully subscribed.<br /> There is no apparent hold on the new shares being sold and no apparent mechanism for forcing early redemption of the warrants which calls into question why they were offered in the first place other than for the benefit of the recipients.<br /> <br /> We believe the company must first consult with shareholders before the offering closes. This is&nbsp; a huge sale of equity and request that the company call a special meeting to discuss all the options for financing that were investigated, why this company was chosen, and the budget items for the money being raised.<br /> <br /> Yours truly<br /> <br /> ------------------------- and -------------------<br /> <br /> xxxxxxxxxxxxxxxxxxxxxxxxxxxxxxxxxxxxxxxxxxxxxxxxxxxxxxxxxxxxxxxxxxx<br /> <br /> I believe the company must convene a special meeting of shareholders if 5% of the registered shareholders request such a meeting.&nbsp;<br /> <br /> If multiple shareholders request the meeting and their combined share count totals about 7.4 million shares it will put pressure on management to address the offering.&nbsp;<br /> <br /> Using a common format for the letter will suggest that this is not a bunch of one off disgruntled shareholders but rather a group of concerned investors.<br /> <br /> Lastly it is in every long-term shareholders best interest to form a group that can speak on their behalf. I did this once in another stock I was invested in. I would be more than willing to help out in getting something off the ground if the idea has any traction. Ideally a few of the larger shareholders in the GTA will take the lead.&nbsp;<br /> <br /> It is clear in my mind that management does not have the skill set and experience to raise the money necessary to fund this emerging technology. Consequently shareholder value is being destroyed and development could be impacted.<br /> <br /> &nbsp;&nbsp;<br /> <br />