RE:RE:RE:RE:RepliCel Life signs LOI with CEO for asset purchaseHi Metzger:-
Just advised the British Columbia Securities Commission of my concerns.
Subject:- Request to deny members of the Board of Directors of Replicel Life Sciences from voting on the Purchase Offer from a private British Columbia company owned by Andrew Schutte, CEO of Replicel Life Sciences.
Dear Sir:-
Shareholders of Replicel Life Sciences were informed on Monday March 18 via a news release that a private British Columbia company owned by Andrew Schutte was offering to purchase the assets of Replicel Life Sciences. The 'unusual offer' does not include any cash consideration. The offer entitles Mr. Schutte, who has approximately 27% of the common shares of Replicel Life Sciences a 92% share of all future revenues from sales and royalties (after 'expenses') while the majority 73% of shareholders settle for the remaining 8%.
The Replicel Board of Directors has approved bringing this deal to a full vote. The Company has 6 Directors including Mr. Schutte. Another Director holds 15.44% of the common shares (10,034,537 shares). Three other Directors have between 300,000 and 900,000 shares. Despite the fact that 5 out of the 6 Directors stand to lose considerably in approving to bring the motion to a shareholder vote, it was approved (They will become part of the '8%' if the purchase is ultimately confirmed).
I am requesting that the British Columbia Securities Commission restrict voting on this offer to purchase to non-Board Members only. It defies logic that sophisticated individuals with a significant amount of money invested in the Company would vote for something which is not financially in their best interests. If they are allowed to vote, the proposal will probably go through and once completed the Board Members could potentially receive some of the '92%' share of Mr. Schutte's sales revenue and royalties for their 'co-operation' from a private company that has very little oversight.
Thank you for your consideration.