ElectriPlast: In Search of Management's Better Angels...
By PK
ElectriPlast Blog (EB) Publisher
A few weeks ago, I wrote a piece that was designed to:
· Provoke EB readers and shareholders to vent against the lack of transparency, and the poor communications and management style at the top of Integral Technologies; and to
· Offer Bill Robinson a reality check on the horrific job he has been doing (or more aptly, not been doing) for the past two years.
Out of that effort came many thought-provoking commentaries and links, information we will likely pursue at a future date. Meanwhile, what has happened in Bellingham since my last article? Pretty much the same thing that has happened for the past two years; a confused and often contradictory storyline continues to emerge from Investor Relations. And Bill Robinson continues to neglect the needs of the shareholders, while waiting for news from Jasper.
On the other hand, Jasper continues to make head way. They are making progress in their negotiations and research and development with a number of companies who find these as compelling times to showcase the potential of ElectriPlast.
Doug Mathias, the JARCO CEO, maintains a finger on the pulse of each of these positive activities, according to knowledgeable sources, who also indicate that quite a few of the companies with whom we are negotiating are in the final stages of completing agreements.
This and other information is steadily reported to Bellingham but, for some reason, nothing more than IR’s rosy-colored interpretation of the day seems to make it out of that black hole. Even news that was formerly shared as a press release, such as new patents, etc., is no longer deemed worthy of mention. (NB: Integral had 16 granted patents when they last used a press release to announce a patent. Since then, 24 additional patents have been granted, but not announced by the company.)
Over the past months, I have tried to wrap my mind around the mindset of the two Bills. I think on the fact that they have a novel product which, according to those in Jasper, excels at what it is supposed to do, and I see "the two Bills" doing nothing to assist in furthering its potential.
In my last tongue-in-cheek article, I noted that Bill Robinson was missing and had been on an extended vacation for the past year and a half. Well, one wonders how much of that was truly tongue-in-cheek and how much was truth.
* * * * *
Bill, if you have ever read any of the articles on the EB, then stop reading now and act instead: Answer the questions your loyal shareholders and co-owners of this company have been anxious to hear.
* * * * *
Tell us why the price per share has dropped from $4.10 to its current low without word or comment or justification from you or any of the principals at Integral? I mean, that was only two short years ago… And never once, in all that time, has it been mentioned. As a matter of fact, let’s stick to just that point alone. Please explain why you feel justified in continuing to draw a paycheck and bonuses, while the stock tanks?
And while we are at it, let’s talk about the agenda behind such actions. I mean, no one purposely allows their child to fail, and no one allows their children to be so thoroughly neglected to the point that their once robust forms waste away before your very eyes.
Fortunately, for long disappointed shareholders, our saving grace is JARCO, and its visionary leader, Doug Mathias. But where they are the manufacturing and licensing agents for ElectriPlast; it is Integral Technologies that stands tall as the company in which we own stock. They are the Intellectual Property owner of ElectriPlast, and they are the ones who are supposed to manage the public’s perception of the product as well as the stock.
So, Bill, we have seen your best efforts over the past year and a half, and many have been hurt by the results, with ITKG being worth less today than three-quarters of its former value. Your lack of stewardship has served to lose the momentum the company once had. Also, your management style has stifled the ability of our company to compete on a multi-market platform.
What can be done now?
Well, I won’t ask that you do something that you have found difficult, if not impossible to do in the past. Asking you for openness would be a waste of time. Asking that you establish a game-plan and share it with your shareholders seems a bit much, considering your reluctance to speak to them over the past two years. Instead, I urge you and Bill Ince to look toward your better angels and face up to the fact that you have failed. That being the case, it is time to reconsider establishing a Board of Directors to put this company on the right track.
Will such a move help more than hurt?
Any move along these lines would serve all interested parties far better than the silence and ineptitude we’ve seen to date.
Once again, to those reading, consider this an open forum and feel free to offer a comment.
PK sends…
posted by PK... | 12/09/2008 11:00:00 PM
9 Comments:
Hi PK:
Why even continue with speaking about Bill Robinson?
He is not a good person, not a good manager, should not be in a leadership role with this company and honestly, he is far past abusing his fiduciary responsibilities to the shareholders.
Why should there be a board of directors and why should he step aside?
This man has a golden position. Being on the OTC, with almost no rules, he does not have to account nor answer to anyone for his actions. He does not have to go through any formalities regarding his paycheck, his bonuses, his ethics, his stock options, nothing. It is far to his advantage to allow this free ride to continue for another year.
He wins by accumulating more stock, more bonuses, and $200,000.00+ for another year. Electriplast will eventually happen, however during the past 2+ years of doing virtually nothing, he has accumulated more shares, more bonuses, large paychecks, and I assume health care and life insurance. It is to his advantage to do nothing. He wins more the longer this continues.This seems to be the new American corporate way. Fail or do nothing and you get rewarded.
BR's reward comes in the form of the just closed Private Placement. The PP is his Congressional bailout. He has virtually guaranteed himself another year of a fat salary and bonus, plus perks, and he really does not have to do anything nor answer to anyone. Doug and Jasper are doing all of the work and hand holding while Bill gets paid a lot of money and more stock options. EP eventually has contracts and BR with his 2 million+ shares reaps the huge rewards. This is the new American way.
Please PK, stop beating this dead horse. There is no incentive for BR to do anything for you or I. He's doing an incredible job for himself.
Well PK, I don't think Mr Bill will be answering questions anytime soon. In fact, it shouldn't be too long before he turns out the lights.
A look at last month's 10-Q is revealing. As of Sept 30:
- Cash burn rate of about $350k/qtr
- $785k of cash left
- $684k of liabilities
So, by now ITKG has surely slipped underwater into negative net worth.
The 10-Q also shows:
- Over $9M spent on salaries
- Over $4M spent on lawyers
- Over $6M spent on consultants
I guess the $30M we collectively paid for stock has made some folks rich.
And after all this:
- No sign of a product
- No working prototypes
- No sign of a customer
With 20/20 hindsight, I guess I shouldn't be surprised. There was never any data in the patents that demonstrated the product. And the partnership with JARCO wasn't going to do the trick. JARCO is only a rubber and plastics compounder - not a product development house. They have no unique products of their own and no patents. They just mix up polymer formulations for others.
$30M down the drain and no one has to account for anything. Only in America. I should have know better.
PK
it seems that only Jarco is in a position to illuminate this veil of tears...do you have any contacts there? do you have any information from them about the state of things? Send us a holiday present, if you do...
Interesting blog you write Mr King and good comments on it.There is a journalist called Bains who does articles twice a week for the Vancouver B.C. Sun newspaper on OTC companies.He says they all make money....but not for the shareholders.A success rate of 2.0% which is pretty scary.Some of the companies he writes on have been around much longer than ITKG.
I was priviledged this last summer to receive a reply to my registered letter to Doug Mathias inquiring concerning ElectriPlast's viable commercialization.Three times in the letter he mentioned 2008 as the year ,which gives him very little left on the clock.He said they truly believed in the material science surrounding ElectriPlast and while he didn't mention the word 'disruptive',he did mention 'developmental' twice,as really raising the bar for difficulty.
Next week if I can get past Scott in the front office on Pender St.I intend to offer Billy a degree of financing and see what I can find out about a lot of things.Best to you all.
Seasons Greeting to Everyone.
Great commentary all --
One of the first questions asked is the one that nailed it... Why speak about Bill Robinson?
Why? Because, while it may not seem like it, Integral is the only real way for shareholders (those who are not part of the Employee-Owners of JARCO that is) can profit from ElectriPlast's future successes in the overall market place.
Corporate responsibility is needed before that can occur, and that kind of LEADERSHIP has to start at Integral.
Thus far, for the past 2 years, the CEO has dropped the ball on that front. While some note that he could become re-engaged, and for all I know, is doing just that, I can only speak to what I see here and now; the lack of disclosure and unfulfilled promises; the absence and silence -- the cause and effect...
Well, I can do a bit more, and am doing so by urging for action and disclosure, and at some level, citing encouragement for a product that does indeed work as advertised, and has real-world, marketable applications.
Jasper's involvement here is not a fluke -- were they not present, I, like many others still present, would have bailed long ago. The fact that JARCO CEO, Doug Mathias has spoken to the potential, and dedicated his sales force toward this objective--the fact that JARCO has invested hundreds upon hundreds of thousands in retooling, fine-tuning & testing production methods, and usurping significant space and resources formerly dedicated to their annual 70 million dollar product line...These are telling signs which speak to the belief and dedication JARCO places on the future of ElectriPlast...
Now, the go to Market year of 2008 was prominently featured in reports from Integral and JARCO. RUMINT has it that this could have been met--and while possibly delayed by mere weeks, the goal is rumored not lost.
While the economy and the trickle down impact has had an impact overall, the impact has not dampened the optimism from JARCO's point of view -- leadership and staff there still see ElectriPlast as that company’s future, and its key lead-in to this so-called emerging "Obama Green Economy".
One writer asked on my access or connection with Doug, JARCO’s CEO. While I would enjoy having a chat with Mr. Mathias, I must admit, I have not yet had any direct contact with him. I will work toward that end though, and will hopefully have something better to comment on afterwards (when/if we ever do get a chance to speak)...
In the meantime, for right now, I am off to earn some money so I can do my part in paying-off our national debt...
Cheers and be safe and good to each other this Holiday Season.
PK sends
Those of you that call Scott at investor relations all know that $1 million was recently raised in a private offering. The individual who said "offer Billy a degree of financing" raises this question in my mind. Are we in a position that requires us to pay for information? We are shareholders, that fiduciary responsibility already exists, does it not?
Nobody in their right mind would throw money at this company (based on its historical performance) unless they were given some information that made them think the future of EP is a viable one. I don't know who the "new investors" may be, but I can't shake the feeling like they must have been looked upon as more privileged than the rest of us to be told something that we weren't. Maybe they were sold on Scott's marketing lines - nothing surprises me anymore.
Here's a novel idea - if EP can do what you say it can, how about announcing that Bill and the gang are buying shares in the company. Put yourself in their shoes - would you buy more shares? wouldn't you announce it? There seems to be a significant disconnect here.
The next step is this process to obtain the "better Angels" of management is a CLASS ACTION LAWSUIT.
Anybody in?
How would that work? Does anyone but the Lawyers benefit from such lawsuits?
The bottom line is that everyone wants him / them to get off their collective butts and assume the roles their titles imply.
You raise a good point. Did ITKG management go on a permanent vacation once they had an agreement in place with JARCO? Did they say, "let JARCO take care of the rest"? According to Scott in investor relations that agreement was not an exclusive agreement. Therefore, ITKG management SHOULD still be pounding the pavement. In other words, actually earn your salary and look for additional avenues to commercialization.
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