LKMforward is pleased to announce significant positive developments in our quest to restore the company on a path to compliance and a profitable future for all shareholders. Link Motion responded to an email inquiry by the shareholder group asking for an update about two important topics, i) the payment of the Company’s auditors and securities counsel and ii) whether the Company was granted a further extension of time from the NYSE to regain compliance. We are pleased that on both accounts the Company responded in the affirmative.
While we are deeply frustrated that it took the company so long to accomplish actions fundamental to proper Board governance, we are pleased that our efforts ultimately pressured the Board and the Company to act. We are also pleased that the NYSE has granted the Company some additional time to regain compliance with its listing standards. This is unequivocally a positive step forward. For the first time since LKMforward was launched, it appears the company is taking some of the prescribed measures to remain listed, to regain compliance, and to recover what has been so unnecessarily lost.
However, this is by no means a time for complacency. While positive initial steps, there is still a severe urgency for the Board to act so that the Company can truly recover sustainably. While the payment of the securities counsel and auditors is a fundamental step in proceeding forward, time is of the essence in all matters LKM. The Company must follow through on multiple fronts. We urge the Company and, especially the Board of Directors, to continue to address each of the items contained in the shareholder’s requisition including:
- Putting in place the right management team and leadership to realize the company’s vast potential;
- Establishing processes necessary to update current financials and file its 2017 audited report on Form 20-F including putting in place an acting CFO who can manage this process satisfactorily;
- Address its convertible note obligations in a manner consistent with proper Board governance;
- Restart the execution of its business plans.
We want to thank all of the shareholders and supporters of LKMforward. Our collective efforts have already made a huge difference. There is still so much more to do. We will continue to move our cause forward. If you have not already contributed your requested share of the legal fees (we have asked for a half of penny per share from each of our supporters), please do so now. We have engaged legal counsel on a number of fronts. Some of the fruits of this engagement are apparent as in today’s announcement. Some are on matters yet to be revealed on an as necessary basis.
We have stated from the outset that the most expeditious path to regaining compliance, profitability and shareholder value is through Board action. To that end, we are temporarily suspending further action on the requisition to give the Board time to enact these necessary reforms of their own accord. We want the Board 100% focused on the matters mentioned above. The most expeditious path forward right now is for the Board to take the actions prescribed in the requisition with regards to directors, the CFO, other management members, and action regarding the filing of its financials, the satisfactory conclusion of the outstanding convertible note, and the execution of the smart ride business. Given this new focus, we hereby demand the Board to utilize the upcoming Annual General Meeting (AGM) to make all such matters that require shareholder votes as part of the agenda items and proxy materials, including the changes in directors and board make-up. Given that the AGM must be held in December, this is the best and fastest plan forward for the Company. We reserve the right to utilize the requisition rights if such matters are not included as part of the AGM. We encourage each director to review the requisition and to ensure that all such matters are included in the AGM.
The payment of the lawyers and auditors and the extension by the NYSE was the direct result of all shareholders’ collective actions and pressure to force the Board into action. Now, we must follow through with more direct methods of continuing to help the Company and the Board accomplishes what is necessary for the Company to survive and ultimately recover. The founding members of LKMforward will continue to devote as many gratis hours as necessary until LKM is the company we all believe it can be.
Please join in our efforts and contribute your share to the cause! We look forward to the AGM announcement and accompanying shareholder voting items and materials to be processed through the trust depository and brokerages.
We are all interested in one common and shared goal – LKM’s survival and recovery and ultimately for the value to be restored for all.
Clarifying Comment from Company:
The Company sent LKMForward an email with some clarifying comments regarding the NYSE extension. The Company had received verbal communication, but was still awaiting the formal written extension, which is expected in the next 24 hours.