As shareholders in Link Motion we are very concerned about the (past and future) direction of the Company under current management and the current Board of Directors. While we are confident in the Company’s prospects and potential for growth, we are gravely concerned by recent developments and the execution of the strategic direction of the Company and other value detracting actions the current Board has undertaken.
Our primary concerns are as follows:
1. The continued failure to file this year’s 20-F long past its due date.
2. The continued deterioration of the Company’s share price due to its inaction.
3. The likelihood the company may face delisting for the NYSE if the 20-F is not promptly filed and other steps are not promptly taken to comply with continued listing rules and regulations of the NYSE.
4. The conflicts of Dr. Vincent Shi, current Co-Chairman of the company, which compromise his ability to act on behalf of all shareholders. Specifically, Mr. Shi’s conflicts stemming from unresolved disputes with other shareholders of RPL Holdings, the Company’s original controlling shareholder.
Shareholders have exercised extraordinary patience in allowing the company and its Board of Directors to rectify the above matters on their own initiative. We have been met by silence, inaction and no plan to resolve the 20-F filing, restore regulatory compliance and align share price with the considerable asset value of this company. As such, we are left with no choice but to pursue dramatic and prompt action to save the company and step into the void left by the Board’s inaction.
Fortunately, the company’s own Articles of Association provides a remedy for shareholders that specifically addresses this situation. The Articles allow shareholders to requisition an extraordinary meeting of shareholders to rectify this matter. On request of shareholders holding in aggregate at least one-third of the voting share capital, we can accomplish much needed change that is necessary to save the company. Specifically, we can nominate an entire new slate of directors that will be aligned with all shareholders’ interest, resolve regulatory issues and get back to LKM’s promising businesses in ride share and Car Brain technology. Resolution of these issues will also open the door for the long awaited share buyback of the Company’s devalued stock in relation to net assets and future prospects.
We believe that with shareholder cooperation on meeting requisite voting thresholds and the dogged pursuant of our collective goals, the return of the company to all its shareholders can be accomplished. We are shareholders like you that our frustrated by the company’s continued inaction in the face of daily market value deterioration. We believe there is a much better path for the company if reforms can occur promptly and in full. We thank you for your support.