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1)
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The
proxy group has not been defeated. The “ex parte” hearing only
postponed the opportunity to present our case before the federal
court. We intend to present the facts and the inequitable
actions of the present management of Artes Medical before the appropriate
court.
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2)
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Artes
Medical refused to allow our proxy to be included in the annual meeting
thereby disenfranchising all shareholders who did not agree with
management and then accused us of refusing to participate in the Annual
Meeting. This is a ridiculous statement, asking that the
disenfranchised voters cut their own throats by attending and having their
presence be used against them while their votes are not
counted.
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3)
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It
is our intent to give more rights to the shareholders and change onerous
bylaws that take away shareholder rights with bylaws that respect and give
voice to each shareholder.
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4)
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It
is not our intent to “steal” the Company, but rather to turn it around
from the inept and disastrous actions of the current
management. We are more than willing to meet with current
management and the board of directors at any time to discuss our plans and
enable operations to continue
unabated.
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5)
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It
is our intent to properly launch and build the ArteFill® brand based on
abundant scientific evidence supporting its safety and efficacy and we
have spent considerable thought and discussion to prepare a clear and
comprehensive marketing plan and execution strategy including heavy DTC
marketing that we are prepared to present to the board at its next meeting
scheduled for Wednesday, November 5,
2008.
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6)
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We
have identified a highly qualified candidate to fill the key position of
Executive Vice President- Sales and Marketing, namely Vince
Colonna. Vince Colonna’s credentials are impressive – a 30-year
veteran in the U.S. product and personal aesthetics industry where he has
successfully executed corporate re-organizations for many well-known
consumer goods companies including Procter & Gamble, Vidal Sassoon and
REVLON, INC.
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7)
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We
have identified a highly qualified CFO candidate in Bill
Kachioff.
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8)
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We
will heavily focus on expense management to significantly reduce the
Company’s operating costs.
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9)
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Recognizing
the need for a capital infusion, we have financing proposals of a minimum
of $30 million including a bridge financing that would also be offered to
all shareholders,
not a select few, on a “first right of refusal” basis. We are
prepared to present this financing proposal to the board at the next
meeting.
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10)
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A
new independent re-structured board would be established that would
represent the diverse interest of the various parties, including three new
representatives to be picked by the current board (NGN Capital and Cowen
Healthcare Royalty Partners will retain their right to one seat each) and
two candidates selected by the proxy group to replace Mr. Christopher
Reinhard, the current Executive Chairman, and Mr. John R.
Costantino.
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11)
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The
proxy group’s marketing plan includes a strong focus on hands-on
peer-to-peer injection training of ArteFill® as well as the establishment
of ArteFill® Centers of Excellence across the country in addition to a
focused effort on direct-to-consumer marketing. It also includes the
re-engagement of crucial physician key opinion leaders who are members of
the Artes Medical Scientific Advisory
Board.
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12)
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At
the same time, the proxy group will advance the development of new and
exciting pipeline indications such as GERD (Heartburn) and Spinal Disk
Repair.
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