NEW YORK--(BUSINESS WIRE)--John Glenn Grau, the spokesman for a group known as “Concerned Shareholders of Senomyx” (“CSS”), announced today that nomination letters for an alternative slate of company directors have been delivered to the incumbent Board of Senomyx. The incumbent Board has been put on notice that shareholders will have a chance to choose between a board slate selected by the incumbents and an “Alternative Board slate.”
Additionally, CSS issued the following statement:
Shareholders will have the chance to carefully evaluate all aspects of the Alternative Board Slate and decide if it deserves to be elected to a one-year term. All the facts about the alternative board slate will be included in a proxy statement mailed out by the alternative board slate. No shareholder should make up his or her mind until he or she carefully reads the proxy mailed out by the incumbents and also carefully reads the proxy mailed out by the alternative board slate.
The alternative Board Slate includes experienced public company board directors who have successfully turned around a number of other publicly-traded companies. While no two companies are identical, we believe shareholders of Senomyx should look favorably upon directors who have a proven track record of taking other companies from massive losses to profitability. If a director was able to take another publicly traded company from losses to profits, that person may well be able to do the same for Senomyx.
We believe that the talented and hard-working employees of Senomyx are the backbone of the company. We like and respect the employees of Senomyx and think they are doing a great job. Our only disagreement is with the incumbent board of directors.
We urge each loyal long-term shareholder to evaluate the stock price performance that the incumbent board has delivered. We believe that in doing so, some of them may reach the conclusion that now is the time to vote for one or more of the people listed on the Alternative Board slate. We believe that a low stock price is tremendously demoralizing to the company’s loyal and hard-working employees. We believe Senomyx will not be able to retain its best employees unless a high-quality board that gets the company to profitability and gets the stock price up is elected in the near future.
If the incumbent board takes any action such as staggering the board, delaying the shareholder vote or implementing golden parachutes, we believe the Delaware courts may conclude that the incumbent board has put their own selfish interests ahead of the interests of all shareholders. In such an instance, the Delaware courts may conclude that the incumbent board has acted out of a desire to enrich themselves rather than a desire to help shareholders. Such actions by the incumbent board may constitute gross violations of its duty of care and fiduciary duty to shareholders. There is legal precedent for incumbent directors being stripped of their directors and officers liability insurance (D&O) coverage. Some incumbent directors at other companies who have been proven to have committed gross violations have had their D&O insurance stripped away and had to use their personal savings to defend against shareholder lawsuits. In some cases, the incumbent directors have lost such shareholder lawsuits and had to pay large cash judgments to shareholders out of their own personal savings.
We urge the incumbent Board Members to NOT commit gross violations of their duties. We urge the incumbent board to allow a free and fair election to proceed as scheduled. Any action taken by the incumbent board to hurt shareholders could have catastrophic personal financial consequences for the incumbent board members.
We invite Senomyx shareholders and other interested parties to visit our informational website at: www.concernedsenomyxshareholders.com/.
All inquiries related to “Concerned Shareholders of Senomyx” and the Alternative Board slate should be directed to John Glenn Grau, President of InvestorCom, who has extensive experience soliciting proxies in other competitive elections.