Think Entertainment Shareholder Action Group

wilfshorrocks writes "

Dear Shareholders

Following three years of disappointment and frustration, in regards to the way our company is being run, events have recently come to light that give me no alternative but to speak out in regard to the current state of affairs.

I make this statement as a major shareholder who still retains over 90,000,000 shares in a company I built from nothing and, under my guidance, was destined for great success.

I was unable to make any public statements until the claims Paula and I made against the company for Wrongful and Unfair Dismissal were resolved (which have been settled recently) and it is my personal opinion that we were removed tactically from Just Group in August 2001 in order for certain individuals to benefit from greed and subsequent personal gain.

It was a very difficult and personally devastating period for Paula and I which only due to our tenacity we have been able to recover from. The subsequent misguided and ineffective management of NSM/Think have been a constant twist of that knife.

I want you all to be aware that the team at Peak Entertainment have always been in the background trying to help the various ‘management’ to get shareholder value back but it has been almost impossible due to misguided politics, misrepresentation and extremely ineffective management.

The company could have restructured, relisted and made significant commercial progress with the £5,000,000 raised by GOS. What has transpired is simply down to the lack of an experienced, effective board, which has not made good decisions or run the day-to-day business effectively from the moment I and other key personnel were ousted from the company. They have proved impossible to work with throughout their tenure. Believe me it has not been for the want of trying on my part.

It should be known that Peak tabled a $10,000,000 bid in 2003 to bring NSM back to market via our US Public listing with a second phase listing on AIM planned for 2004. The board, led by Brian Downes, turned down our proposal insisting they had better alternatives on the table. This subsequently proved to be unfounded.

Lack of commercial judgement was overshadowed by a myopic focus on accountancy and protocol. This was epitomised by the board’s decision to waste over £1,000,000 restructuring the company to deliver tax losses of £20,000,000 in 2003/4. We strongly recommended to them that this would not benefit the business in the short term and on top of over £3,500,000 already wasted on advisors, lawyers and other unproductive schemes, this would result in dire consequences for the company.

Over a year after we made our bid and with hardly any business being generated from the day the company went into Administration and the assets of the business being, by then, virtually valueless, the management of the company then made the biggest exposure of its inability to manage by entering into the FourPoint deal. I, personally, met with Shukri in NY and completed due diligence on Four Point in a matter of days. I recommended to the board that the deal was not a good idea at this time and the priority should be to merge with a real company that was trading on a proper exchange that could deliver tangible intellectual properties that could be turned into cash, possibly merging with other companies down the line. The board ignored our advice and ultimately found themselves in a corner culminating with the acquisition of Four Point.

It has come as no surprise that the deal went pear-shaped in less than a week and what we are currently facing is a disastrous situation with dire consequences. SG is now desperate to recover his assets (quite rightly in my opinion as he has already offered to give his shareholding back on this bulletin board in exchange). It is obvious from what is transpiring now on the bulletin board and the major pending legal actions that Four Point and Think would not be a good mix going forward.

We recently met with Think to put together a rescue plan and we thought that for the first time we were being allowed to positively interface with the company.

The plan we put to the company was based on the following key areas;

1. Resolve the SG/ Four Point situation.
2. Re-negotiate the CVA.
3. Merge the company with parties who have given ‘in principle’ agreements to merge and who will add value in terms of IP and on-going day to day business.
4. Relist.

Once the merging companies are in place we would need to raise further finance to execute this transaction and take the company forward.

There really is no alternative in order to salvage our shareholdings in the company but we can make this happen and deliver a viable, strong trading entity if the current diabolical situation is resolved quickly.

I do not want to mislead anybody as the current position is dire and we may not have the time to actually change the outcome. The main issue is the board structure, it is compromised and there is not one single director in place who wants to be there. As such the company is rudderless and decisions are being made to safeguard individuals rather than save the company. We do not blame the individuals as we feel they did not expect to get involved in such a minefield and as none of them are shareholders they have no real emotional ties. It is our opinion that if the company is placed in the hands of a third party to administer the affairs of the company it will be doomed, or what transpires will not benefit long suffering shareholders and make the business impossible to resurrect.

We are frustrated that there is a serious lack of reality and ability in place and individuals who believe they have the company’s best interests at heart are causing more complications.

I will continue our endeavours to put proposals forward that may save the company until such times as there is no company left.

Wilf Shorrocks

Note: Copied from the ADVFN BB."