Powertech executive accuses opponents of spreading inaccurate information
Canadian complains that Coloradans are "not playing fairly"
Posted February 9, 2008, Updated May 16, 2008
This letter from Greg Burnett, Powertech's Vice President of Administration, was recently found on wallstreet-online.de, a German website for investors:
my apologies for the delays in returning your message, but I have been extremely busy with many deadlines.
We at the company share your concern about the negative development of the stock price over the past few months. We have been hit by a number of factors all at the same time which has put downward pressure on the stock price. Firstly, the overall concern about the global economy and a US recession and its effects worldwide. Secondly, the sub prime mortgage crisis in the United States has put a squeeze on liquidity and credit which has strongly influenced the stock market. Thirdly, the price of uranium has decreased and the uranium sector stocks in general have corrected quite strongly. Finally, specific to our company, our opposition in Colorado to the Centennial project have been very vocal and have not been playing fairly in that that have distributed much misleading and flat out inaccurate information about the project internationally. This has created much uncertainty amongst our shareholders and potential investors about the future of the Centennial project and has caused significant additional selling pressure on our stock. (emphasis added by webmaster)
While I certainly can in no way predict the future with respect to the development of the stock price, it is our belief that the market has deeply discounted the value of Centennial and we can not see much more downside. Our stock price based upon our fundamentals compared to our peers is very cheap, and sooner or later, we are confident that this will correct. Despite all of the negative publicity the company is absolutely on schedule with respect to filing all of its permit applications for both Dewey Burdock and Centennial by the end of 2008. These projects are proving to be two of the best ISR uranium projects in the United States that are under development and we are very confident that we will get both projects to production. As we proceed with our business plan and achieve milestones towards production, we have little doubt that the value will be recognized in the stock price.
I am obligated by our Disclosure Policy to advise you that I am making forward looking statements in this message and I urge you to review all of the risk factors inherent in our business plan that are disclosed in our Annual and Quarterly Reports as filed on HYPERLINK http://www.sedar.com.
I sincerely thank you for your support and believe that your loyalty will be rewarded. Powertech is among only a few strong junior uranium companies that we believe will get to production and become a long term player in the sector. In closing, I am attaching a recent update report from one of the independent analysts that are covering our stock. Hopefully, this report will also help ease your concerns.
My response to Mr. Burnett:
If you believe there is inaccurate information on this website, please identify specific inaccurate statements and provide credible supporting evidence. If I have made a false statement, I will promptly remove it. If you can demonstrate a statement made by another party is false, I will either remove the entire document, or I will explain that the statement is false and I will provide the correct, accurate information including the related source document. My email address is email@example.com.
From Powertech's website:
From Powertech's February 19, 2007 Management Discussion and Analysis report:
Mr. Burnett has 18 years of diversified business experience in corporate
finance and administration. Since 1989,
he has been President and principal shareholder of Carob Management Ltd., a private management consulting
company based in Vancouver, British Columbia specializing in the provision of due diligence services,
development of business plans, and structuring / financing / management of venture capital projects, primarily
in the public market arena. Mr. Burnett presently serves on the board of directors and is a consultant to the
following public companies: Garibaldi Resources Corp., a junior gold exploration company focusing on projects
in Mexico, and Marifil Mines Limited, a junior metals exploration company focused in Argentina. Mr. Burnett is
also a principal shareholder and consultant of Zena Capital Corp., a public industrial minerals company involved
in the exploration, production, and sale of barite in British Columbia to the oil services industry. Mr. Burnett
holds a Master of Business Administration degree (1986) and a Bachelor of Applied Sciences degree in Civil
Engineering (1984) from the University of British Columbia.