Press Release Source: Foundation Growth Investments LLC
Foundation Growth Demands eXegenics Directors Uphold Their Fiduciary Duties Friday August 8, 12:26 pm ET
CHICAGO, Aug. 8 /PRNewswire/ -- Foundation Growth Investments yesterday delivered the following letter to the board of eXegenics Inc. (Nasdaq: EXEG - News): Foundation Growth Investments LLC 225 West Washington Street, Suite 2320 Chicago, Illinois 60606
August 7, 2003
Board of Directors eXegenics Inc. 2110 Research Row Dallas, Texas 75235
The board of directors of eXegenics Inc. has ignored our attempt to negotiate a transaction with eXegenics and is actively interfering with our attempt to purchase the capital stock of eXegenics directly from its stockholders. Our offer to purchase the stock of eXegenics is financially superior to the offer by AVI BioPharma, Inc. The directors of eXegenics are violating their fiduciary duties to maximize the value of eXegenics for the benefit of the stockholders of eXegenics. The proposed transaction between eXegenics and AVI BioPharma inappropriately provides millions of dollars of benefits to the board and management of eXegenics -- in the form of, among other things, insurance and severance payments -- that Foundation Growth Investments believes should be preserved for the benefit of the stockholders of eXegenics. eXegenics may also be violating the SEC's tender offer rules by paying more to the officers of eXegenics than other stockholders in exchange for the officers' stock and support.
We demand that the board of eXegenics refrain from favoring AVI BioPharma's inferior offer. Specifically, we demand that eXegenics exempt Foundation Growth Investment's tender offer from triggering the terms of the stockholder rights plan and exempt Foundation Growth Investments from the application of the Delaware anti-takeover statute, in each case as the board has done with respect to AVI BioPharma. eXegenics' board is hiding behind the rights plan and Delaware law to further the personal interests of the directors and management of eXegenics and to protect a financially inferior offer.
We look forward to your immediate attention.
Very truly yours, Foundation Growth Investments LLC By: Foundation Growth Management LLC
By: /s/ Timothy Leonard Timothy Leonard
-------------------------------------------------------------------------------- Source: Foundation Growth Investments LLC
If Foundation loses, I would think they may have potential legal action against Goode and the Board of EXEG. IMO, there could also be exposure to AVII. Just another reason why AVII shareholders should be upset with Burger over this EXEG money-grab deal!!