LETTER TO OUR SHAREHOLDERS

 

Date:  September 13, 2021

 

Dear Shareholders:

 

Every now and then I have been taking the time to communicate to you the vision for Puget as it is being implemented. Up until now, that vision has been primarily focused on laying the tracks for the train that leads to our future. The tracks have now been laid and the train is now ready to travel to many new destinations. We have a new CEO in place, Karen Fordham, who can steer this vision into its implementation stage. Her contacts in the healthcare industry are vast and run deep. Karen has a level of understanding of the details in this industry because she has been there and done that as a CEO of many different hospital systems. She has a deep understanding of the fragmentation in the healthcare industry and where the gaps are, and where to find opportunities for innovation; all part of the deep knowledge that is required to seamlessly integrate healthcare delivery systems. Her approach is to integrate behavioral health and traditional medical practices into one operation that provides synergies, cost savings, and better outcomes to the whole of healthcare. As we go about doing this, Puget will be considering acquisitions in both the traditional healthcare and behavioral health space as well as within Management Services Organizations which manage multiple physician practices and have relationships with the payors. We are looking at Direct Contracting Entities and a nationwide telehealth model for the delivery of these services as well. The other components of our vision including Puerto Rico and investments in other industries such as nanotechnology and proprietary applications are still on the horizon and will be addressed in the very near future.

 

We have received many inquiries from shareholders concerned about how our plans might impact their common stock holdings. However, any money that we may consider raising and any acquisitions currently in progress to implement our plans will be done for now through the issuance of Class B Preferred Shares, cash and/or a combination thereof, not by issuing more common stock. The Class B Preferred Shares have the following attributes: they have a preferred dividend equal to 20% of the net profits of the company which are cumulative; each preferred share has a 1,000 to 1 voting right and is also convertible into 10 shares of the common stock of the company. Under our currently proposed limited offering in reliance on Commission Rule 506(b), primarily to accredited investors, we are considering the issuance of 4,000,000 Class B Preferred shares for $20,000,000. Therefore, the maximum number of common shares that these shares could currently convert into would be 40,000,000. 

 

As a result, there has been no change since January of 2021 to the number of authorized and/or issued shares of Puget through today, a fact that will be reflected in our soon-to-be-filed 10Q. As of now, Puget can accommodate the issuance of Class B conversions within its current authorized Common Stock structure and does not yet intend to act on the approval given to us by you, our shareholders, at our last annual meeting to increase the authorized shares of Common Stock. We will be implementing the authorization to increase the amount of authorized Class B Preferred to accommodate our fundraising and acquisition-related activities but, for now, will leave the authorized Common Stock as is. 

 

Once again, the vision is taking shape. A lot of things are happening behind the scenes that you will become aware of as we roll things out. Our CEO is extremely busy negotiating potential transactions for Puget. New personnel are being considered to fill in key positions on the Board and the management team. Things are now revving up. The train is on the track and the engine is running. All systems are go, and I am now a fellow passenger on the way to Puget’s future. Welcome aboard!!!

 

Very truly yours,

Hermann

 

Hermann Burckhardt

Chairman of the Board of Directors