Pinnacle Investment Partners, L.P. and Essex & York, Inc. Announced Today That They Are Formally Requesting a Meeting with The Management of Stratus Services Group, Inc. And Its Board of Directors.NEW YORK New York, state, United States New York, Middle Atlantic state of the United States. It is bordered by Vermont, Massachusetts, Connecticut, and the Atlantic Ocean (E), New Jersey and Pennsylvania (S), Lakes Erie and Ontario and the Canadian province of -- Pinnacle Investment Partners, L.P., a private-equity hedge fund hedge fund, in finance, a highly speculative, largely unregulated investment device. Originating in the 1950s, the funds "hedge" by offsetting "short" positions (borrowing a security and then selling it at a higher price before repaying the lender) against "long" , is the largest holder of Stratus's (OTCBB OTCBB See OTC Bulletin Board (OTCBB). :SSVG) Series I preferred stock Stock shares that have preferential rights to dividends or to amounts distributable on liquidation, or to both, ahead of common shareholders. Preferred stock is given preference over common stock. Holders of preferred stock receive dividends at a fixed annual rate. and owns 9.9% of Stratus's common stock. Essex & York, Inc., an NASD NASD See: National Association of Securities Dealers NASD See National Association of Securities Dealers (NASD). member firm, was the underwriter of Stratus's recent secondary offering. Essex & York's clients currently own approximately 45% of Stratus's common stock. Pinnacle and Essex & York believe that together the two groups currently hold a majority of Stratus's voting power. Pinnacle and Essex & York stated that they are disappointed with Stratus's fundamental performance, as well as its current operational management structure. Since the company's secondary offering, which closed seven months ago, the company has failed to increase shareholder value, raise additional capital from new investors, or implement a concise direction for long term growth, while losing approximately 60% of its common stock market value. Over this same seven-month time frame the overall market has seen modest growth, as has the staffing market. "We believe that there is a fundamental disconnect between the company's CEO (1) (Chief Executive Officer) The highest individual in command of an organization. Typically the president of the company, the CEO reports to the Chairman of the Board. and its shareholders, and we seek an opportunity to aid the company by putting a plan in motion that will satisfy its shareholder base and increase shareholder value," stated Chris Janish, fund manager of Pinnacle. "We have been urging the company to work with Pinnacle on doing this, but to no avail." "We believe the company has not lived up to its projections, and hence is not reaching its full potential. This is a final effort in order to reach an amicable solution," added Mr. Janish. Joe Barile, Essex & York's CEO, stated, "We are disappointed with the performance of Stratus and by the events that have transpired since the due diligence meeting Due Diligence Meeting The process of careful investigation by an underwriter to ensure that all material information pertinent to a security issue has been disclosed to prospective investors. with Stratus prior to the secondary offering. We believe that since the secondary offering, the company has not been sensitive to its public shareholders' concerns." About Pinnacle: Pinnacle Investment Partners, L.P., is a private-equity hedge fund that primarily makes private investments in growth companies. About Essex: Essex and York, Inc. is a registered NASD Broker/Dealer specializing in retail brokerage and investment banking. |
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