Broadsign International’s Official Statement
This went up on Broadsign’s web site late Monday
Official statement by BroadSign International Re: Petters Group Worldwide
MINNETONKA, MN AND MONTREAL, CANADA, September 29th, 2008
We have been receiving inquiries regarding Petters Group Worldwide (PGW) and its involvement with BroadSign International. BroadSign wishes to clarify its relationship with Petters Group in the following statement.Petters Group Worldwide used to be one of the main shareholders in BroadSign USA, a sales and marketing company that was acquired by BroadSign International in March 2006. BroadSign International was formed in January 2006.
Since the creation of BroadSign International Petters Group Worldwide has not funded any of its activities. Petters Group Worldwide is a passive shareholder in BroadSign International, with a minority stake of less than 20 % which was further diluted recently by the addition of more active investors.
Petters Group Worldwide is not represented in the Board of Directors of Broadsign International.
BroadSign International is not a PGW company or a subsidiary of any PGW divisions.
The recent events at Petters Group Worldwide have had no affect on any aspect of BroadSign’s operations.
It’s obvious that they want to distance themselves from Petters and his business empire, who by the way resigned from his organisation yesterday. We don’t blame them for wanting to do that BUT BroadSign we feel need to be careful in trying to be too clever.
If you read the statement carefully they switch between talking about “BroadSign USA” and “BroadSign International” and then go on to say that ‘Broadsign International’ was formed in January 2006 as if that had any bearing on the percentage shareholding.
in July 2007 Petters was being touted as the primary shareholder – even going as far as giving a quote on the appointment of Engels; from the original press release…
“Rick Engels has a wealth of knowledge and experience in bringing success to a variety of companies ranging from small private start-ups to large public corporations and has been a valuable addition to the BroadSign team,” said Tom Petters, chairman and CEO of Petters Group Worldwide and primary shareholder of BroadSign.
Petters Group Worlwide may have no representation on one of the boards but remember that Engels was a Petters employee, some say that he was reportedly earning a USD 1 Million a year salary during his tenure…
“Engels came to BroadSign from Petters Group Worldwide, where he served as CFO and media/marketing portfolio manager. Prior to joining Petters Group, Engels was the CFO of Cannon Solutions in Europe and held a senior management position at Deluxe Corporation”
Engels joined Petters Group Worldwide in late 2005
Tuesday, November 15, 2005
Petters Group names new CFOPetters Group Worldwide has named Rick Engels as its new chief financial officer.
In his new position, Engels will oversee Petters Group’s portfolio companies and support new business development initiatives.
“Rick’s expertise in both large public and small start-up companies will help all of the entities of Petters Group Worldwide continue to grow in a managed yet prosperous way,” Chairman and CEO Tom Petters said.
October 1st, 2008 at 18:07 @796
The truth is vexed by time, when Broadsign simply failed to immediately and publicly deny all rumors and associations as false last week.
The Broadsign US headquarters is in the Petters corp office building. Broadsign’s customers are forced to deal with both Broadsign business units in Canada and the US.
The original investors in Montreal are probably pretty edgy and not happy to see snooping by FBI, IRS, USPS, SEC… even in the best of situations. Simply the implication of association during such an investigagiton can dry up the best of credit lines. Not the type of information one likes to include on a financial disclosure form.
Lets not forget that PR fiction within the digital signage industry is legendary. “Credibility is king.”
tk