Item 5.02 Departure of Certain Officers; Election of Directors; Appointment of Certain Officers; Compensation Arrangements of Certain Officers.
On October 15, 2010, Liu Zhongyi, the Chairman and Chief Executive Officer of Lotus Pharmaceuticals, Inc. (the “Company”) received an email from Ian Ashley (the “Resignation Notice”) pursuant to which Dr. Ashley resigned as a member of the Board, effective immediately. Dr. Ashley delivered his Resignation Notice following his receipt of an email from Dr. Zhongyi pursuant to which Dr. Zhongyi, following consultation with the Board and shareholders, suggested that Dr. Ashley resign from the Board. At the time of his resignation, Dr. Ashley did not serve on any committee of the Board of Directors.
In the Resignation Notice, Dr. Ashley claims, among other things, that the transparency, communication, and operations of the Company are in question. The Company strongly disagrees with the claims made by Dr. Ashley in the Resignation Notice.
Dr. Ashley’s Resignation Notice is being filed with this Current Report as Exhibit 99.1. The Company has provided Dr. Ashley a copy of this disclosure it is making in response to this Item 5.02 no later than the date of filing of this Current Report with the Securities and Exchange Commission (“SEC”). The Company will provide Dr. Ashley with the opportunity to furnish the Company as promptly as possible with a letter addressed to the Company stating whether he agrees with the statement made by the Company in response to this Item 5.02 and, if not, stating the respects in which he does not agree. The Company will file any letter received from Dr. Ashley with the SEC as an exhibit by amendment to this Current Report within two business days after receipt by the Company.
Item 9.01 Financial Statements and Exhibits.
Exhibit No. Description
99.1 Notice of Resignation by Ian Ashley, dated October 15, 2010
Pursuant to the requirements of the Securities Exchange Act of 1934, the registrant has duly caused this report to be signed on its behalf by the undersigned hereunto duly authorized.
LOTUS PHARMACEUTICALS, INC.
Date: October 19, 2010 By: /s/ Liu Zhongyi
Name: Liu Zhongyi
Title: Chairman and Chief Executive Officer
Dear Dr. Liu,
I have served as a Director since inception of LTUS. The transparency, communication, and operations of the public company are in question. I have made repeated requests for information that should be available to Directors. Most recently my request for a date of the next Board meeting has gone unanswered. Often you have sent me signature pages to sign off on without sending the supporting documents. Emails in both English and Chinese have gone unanswered. In light of this, please consider my resignation effective immediately. I respectfully demand that this resignation letter be included in the 8-k filing. I have copied this to your counsel.
Ian Ashley, MD
It seems that there were some major communication problems between Mr. Ashley and management. My opinion is they hired him to get more international attention, but never made him part of the team. To debate that something is completely wrong with the company is not opportune, but of course we need a good explanation.