If you follow Abattis Bioceuticals closely enough, you may have felt as if you were reading a suspense novel during the month of December and especially after Christmas of 2014.
Shortly after Abattis was able to successfully add to its legal victories over Herbal Analytics, Affirnor Growers, LLC, Nicholas Brusatore, et al (please see “Abattis Obtains Preliminary Injunction Against Defendants In King County, Washington State Court..”), Vertical Designs Ltd. (VDL) issued a notice that the license with Abattis had been officially terminated due to a breach of the agreement.
Abattis CEO Mike Withrow didn’t waste any time. The very next day, he issued a statement rejecting the termination notice, claiming that Abattis maintained possession of the license, and suggesting that further legal proceedings against VDL would likely ensue in the near future.
Most fascinating of all, Mike showed no intentions of holding back his true feelings. He openly criticized the VDL statement as an effort to “retaliate against Abattis and its shareholders” and further described those responsible for the announcement as “schemers.”
If you visit message boards and other internet media, you’ll find some Abattis (ATTBF) and Affinor (RSSFF) holders bickering back and forth over these issues, almost like a grudge match. Amid the banter, however, you’ll also find some very interesting discussions about Nick Brusatore of Affinor. Some specifically berate Brusatore for playing games and issuing “fluff PR’s” as backlash for Abattis’ victories.
I remain confident in Abattis Bioceuticals (ATTBF) and here’s why……
I’m not about to dive into any legal arguments or make conclusions about the future outcome of any legal battles. I’ll leave that to Abattis management and the courts, as it appears ATTBF already has the upper hand.
But I will say this. I don’t believe for a split second that Mike Withrow would have been so frank and presented such bold statements on December 31 (2014) about the suspected purpose behind VDL’s statement —unless— he was especially confident that it was true.
If there was merit to VDL’s claim, December 31st and the following days would most likely have been met with complete silence from Abattis. Mike isn’t the type to call specific attention to a situation while knowing it’s highly likely to blow up in his face a few months down the road.
This isn’t a football game. This is an investment.
I’m aware that any CEO can puff out his chest and gather praise and admiration from his stock holders for “looking tough.”
Bear in mind that there’s a right way and a wrong way to stand up for your company and demonstrate leadership. For example, if you want to see a perfect, recent example of a CEO leading the way to absolute disaster in the marijuana industry, I recommend you research Bill Chaaban of FITX and his arrogant communication style.
But rest assured that the goal here with Abattis and Mike’s statements isn’t simply to motivate investors to swing their pom-poms and cheer faster. Instead it’s a declaration that Mike understands shareholders’ frustration and he’s not going to tolerate competition and “schemers” that overstep their bounds. Mike clarified his stance while maintaining his professionalism.
I, for one, am very pleased with the way he handled this situation. It’s made me feel a lot more confident with Mike at the wheel, steering the Abattis ship.by