BKF Capital Group, Inc. (OTCQB:BKFG), the second largest shareholder of Qualstar Corporation, today that issued an open letter to the shareholders of Qualstar Corporation (NASDAQ:QBAK), in response to the Company’s release yesterday of an investor presentation. BKF urges shareholders not to be fooled by the investor presentation into believing that the Company is on the road to recovery under current CEO Lawrence Firestone and the directors that he has brought to the Board. BKF believes that, under the strategy of Mr. Firestone and his fellow directors, the Company will continue to burn cash, incur unreasonable and unnecessary expenses and suffer losses. The Board therefore needs to be replaced.
BKF is urging all shareholders to vote on the
proxy card to elect the directors nominated by BKF at the 2013 Annual Meeting of Shareholders of Qualstar that will be held on June 28, 2013.
Shareholders who have questions about the BKF solicitation, who require assistance in voting their shares, or who need additional copies of BKF’s Proxy Statement, are requested to contact our proxy advisors, AST Phoenix Advisors
Floor, Brooklyn, NY 11219. Call Toll Free: (877) 478-5038. Banks and Brokers Call Collect: (212) 493-3910.
The complete text of the letter to shareholders follows:
June 14. 2013
OPEN LETTER TO QUALSTAR SHAREHOLDERS:
DO NOT BE FOOLED BY THE COMPANY’S INVESTOR PRESENTATION
Dear Fellow Qualstar Shareholders:
We are BKF Capital Group, Inc., and we own 18.7% of the stock of Qualstar Corporation. We are running a proxy contest to elect our slate of directors at the Company’s 2013 Annual Meeting of Shareholders on June 28
- our Company is bleeding cash;
- our Company continues to lose sales;
- our Company continues to lose money;
- our stock price continues to go down; and
the directors nominated by management — who in total own 5,000 shares of the Company’s stock — have been leading us down a risky and costly path that we, as shareholders, cannot afford.