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January 23, 2008

ViryaNet Shareholders Revolt

By Matthew L. Brown
A group of Southborough-based ViryaNet Inc. 's shareholders want to terminate the company's executive chairman and do away with the chairman of the board position, and they want it done at the company's annual meeting.

The meeting is scheduled for Jan. 31, but the group is pushing for the postponement of that meeting so changes to the company's proxy statement can be made.

In a press release, the shareholders claim that company executive chaiman Samuel HaCohen "continues to enjoy a high salary and reimbursements of $500,000" even though they claim the company "cannot afford it."

The shareholders claim ViryaNet has lost 99 percent of its market value since its IPO six years ago by "burning through all the cash raised and destroying almost all shareholder value."

The group wants a disclosure of the number of common shares owned by HaCohen and other executives as well as the disclosure of the identities of investors, and the price they paid for the about 18 percent of the company's outstanding shares they own.

The group would also nominate "three independent and external members" to the company's board of directors. The company reported a $1.9 million loss in fiscal year 2006 on revenue of $13.9 million, according to Google Finance.

Viryanet sells workforce management software.

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