Montana Advisors Writes Open Letter to Psychemedics

Business Wire - Tue Jun 1, 2021

Montana Advisors issues open letter to Psychemedics CEO (Nasdaq: PMD):

Dear Mr. Kubacki:

It was a pleasure speaking with you two months ago via Zoom. I appreciate the time you have given me to discuss Psychemedics Corp. (PMD or the “Company”). As you know, I continue to believe that PMD shares continue to trade at a significant discount to their intrinsic value. Montana has made recommendations on ways to unlock the value of the shares, including making your balance sheet work harder. We are under the belief that a large self-tender or outright sale of the Company makes the most sense. On our last call, my proposal to buyback stock at these discounted levels was met with hesitance. The hesitance leads me to the question, what are you going to increase shareholder value? PMD without dividends has lost roughly half of its value in the last 5 years. We find these returns unacceptable.

As you know, Montana is one of PMD’s largest shareholders and our position in the Company represents one of its largest investments. Montana has actively engaged with strategic buyers who have interest in PMD. Montana has a duty to its investors to protect its investment in PMD and we would like to assist you in maximizing shareholder value. I believe this could be best achieved through an outright sale of the Company, we stand ready to introduce you to buyers.

I would like to reiterate that we are ready and committed, long-term shareholders whose priority is to work with you in maximizing the value of PMD.

Respectfully,

Kunal Mehta

President

Montana Advisors LTD