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Yes. corp pointed this out. from proxy:
"Although the Reverse Split will not have any dilutive effect on our stockholders, the proportion of shares owned by our stockholders relative to the
number of shares authorized for issuance will decrease. As a result, the additional authorized shares of common stock will be available for issuance at such times
and for such purposes as the Board of Directors may deem advisable without further action by our stockholders, except as required by applicable laws and
regulations."
The authorized share will certainly not be adjusted proportionally. They have no obligation to do so. Not sure why sec or NASDAQ would care since no rule or law broken.
And using ATM funds, diluting shareholders of a early stage bio, to fund a low margin business like Avid is absurd.
Retail of course. Unless you believe it is "the family".
At some point it must be admitted that management has failed. That bavi has failed. There is no secret entity that wants bavi. Avid can easily be recreated so no one is trying to get that either. There is nothing proprietary there at all. They simply want the RS to stay on Nasdaq so they can raise more atm funding. They certainly have no other access to funding.
No what isn't? Are you saying pphm bod members do not make more than the AVERAGE fortune 500 company? They do! Are you really comparing pphm to the largest, most successful company in the world?
The bod comp is more than most Fortune 500 directors. The exec pay is that of a successful mid-large cap player. But the biggest takeaway from the rs announcement is clearly there is no good news on the short-term horizon. They had 6 months left to get over $1 and pphm calculus said no way that could happen. So forget any subgroup or other positive news from Sunset. Forget any active talks with partners. Forget any new big trials coming anytime soon etc. Thought they would do 8:1 but I guess they wanted to keep the original shareholders above $.01.
2 quarters to go
But what about facts, real things happening in pphm vs. speculation. I thought once the CA ended the floodgates were going to open. News would flow. Deals would be struck. Why is there no info at all from pphm. Nothing on Sunrise data. No trial updates at all. Have they even finished the NCCN design yet? For having such a highly paid, bloated staff, the productivity at pphm is abysmal.
Yes but a waiver does not protect from things like fraud perhaps gross negligence, In any event pphm would be sued and they could attempt to collect from csm if they lost.
They would sue PPHM. PPHM ran the trial and vetted/selected CSM. CSM was PPHM's sub and PPHM was responsible for the trial and the participants.
Yes at $.37 a decent bet for nice 30-40% gain. How is $.44 for buyout.
Yes but it is routine to have the RS and any adjustments or lack thereof on one vote. They are intertwined so it makes sense. All outstanding shares including the preferred will be adjusted. Likely neither the preferred nor the common will have authorized adjusted. They don't have to, so based on history, they won't.
So why the SEC and Nasdaq?Nothing illegal going on here. And to think that pphm will do anything other than what serves them best isto ignore history.
Poison Pills in a company like pphm exist to be sure that bod and execs can negotiate THEIR financial gains without being dumped by an acquirer. It forces the buyer to negotiate with them. The actual poison pill would be dissolved prior to the takeover after the "team" got their payout. But any acquisition, friendly or hostile, after the failed PIII, would be both unlikely and welcome.
The registered letters to complain pphm is planning to break no rule or law?
So I guess you understand now that nothing illegal is going on here wrt to authorized shares. Do you plan to reword your "letter"?
I understand they are depressed and would like to be cheered up at pphm. I am sure these letters with no basis in fact or law will amuse them. Best to send letters to the execs to arrive on Friday so they may enjoy over the weekend.
lol no laws needed? No rules violated? Zacks is just opinion and has never been tested? The letter writing campaign is to break new ground, set legal precedence? And how about these reverse splits that did not change authorized proportional with split. Some companies adjust proportionally, some adjust partially, some don't adjust at all, some adjust common authorized but not preferred authorized, some add authorized shares and then adjust proportionally.
LXRX
NETE
DSCO
CVO
OCLS
ACCI now Q
The list can go on and on. It is clearly up to the company and not an illegal activity.
And investors speculators know this so they stay out of the stock. That is the part of the RS equation that is being ignored. This decline leading up to the inevitable. Instead of writing letters to sec and nasdaq about things that are not illegal/rules violation (not reducing the outstanding) people should focus on how can pphm avoid the RS. Restructure, cut costs, partner, change leadership, change bod - these things have hope of bringing SP over $1. Based on pphm inaction though it would seem they are resigned to a RS and just want to continue to milk shareholders.
Why write letters to sec/nasdaq about not adjusting the authorized? There is nothing illegal nor unusual about that.
Maybe that is the letter that should be sent to SEC and Nasdaq since there is nothing illegal nor unusual about not adjusting the authorized sharecount during a RS
But it is a good thing. More shares to be "accumulated" by a potential suitor.
No law that says you must reduce the outstanding. Not reducing happens all the time with these type (slippery bod etc.) of companies. A RS is never a neutral event. It is another failure for mgmt.
8:1 makes original shares $.01 - fitting.
Any value it has is being eroded by mgmt. on a daily basis. It may draw very little money. I wouldn't expect a bidding war. It is not sell the APP it is STOP THE BLEEDING.
Don't need bankruptcy just sell off all non avid assets, patents, tax credits. Reduce company headcount, facilities to point where avid is 15% net profit. Shareholders win.
The company would have been much better off with a real bod, experienced exec and the partners they would have brought along. The time to market efficiencies would have likely made all the difference. MSK/NCCN are being paid - these are fine but hardly major achievements. Avid ...great they bought a mfg. company with ATM funds. Hardly the homerun you are looking for with this kind of capital. Any bp can build avid with pocket change and no impact to shareholder equity if they choose.