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Well did they get enough shares for the RS or not?
Did they say whether they had enough votes for the RS?
i) to stay listed on the Nasdaq GM or Nasdaq CM; and ii) to produce a result that is considered mainstream for a company of GTC’s ilk. Few biotech companies have as few as 10M shares outstanding, but many have 20-25M.
I still don't think its certain it will pass (though considering the insider holdings I suppose its a better possibility then I thought till now) but the only real reason I can think of for a RS is a private placement (listing isn't helping them, heavily regulated mutual funds can't touch these microcaps anyway while Hedge Funds and Private Equities can buy anything listed or not), the 2nd reason you listed Dew seems particulary weak. If the company does enact a reverse split this will show GTC's commitment to never let good news come without it being immediately followed by bad (and if they do it, I will go immediately back to my view that Cox should be fired along with the rest of the management except for Meade, this following good news immediately with bad is what has kept the stock down).
Anyone making their last minute decision on this before the meeting should not vote for the RS.
I suspect the R/S will pass. Why? Because the company contacted me last year regarding some vote (which one I can't recall exactly but I voted against it and it passed). I received no call this year and I have over 450k shares so I suspect they don't need any more votes to pass the R/S.
Im in the Middle of a poker game with Jimmy Hoffa, DB Cooper, and Elvis.
For those who have not voted for the RS yet, I think it makes sense to vote for it at this point...
Not if you own the shares to vote for it it doesn't (if you want to get in even cheaper then by all means tell others who own the stock to vote for the RS).
Listing hasn't done the company any good, stop trying to sell this b******... the reason the company hasn't gone up more is people are worried about the RS going through tommorow.
No on the RS.
I agree that I think it will pass...
I also think it's already built into the price. While rarely would I support a RS, I think this may be a unique event. In the majority of cases, a RS is done by companies that have very little going for them.
Most of these people here who say they are for it probably have some kind of ulterior motive...
If you are long a stock you have to be INSANE to vote for a RS, they are bad without exception.
If the RS is rejected (which it probably will be) the price will head up after this deal... escaping 2008 without needing more money solves most (though Im still miffed at the management for taking this long) of the companies problems as they are due milestone payments from Merrimack upon completion of the DIC trials (correct me if Im wrond Dew).
Although the fit between the companies looks good, the scant $5M in deal payments that GTC expects in 2008 is disappointing, IMO.
If it gives them enough to limp to the milestone payments they are due from Merrimack on DIC then the deal is fine... they only need just enough to limp into profitability. What did GTC give up in the deal?
My sense is that this board currently has a lot of negative voting small share holders and that yes votes will carry by a large margin when the results are announced on tuesday.
Institutions only hold 16% of the stock, I can't believe that more then 1/3 of longs (johnbits and doofus are shorts... im just a long who hates Cox and sees him as an obstacle to what should be a hundred bagger) would vote for a reverse split.
Reverse split allows them to begin finance via dilution again (an option which I don't want this management to have, and may even cause some of the institutionals to not vote for it) and the price will most likely head down afterwords too, the market likes regular splits and hates reverse splits.
I anticipate and hope for rejection.
I would imagine at least 2/3rds of the individual investors who voted were sensible enough to vote against the reverse split (I wish I could say the same about voting against the board of directors), and not voting counts as a no vote.
I don't think it will be approved.
I do not know if Genzyme interceded with the EMEA or not, although I doubt it, but I do know that your facts are not straight either.
The EMEA excluded some childbirth patients in the European trial because GTC changed the protocol (from what was agreed to) during the trial.
Yes in a way the EMEA asked them to.
This time I think it ISN'T an imminent dilution, Cox is really risking his job if he does that before the shareholder meeting.
If they get it wonderful.
If they don't get it the RS will probably still be rejected and Cox will most likely be fired (followed by an austerity program... and because Atryn looks like such a blockbuster drug they don't really need their other stuff).
More upside then downside short term.
The nightmare sequence is the RS gets approved, followed by the massive dilution (with no partnership), and Cox staying on. But I consider that rather unlikely.
I am now once again leaning to voting for allowing the RS...
Well did you dump the stock yesterday? Thats the only good reason to be for it.
They aren't reducing the number of authorized shares, red flag. Don't vote for it.
The same monstrously inefficient, corrupt, bureaucratic etc. EMEA/FDA we all know and love will protect GTCB from any competition in the Atryn market.
They are not decreasing the number of authorized shares with the RS, that means massive painful dilution if its implemented. Don't do it, if Cox doesn't pull a miracle at least force an austerity program by giving them a dilution limit.
The trading range high of .63 had a trading range low of .56-.57. The drop after that occured with the RS proxy statement and the annoucement the initial deal had fallen through.
I am really tempted to vote against management in all matters relating to the proxy, including the RS request.
Why would you vote FOR the RS? It just allows them a massive dilution and further feeds negativity.
As far as voting for the Reverse Stock split, I am currently on the fence and could argue both ways...
But only one arguement is good.
On the one hand, it is good to give management the flexibility
I'm against giving the (mis)management ANY flexibility in terms of financing, their MO is well established. If worse comes to worse and they can't dilute anymore then LEO and LFB have to pay rather then letting them go under completely (in which case we'll get bought for at least a dollar by one of them... worst case). Delisting will also keep a lot of their potential dilution partners away, im sure a lot of private equity groups don't do pink sheets.
But really what the rejection will do is force an austerity program, and hopefully Cox will be fired.
they wont go BK due to LFB
Another very good reason to vote against the RS, eventually LFB and LEO get stuck paying the freight instead of us when they aren't authorized to issue any more shares.
Management changes are a complicated issue
What here is so complicated about it? I suppose you could theoretically get a worse management team especially given that the board is unlikely to get voted out(are Nick Leeds, Jeff Skilling, and James Cayne looking for work as this board is impressed by their credentials) but its very unlikely.
Also management have a greater incentive to sell their shares once they have left the company.
Best buying dip to buy on ever then.
Cox and mgt have established ties with potential partners
Heh heh heh that old song and dance. Hes got a great deal on the Brooklyn Bridge and some wood from the true cross as well.
with GENZ, if they left all that would have to start over.
Since a real possibility exist hes a Hudsucker Proxy agent for GENZ you've just given another good reason why him and the gang should go.
You might consider that no matter what management GTC has, the course of their stock would have remained the same. Surely Cox would rather have GTC be a big winner; he can only get the deals that others are willing to offer.
There is very little evidence he gives a s***.
But in a practical sense, entrenched management is virtually impossible to remove, the typical response to bad management is to sell the stock and move on to a company where you like the management. Everyone complains about mgt when a stock is at an all time low, they never seem to question why they themselves own a stock at an all time low. I guess if you blame mgt you don't have to blame yourself.
Atryn's potential revenues are huge with DIC & possibly stroke/heart attack which makes this a bargain IF Cox and gang are removed.
Even companies with no chances of success will eventually double and triple in price at some price point
If they announce the firing of Cox I wouldn't be surprised if it opens at double the price the next trading day.
Ive turned bullish for one reason only, I expect the reverse split to be rejected followed by a purge of most of the management (which is the root of the problem) and the price is low enough. They'll be some small dilution after that followed by an austerity program...
"New management would most likely cause a more rapid decline"
I cannot see how any reasonable person can not see what must be done here. Cox clearly has no business plan beyond diluting the stockholders (which is why even from an equity perspective the reverse split should be rejected) and will not implement the austerity measures (IMO putting everything but Atryn in stasis for now) needed to save the company. All the while him and the rest of useless management staff account for 10% of the burn rate. His PR's have also been generally been complete disasters since he doesn't follow through.
Hes chairman of the board (not CEO) of some other company called NABI which has declined steeply since he took over which gives further evidence the problem is mostly with Cox and his management team.
Err I meant to say it has tanked in the past 5 years. So right after Cox became chairman... poor record running things. Why is he still around? He'd fit right in with the people running our federal government the way he sets a budget... and is so generous with other people's money.
There is an eventual limit if the reverse split is rejected (which is why it WILL have an effect on equity), I'd also like to see the board voted out and Cox, Green, Woloshen, Newberry, Liposky all fired (as to the question of who takes their place, they aren't likely to be worse) but that probably won't happen.
Oh and when did Cox become chairman of the board of NABI, hasn't dropped big in the last 5 years.
The business plan seems to be diluting the existing shareholders every time the company needs money rather then cutting funding on any of their existing programs, or god forbid cutting management compensation (like they are doing a good job and deserve it). There are possibly good reasons why they can't get a partnership (especially on favorable terms), there are none why they won't trim the burn rate. A painless way to trim it would be to get rid of the entire management except for Meade.
Rejection of the reverse split will soon have the effect of having the company live within its European Atryn HD revenue, which is what we need. Hopefully Cox will be removed too.