Knoxlube, after you spend enough time like me on Cytrx you begin to see the dots connect. The so called conspiracy theory of a greedy SK I understand now. I'm not saying this is how it happened but based on past information this is a likely scenario.
Early in 2016 they hired Oliver Ware a specialist in commercialization. But things changed that summer. STS trial results were out, they knew the results were inconclusive and released the result intentionally misleading people to believe the trial failed without disclosing that the FDA delay resulted in partial patients not being counted for. Share price dropped big. That's step number one hit the SP hard, goal accomplished.
Step number two, make a new offering at 70 cents with warrants at 70 cents basically locks the share price at that level as it can't run anywhere. If the trial results were truly bad, SK would have made an offering prior to the trial results while the stock was still few dollars not after. Make sense? Making an offering after the trial result release can be seen as intentional. But, SK was not done yet, in Nov last year, he did yet another direct offering and amended part of the warrants to 50 cents instead of 70 cents. This is sign number 2 SK is suppressing share price knowing the follow up results were positive. At this point there is probably talks of a deal. So they fired Oliver and awarded 180k to 1.25 million options at 0.43 to management team. Goal accomplished in awarding options at super low price, SK and team only need to pay 43 cent per share when they exercise those options.
Step number 3, as the positive builds earlier this April yet another offering to suppress the share price. They did not need a raise at that point in time. Then propose RS and 10 million options. This step didn't work as the proxy got voted down.
Otherwise, step 4 is to again award millions of options while keeping the low share price. When enough options are awarded, let a deal go through and cash in big. That's probably projected for 2018.
While no body can say this is what will happen, but a lot of trails are leading to this kind of conclusion. So the reason why SK wants to keep this low is simple, because he wouldn't need to pay much to exercise his options when the time comes to cash in. If this was still 3-4 dollars, he would not have been able to award the 0.43 options !!!
If this is what's going down, the end goal means the share price will sky rocket sooner or later while they knew the deal won't be finalized until after SCLC results. However I doubt this is worth 50$ a share because if that was the case, SK wouldn't need to worry about the SP at few dollars versus 50 cents unless he's just that greedy. Id proxy vote were to go through, I bet they would award options on SCLC results then let the deal go trough and cash in big.
This is the conspiracy theory based on speculations and my own opinion only.
AI
