What is most interesting to me about the S-3 is who filed it. Merrill M. Kraines is not only a Partner at Pepper Hamilton LLP, he's the Head of the Life Sciences, Technology and Emerging Growth practice areas in the New York office.
Many people may not be familiar with how corporate law firms operate, but, trust me, it's a big deal when the head of a 50+ lawyer practice group puts his stamp of approval on your SEC filing.
So, if you step back and think about it there are two possibilities here. Remember, Pepper Hamilton is (a) in the top 100 law firms in the US in terms of revenue, (b) one of the oldest law firms in the US, (c) has argued cases in front of the US Supreme Court, and (d) merged with the NJ law firm, Jamieson Moore, that traditionally represented Janssen.
The first possibility is $PMCB approached Pepper Hamilton and asked it to file the S-3. That's perfectly plausible and it means Pepper Hamilton has done their due diligence (in the truest sense of the term!) on PharmaCyte and agreed to take them on as a new client. Shareholders should take this engagement as a vote of confidence, as law firms of this caliber have ethical and liability standards that far, far outweigh the need to earn $25K in fees.
The second possibility is that another client of Pepper Hamilton has asked it to file the S-3 for $PMCB so that the other client's interests are protected. That may seem odd, but it's typical when one company is so much more powerful (for lack of a better term) than the second, smaller company. (Imagine you are the head of a $50 Billion dollar company and you are looking to work with a $50 Million dollar company. You are naturally going to have your accountants and your attorneys size up the company, you will not be relying on the smaller firm's usual accountants and lawyers.)
Generally speaking when you're doing DD, if you see a company suddenly switch accounting firms and/or law firms it could mean something is going on, especially when the company goes from having a small, local firm to a nationally-recognized firm.
Know What You Own. My posts should not be construed as investment advice.
