So from a cursory reading of this board one might have assumed that on Thursday ADXS cured anal cancer but then on Friday, OMG they are dropping 30M shares on us at $3 or lower.
My position…
I fully support the share authorization. I get the bitterness over the PPS, but if you are against this then you are either willing to cut your nose off to spite your face or you might have zero understanding of how pre-revenue biotechs operate. This is par for the course. The company has a fiduciary responsibility to be in position to maintain itself as a going concern. This is also strategic in that it most definitely does help them in negotiations with other companies who might be trying to get them to bite on lowball offers.
Here is a statement that might upset some. I might actually prefer dilution offering shares versus "Interim CEO" Lombardo selling off pieces of the company. I’d rather raise $60M dollars selling 20M shares at $3 than raise $60M dollars selling off the prime rights to HOT, AXAL, and HER2.
Here's why.
ADXS is very close to submitting for EU approval. That will start the clock ticking. In addition, as with canine and anal results, along with prostrate later this year, ADXS appears to be inching closer towards enough proof that their platform works, increases a patient’s chance for survival, and is SAFE (as Hovacare explained so well). So I am not sure this is the time to sell off the technology for dimes on the dollar just to avoid a dilutive offering.
Notice in the paragraph above I didn't say definite proof...I said ENOUGH proof. There is a threshold of proof a biotech can reach BEFORE commercialization and revenue that provides enough evidence to Big Pharmas that they have a valuable platform and products and are worth the gamble of a sizeable investment. ADXS appears to be very close to that threshold.
On the other side of the coin…
The entire BOD deserves to be replaced. All of them. They have been on the job for about a decade or more. Their handling of the DOC situation alone makes them worthy of replacement. They decided to allow him to gain ownership of almost 5% of the company…BEFORE his leadership or strategy proved to be successful…and then fired him with no real succession plan in place. So yeah, IMO at this point they have all proven they deserve to be replaced.
I will vote YES on the share authorization but NO for every single BOD member.
And for all the breathless drama over the last 72 hours…ADXS PPS ended the day at $2.95. For those keeping track…
11/15/17 - Closed at $2.98
11/30/17 - Closed at $2.99
12/14/17 - Closed at $3.05
12/29/17 - Closed at $2.84
01/16/18 - Closed at $2.92
01/22/18 - Closed at $3.01
01/23/18 - Closed at $3.06
01/24/18 - Closed at $3.03
01/25/18 - Closed at $3.18
01/26/18 - Closed at $2.95
For anyone who sincerely believes the above is just the natural laws of supply and demand at work, I have some bridges in the desert for sale. I am promising you a 1000% return on your investment if you buy one from me.
