Proxy: Two Critical Investor Issues (Board Re-Election and 30 Million Share Authorization)
1) Board Re-Election: I am definitely voting no. I don't think there is much debate on whether the Board has fallen short in their oversight responsibilities, given they have overseen nearly 80% shareholder value destruction from the weighted average $12 price in which investors over the last four years have poured more than $200 million in new capital into the company. They rubber stamped all of O'Connor excessive non-performance based pay policies as well as his liberal unfocused spending on what amounted to little more than a spaggetti strategy (throw money left and right and see what sticks).
2) Additional 30 Million Shares Authorization: I am having a hard time deciding on which way to vote. On one hand, I see the argument that the company needs more financial flexibility in deal making, etc. But on the other hand, the company's track record is dismal and has shown that they are not good efficient steward's of investor capital. From this angle, I would almost rather see the company sold outright for say $10-$12 soon than continue to fund a bloated workforce with outsized perks and more of a focus on being the "best place to work in New Jersey" rather than a company focused on generating shareholder value. Another thing that makes me think it could be right to vote against the 30 additional shares authorized is that in the latest proxy document in the comp section, it describes how the company ran a consultant comp survey and determined its executive team was underpaid so they all got raises this year. Mind you, this is on the heels of a near 60% collapse of the stock last year and near 80% collapse from the $12 recap of the company the last four years. I can't comprehend why this was done and why no one on the Board or Lombardo didn't say, "hey guys, let's step back on this comp survey and salary increase because our investors have seen more than half the value of their investment evaporate in only a year's time - let's take one for the team, as now is not the time be be giving ourselves raises." Again, this is KEY - it shows how tone deaf to blatantly defiant Advaxis' current Board and management team is to the investors that pay their paycheck. So why should we give them another 30 million in blank check authorized shares?
Any thoughts are appreciated.
