Friday, April 19, 2019 4:39:07 PM
I received my proxy today. The following is why and how my vote differed from Board recommendations.
Proposal No. 1 – Election of Directors
Mr. Quay should not be both the CEO and Chairman of the Board. Unfortunately, it does not appear that shareholders have a say in this matter. The election of Mr. Quay and Mr. Weaver looks to be pretty much a done deal. However, I withheld my vote for Mr. Quay as a protest in that he has too much control over the Company.
I voted FOR Mr. Weaver and WITHHOLD on Mr. Quay
Proposal No. 3 – To Approve the 2019 Amendments to the Atossa Genetics Inc 2010 Stock Option and Incentive Plan and to Increase The Number of Shares Authorized for Issuance Under The Plan By 3,600,000
This is one of the most egregious requests I have ever seen by a public company and my vote here is a no-brainer. A 26% dilution to existing shareholders that is almost exclusively for the benefit of the CEO and CFO as a reward for what? Management’s performance since Atossa became a public company has been atrocious. On a split adjusted basis, the stock once traded at over $1,500/share:
Note at the IPO in 2012, Mr. Quay owned over 5,000,000 shares (37% post IPO). However, through two reverse splits (and probably some sales along the way), his beneficial share interest has dropped to 82,667. Would have been great for investor confidence if he bought 200,000 shares at $1.36 instead of taking 2.3M no-risk options.
Lastly, the wording of Proposal No. 3 is very deceptive for what it doesn’t say. View prior post here.
I voted AGAINST Proposal No. 3
Proposal No. 4 - Advisory Vote on Executive Compensation
While I agree with the stated philosophy of “tying compensation to increases in stockholder value,” the number of option shares granted to Mr. Quay (2,300,000) and Mr. Guse (800,000) is over the top. Fortunately shareholders can stop this by voting Against Proposal No. 3. A similar vote is required here to express shareholder dissatisfaction with the overall compensation package.
What is the right number of options? Given an exercise price of $1.36/share, I could support 230,000 shares for Mr. Quay and 80,000 shares for My Guse. If Atossa hits on its Oral Endoxifen, the Company could easily run to a $500M market cap. With 9,124,447 common shares outstanding as of the record date, that equals a per share price of $54.80. In other words, $12.3M for Mr. Quay (as opposed to $123M) and $4.3M for Mr. Guse (as opposed to $43M). Most CEO's of Fortune 500 companies don't earn $123M in stock compensation. $166M for the CEO/CFO of a micro cap, outrageous.
I voted AGAINST Proposal No. 4
Thanks for taking the time to read my post. Now go vote your Proxy.
Recent ATOS News
- Form S-3 - Registration statement under Securities Act of 1933 • Edgar (US Regulatory) • 05/13/2024 08:05:53 PM
- Form 10-Q - Quarterly report [Sections 13 or 15(d)] • Edgar (US Regulatory) • 05/13/2024 01:05:35 PM
- Form 8-K - Current report • Edgar (US Regulatory) • 05/13/2024 01:00:12 PM
- Atossa Therapeutics Announces First Quarter 2024 Financial Results and Provides Corporate Update • GlobeNewswire Inc. • 05/13/2024 12:50:00 PM
- Form ARS - Annual Report to Security Holders • Edgar (US Regulatory) • 05/10/2024 01:04:04 PM
- Form PRE 14A - Other preliminary proxy statements • Edgar (US Regulatory) • 05/10/2024 01:00:05 PM
- Atossa Therapeutics Announces Support of New Breast Cancer Screening Guidelines • GlobeNewswire Inc. • 05/07/2024 12:30:00 PM
- Atossa Therapeutics Announces Expanded Research Agreement with Weill Cornell Medicine to Further Evaluate Synergy Between Antibody Drug Conjugates (ADCs) and (Z)-Endoxifen • GlobeNewswire Inc. • 04/29/2024 12:30:00 PM
- Atossa Therapeutics and Quantum Leap Healthcare Announce I-SPY 2 Clinical Trial to Evaluate (Z)-Endoxifen in Combination with Abemaciclib (VERZENIO®) in Women with ER+/HER2- Breast Cancer • GlobeNewswire Inc. • 04/15/2024 12:30:00 PM
- Atossa to Participate in Noble Capital Markets Emerging Growth Healthcare Conference • GlobeNewswire Inc. • 04/11/2024 12:30:00 PM
- Atossa Therapeutics Presents Data from 40mg Cohort of Phase 2 EVANGELINE Clinical Trial Showing 100% Disease Control Rate After 24-Weeks of Treatment with (Z)-Endoxifen • GlobeNewswire Inc. • 04/09/2024 03:59:00 PM
- Atossa Therapeutics Announces Year-End 2023 Financial Results and Provides Corporate Update • GlobeNewswire Inc. • 04/01/2024 08:00:00 PM
- Atossa Therapeutics Provides Five-Year (Z)-Endoxifen Treatment Update on FDA-Approved "Expanded Access" Program for a U.S. Breast Cancer Patient • GlobeNewswire Inc. • 03/19/2024 12:30:00 PM
- Atossa Therapeutics Regains Compliance with Nasdaq Minimum Bid Price Listing Requirements • GlobeNewswire Inc. • 03/18/2024 12:30:00 PM
- Atossa Therapeutics Appoints Breast Cancer Specialist Tessa Cigler, M.D., M.P.H. to its Board of Directors • GlobeNewswire Inc. • 03/12/2024 12:30:00 PM
- Atossa Therapeutics Announces First Patient Dosing of (Z)-Endoxifen in the Ongoing RECAST DCIS Study • GlobeNewswire Inc. • 02/22/2024 01:30:00 PM
- Atossa Therapeutics Announces Full Enrollment of (Z)-Endoxifen Arm of I-SPY 2 Clinical Trial • GlobeNewswire Inc. • 02/07/2024 01:30:00 PM
- Atossa Therapeutics Issues Letter to Shareholders • GlobeNewswire Inc. • 01/09/2024 01:30:00 PM
- Atossa Therapeutics Announces the Appointment of Arezoo Mirad, M.D., as Senior Medical Director • GlobeNewswire Inc. • 12/04/2023 01:30:00 PM
- Atossa Therapeutics Announces Full Enrollment of Phase 2 Karisma-Endoxifen Clinical Trial • GlobeNewswire Inc. • 11/20/2023 01:30:00 PM
- Form 3 - Initial statement of beneficial ownership of securities • Edgar (US Regulatory) • 11/15/2023 09:15:00 PM
- Form 4 - Statement of changes in beneficial ownership of securities • Edgar (US Regulatory) • 11/15/2023 09:05:28 PM
- Form 10-Q - Quarterly report [Sections 13 or 15(d)] • Edgar (US Regulatory) • 11/13/2023 02:10:31 PM
- Form 8-K - Current report • Edgar (US Regulatory) • 11/13/2023 02:00:13 PM
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