I'd much rather see the company gain the authority to add a quarter billion new shares than to be able to dilute to 4 times the number after a 1 of 4 reverse split. Share price almost always comes down after a reverse split. I can wait for the Nasdaq, but I think current shareholders would be poorly served by maintaining the authorized shares at a billion or more, someone said it's actually 1.25 billion, but cut the outstanding shares to under a quarter billion.
A compromise that could be acceptable would be the 1 for 4, but reducing the authorized share to a half billion or less without an investors vote permitting more. I fully believe in giving management some flexibility, but not so much that investors today own a tiny percentage of the company in a matter of a few years.
I've see companies use 1 for 100 shares multiple times, many here seem to follow CVM, it's one that's done that, and they keep going on the very same drug I learned about decades ago. I still have hope for PSTI which did a 1 for 10 to stay on the Nasdaq with a substantial degree of safety, but while I believe in the company, I think the price would be higher had they not done it, though they'd be on the OTC.
By the end of next year I expect that NWBO will have gained approval of DCVax-L, without a reverse split I believe we'll be above $4 and on the Nasdaq, that should serve investors well. The price could come much quicker with a partnership, and the partner may want an equity position, a good reason to authorize some more shares.
With drug approval I believe we'll be highly successful regardless of whether we do a R/S or not. I just don't see the need to rush getting on the Nasdaq. Few R/S's work as well as people think, in practically every case I've seen the share price will drop substantially both on the announcement of the intent to do one, then even more when it happens.
I would expect the prospectus for the Annual Meeting any day, should a R/S be on the agenda, it will probably be far greater than a 1 for 4 as to get on the Nasdaq with today's prices you'd need about a 1 for 15 if the share price didn't fall after it's announcement. Most likely, they'd propose 1 for 20 or 25 if being on the Nasdaq was the reason. I would hope investors rejected any such proposal.
If the company waited for a $1 to $2 share price, then called a special meeting to do a small R/S to reach the Nasdaq, while I wouldn't like it, I would go along. I can't tell you how many companies I've seen where multiple reverse splits were done. In some cases people who originally held 10,000 or even 100,000 shares now hold 1 share, and it's practically worthless. It's simply not the right way of building a company and even a small R/S is a step in the wrong direction.
Gary
