Humanigen Inc (HGENQ)

[LongTkt]

Outstanding shares issue bugs me

Company currently does not have sufficient authorized but unissued shares of common stock available for future issuance in respect of currently outstanding stock options and warrants.

With 210M shares currently outstanding and a previous cap of 250M authorized shares; HGEN had encumbered more than 41M unissued shares as stock options and warrants.

The Board believes that the availability of additional authorized shares of common stock will provide the Company with necessary flexibility to issue common stock for a variety of general corporate purposes as the Board may determine to be in the best interest of the Company and its stockholders including, without limitation, future issuances in connection with financing activities, investment opportunities, licensing agreements, acquisitions or other issuances

Increase of authorized shares from 250M to 750M is VERY excessive. This type of thing gets OTC companies into trouble. NASDAQ uplisting alone doesn't solve the mentality of limitless free shareholder money.

At $5/share; that's an increase of $2.6B of future unissued shares assuming the share price wouldn't decrease with dillution. I definitely don't like that amount of potential dilution.

HGEN had 15M outstanding and 85M authorized shares just 12 months ago. source Increasing from 15M to more than 250M outstanding shares in a year seems like a lot. At $0.40/share from 6 months ago x 209M shares ($84M) PLUS $72M from June equity financing (back of envelope calc 26M shares at $2.83/share). Totals $156M equity financing in the past 12 months.

They didn't have a shareholder vote on the share # increase because the company is tightly controlled. It's a blank check with no expiration. I'd hate to wake up to hear HGEN issued 200M shares overnight to fund some new R&D or complete an acquisition.

It's just sinking in now for me. The only number I really have trouble with is 750M authorized shares. Even if they're unissued.

I'm sure I wont think twice about this post in mid-September when the stock price shoots past $50/share.