Humanigen Inc (HGENQ)

[cowtown jay]

Skin in the game.

I'm a comparatively small shareholder. Retiring early to take care of my wife means that by now, I am living on a fixed retirement income, and I enjoy the challenge of supplementing that income with trading profits. I last banked some profit in December of last year, and I have put 70% of that profit bank into HGEN as we nose-dived into the $6 range. I really hoped that we would get a bounce, and I could return what I had previously banked, and then some. More than just the $8 or so I could have taken. But still, I have no interest in selling if we go back to the $8 range. I need to supplement my income, but even more I want to sell at a price truly reflective of what this company is worth. My single sell order for a small number of shares remains at what was a $6B market cap level. I decided not to lower my sell price, so for it to fill, after this increase in our OS, we need to get to a $6.5B market cap.

I may not feel the pain that most of you, with a lot more skin in the game, are feeling. But we're not alone in feeling that pain:


Item 5.02. Departure of Directors or Certain Officers; Election of Directors; Appointment of Certain Officers; Compensatory Arrangements of Certain Officers.

On September 30, 2021, the compensation committee of the board of directors of Humanigen, Inc. (the “Company”) offered the Company’s executive officers and employees the opportunity receive all or a portion of their base salaries for the fourth quarter of 2021 in the form of stock options, in an effort to conserve cash and to provide additional incentives for achievement of the Company’s near term objectives. The following executive officers elected to receive such stock options in lieu of such cash compensation for the fourth quarter of 2021:

Name and Principal Position Number of Shares Underlying Grant (#)(1)
4th Quarter Base Salary Paid in Stock

Options (percentage of quarterly amount)

Dr. Cameron Durrant
Chairman and Chief Executive Officer

17,660

$79,959 (50%)


Dr. Dale Chappell
Chief Scientific Officer

22,626

$102,433 (100%)


Dr. Adrian Kilcoyne
Chief Medical Officer

5,863

$26,646 (25%)


Edward Jordon
Chief Commercial Officer

4,966

$22485 (25%)


(1) All options granted have an exercise price equal to $5.93, the closing price of Humanigen’s common stock on the September 30, 2021 grant date, and vest in three ratable installments on each of October 31, 2021, November 30, 2021 and December 31, 2021.

https://www.sec.gov/ix?doc=/Archives/edgar/data/1293310/000121465921010230/m1032108k.htm

Our low yesterday was $5.92. At that price, those named above will have lost 25 - 100% of their quarterly income, if share price doesn't rebound before these options become exercisable. I don't know the expiration for these options. But clearly, these guys have skin in the game here.

In addition, stock options awarded to our newest board members, which won't start to be exercisable until March 31, 2022, are priced at $6.56 and are currently out of the money.

https://www.sec.gov/Archives/edgar/data/1293310/000121465921010653/xslF345X03/marketforms-54041.xml

https://www.sec.gov/Archives/edgar/data/1293310/000121465921010654/xslF345X03/marketforms-54036.xml

I suspect these prices could also curtail any shorting against the box, if there are stock option beneficiaries using these shares as a "locate." I can't say that I'm sorry about that, though.

When Durrant mentioned "the notion of stockpiles" in answering moderator Tiago Fauth's question about the outlook for lenz in the Covid indication (Credit Suisse chat?), that is exactly what we need. Getting approval for lenz to treat Covid is, by far, more important than being approved for other indications, in the short term. We need that burst of stockpile revenue to advance the more sustainable demand for CAR-T and cancer. And we all, whether company insider or retail investor, have skin in the game.