Humanigen Inc (HGENQ)

[cowtown jay]

Welcome to the room, dorf1. Uh, yes, I'm a real person. A created version of me would likely not claim an open buy order as modest as is mine. But I really hope that my buy order fills, because I'm only focused on the potential of having so many more shares when management shifts us out of neutral, and into drive.

I expect that we could announce positive regulatory news in terms of authorization or approval to treat CMML and/or covid.

I also expect that management will recall their loaned shares.

Both events will significantly increase demand for shares.

Management currently does not have enough shares in the market to meet the demand.

A 5:1 forward stock split will increase the supply of shares available to meet demand, without causing dilution. This is the stripped-down simplified version of the answer to your question. It gets more complicated, but I decided not to develop the following answer.


I think management plans to declare a 5:1 forward stock split, which would give us an OS of (119,080,135 x 5 =) 595,400,675 shares. If they conclude a business combination, they have said the entity we form with our partner will receive two times our current OS, which means they would get 238,160,270 shares, leaving us with 357,240,405 shares, or 60% of the shares.

Unless we get a Priority Review Voucher, or funds from an Advanced Purchase Agreement, we will need an Equity Offering. As it stands, the above would indicate that we can only sell about 53.5M shares to retain control.

I think we have an open shelf registration to permit the sell of about $80M worth of stock. So we would need just under $1.50 per share by resuming the Controlled Equity Offering.