Humanigen Inc (HGENQ)

[cowtown jay]

I hope Dale gets a favorable decision from the Appeals Court on Tuesday, and that I don't have to spend time on what looks like a complicated set of circumstances. We'll know soon enough.

But when you take the design of our share structure, involving ~ 6-8 entities controlled by Dale, and the Admin Proceeding filed against Murchinson, it's easy for the SEC to force Dale to prove his innocence, which is NOT the way the system is designed, except for the IRS.

"1. These proceedings concern Respondents causing the executing brokers of
a hedge fund (the “Hedge Fund”) to violate the order-marking and locate requirements of
Regulation SHO of the Exchange Act, and Respondents Murchinson and Bistricer (the
“Murchinson Respondents”) causing the Hedge Fund to act as a dealer without
registering with the Commission, or being exempt from registration, in violation of
Section 15(a)(1) of the Exchange Act.2
2. From January 2016 through October 2017 (the “relevant period”),
Respondents caused the Hedge Fund to place “long” sale orders with its brokers. At the
time hundreds of these orders were entered, the Hedge Fund was not “deemed to own”
the stock being sold and did not have a net long position in the stock for the purposes of
Regulation SHO. Respondents should have identified these orders as “short” sales.
Because this order-marking information was erroneous, Respondents caused the Hedge
Fund’s executing brokers to mismark such sale orders as “long” in violation of Rule
200(g) of Regulation SHO."

https://www.sec.gov/files/litigation/admin/2021/34-92684.pdf

This was further complicated by the Kalobios name change to Humanigen at this time.

"KaloBios Pharmaceuticals Inc. will change its name to Humanigen Inc., effective Aug 7.

The new name reflects the company's focus on neglected and rare disease, said Cameron Durrant, managing director, chairman and CEO of KaloBios."

https://www.globenewswire.com/news-release/2017/07/27/1063782/0/en/KaloBios-To-Change-Company-Name-To-Humanigen-Inc.html

As far as Humanigen's previous CEO, the SEC (heck, the whole US government), had a problem with him.

"The Securities and Exchange Commission (“Commission”) deems it appropriate and in the
public interest that public administrative proceedings be, and hereby are, instituted pursuant to
Section 203(f) of the Investment Advisers Act of 1940 (“Advisers Act”) against Martin Shkreli
(“Shkreli” or “Respondent”)."

https://www.sec.gov/files/litigation/admin/2017/ia-4753.pdf

Even among senior Humanigen shareholders here, there are a number of them who swear up and down that the Form 4's prove that insiders were selling shares, while I think they were only transferring shares between nominee and beneficial owner accounts.

I'm assuming that the action Dale is Appealing is related to the above charges against Murchison. If that is not the case, I'll continue to look for an Admin Proceeding or Litigation Release naming Black Horse.

My nonchalant attitude is because, if these charges really do stem from the Murchinson case, it will be easy for Dale to prove that any funds disgorged from his entities should be returned.

I think this is an over-zealous prosecution by the SEC against all things Shkreli and Kalobios related, especially as our initial recall of our loaned shares would not have been possible if the SEC was controlling naked shorting of the company's stock. That's a lesson that they still haven't learned.

I really should continue to look for the charges relevant to this case. I'll do it if I have to, but the case may be Appealed before then, and I have a lot of confidence in Dale. Fire at will, Dale!