I guess my point here is if Stoll is the right guy for the job. Does he want to sell the company out at say 1.50? I doubt it; the 9.7 million dollars have an average strike price of 2 dollars, so a quick sale is not in management's interest. If you get nothing as CEO now for a sale at say 1.50 a share, why not risk running as many trials as you can to create value in the next 12-18 months?? So their options will be in the money.
I don't feel Stoll has done his job with any degree of follow through, detail, competance of regulatory issues, or even biotechnology savy. One can argue bad luck, who could have predicted the FDA's verdict? But, after 18 months to "think" about it, is there a back up plan. If Stoll had kept pace with CX701 development and kept his June timetable for IND submission and July for starting the phase I trial, we wouldn't be at 80 cents today. I'm sure he demonstrated zero interest for a "low ball" deal for the high impacts, because Roger "saved them" for a future day.
One can argue/defend Stoll, but I'll cease since it won't help the situation. Whatever "sins" of Vince Simmons, when the Shire trial blew up, the Board acted and fired him. It was the right thing to do then, and it is the right thing to do now. Let him reprice his options as a kiss goodbye, anything, just replace him in the immediate future. I seem to recall Dr. Lynch taking the helm for a short period of time in the past during one of these "transition" periods... perhaps that would be an option here.
I doubt Stoll is the guy who would accept a deal because it would be against his 2 million options at around 2 dollars a share.
With 18 million dollars in cash on hand, and a share price of 80 cents, things must move forward in able manner. Even more, in a positive manner, with milestones met and surpassed. Enough of this dawdling. The BOD should move in here.
I'm sure Dr. Stoll may be a fine human being, but our investment value going forward should be based more than his ego.
The BOD should bring in new management who will examine all options moving forward with a fresh eye. I think a breath(or maybe several)of fresh air is needed in Irvine. Pronto.
In any form of organization: political, economic, biotech, pharma, medical... when the CEO leads a solid effort, did his best, but was met with comlete failure with no backup plan in place, it is time for him to move on. If the Shire debacle warranted Simmons firing, why wouldn't a larger blow up warrant Stoll's canning.
Personally, if Rodman sponsered a buyout at the 1.50 range (84 million in cash, x'ing out the 9.7 million in executive options and 13 million in warrants), I'd vote for it without question. If we get a new vision in place with new leadership, I might reconsider.
Bottom line: if Stoll stays, there is no interest(economic, to him) to accept any sort of deal less than 2 dollars. It is worth it to him, letting the company run out of gas in two years on fumes, collecting that last paycheck. In doing this, there is a chance of some good news to change his fortunes. But there is zero reason for him to consider a 1.25-1.60 cash offer. I don't think this is the guy to talk to prospective buyers.
I guess the analogy would be if a used car salesman sells the car, he loses his job and options, but if he dawdles around the parking lot for two years, he collects a paycheck.
But, forgetting the option talk/self interest talk, I don't think he's the right choice moving foward.
