For those of us who are apologists for Mgmt and BOD re ATM questions I would like to have asked at tomorrows presentation:
Two key issues in PPHM are timing and ATM dilution.
One way to avoid ATM dilution is by asset sale (IP sale):
1. Can you give me some "color" on Hepc partnering or viral partnering in general? Is it dead until PPHM runs more clinicals to further prove value or are discussions alive? How much time do you need till you can tell whether anything will be fruitful?
2. Can you give me some "color" on Cotara? How does the FDA seem disposed toward the SPA discussion?? How do the potential partners sound? What is best guestimate on timing till a resolution???
3. Can you give me some "color" on "imaging" partnerships? The smartest guy in your room, Dr Thorpe, thinks this is the finest three dimensional tumor imaging he has ever seen. Is this a dead issue until PPHM runs further clinicals or can something be done here and if so approximate timing to resolution???
4. Does PPHM have any other financial options other than ATM and if not why not???
a. Wouldn't it be better to leverage Avid in a segregated fashion than to keep selling ATM??
b. Wouldn't it be better to leverage the whole company for 50mm than to keep selling ATM. 50mm in leverage at 10% would only require 5mm ATM shares / year to service the debt as opposed to 40mm ATM shares as equity.
c. Aren't there any potential partial equity sales that could be made instead of ATM such as a regional partner albeit for less than top dollar???
d. Aren't there any cost cutting measures that could be implemented to reduce burn? Couldn't top exec salaries be halved and deferred until this issue is solved?? Couldn't board compensation be completely deferred until this dilution issue is completely resolved?
e. Couldn't the sales force at Avid be beefed up to increase cash flow and cut dilution from the ATM???
f. Couldn't the current CFO be replaced by a heavyweight with biotech financing track record??
g. Couldn't the BOD be beefed up (with no loss of control) with heavyweight Biotech deal makers, or IBs, or ex execs from BP??? as a signal to the street that PPHM means business. ?? wouldn't this signal be bullish in the extreme so that even if ATM was used it would be much less dilutive???
You get the message.
Best Regards,
RRdog
