Found this 2+ years old article ( see below). Anyone here remembers those times ? Care to elaborate on what happened ? Was the company really in such a bad shape back then ?
The current CEO talks about money too much for my liking. I have 10k shares, have more cash ready , but not sure if I want to get more.
November 17, 2010
Cellceutix CEO departs suddenly
By Ethan Forman Staff writer
When George Evans, former CEO and chairman of Cellceutix Corp. in Beverly, left this month over a disagreement about his pay, the company filed the executive's resignation e-mails and its response with the Securities and Exchange Commission for all to see.
The Cummings Center company is a biopharmaceutical focused on therapies for cancer and inflammatory diseases. It told the SEC Evans resigned on Nov. 5.
Leo Ehrlich, the company's chief financial officer, has taken over until Evans' successor is appointed.
"Cellceutix was not going to renew Mr. Evans' contract on the terms he demanded," Ehrlich said in an e-mail. "His letter, in the [Form] 8K, was his response."
In a Nov. 5 e-mail, Evans asked that his back and future salary be paid within 30 days or he would "be forced to consider other actions." He also asked the company purge all references to him from its website, except to explain he is no longer with Cellceutix.
In a Nov. 8 e-mail, Evans took issue with the company's saying he "resigned."
"I did not resign," Evans said. The company ended his contract without cause, he said, and he "terminated the agreement with good cause" — the good cause being "reduction in compensation without my consent."
Evans said Cellceutix owes him $1.7 million in salary through December 2012, plus stock options, bonuses and other compensation.
"I was surprised and disappointed to receive this e-mail from Mr. Evans," wrote Ehrlich, who said what is most important is that the company's product reach clinical trials.
Evans' departure could put the company in a "vulnerable position," Ehrlich wrote, "given its cash position of less than $5,000."
Evans wrote that federal grants should be used to pay part of his salary. Cellceutix recently announced it had won $730,000 in grants for three of its research programs, including one for a therapy for drug-resistant cancers.
The day Evans resigned, shareholders approved a 1 for 50 reverse split of the company's stock to "vastly improve the company's capital structure, to enable the company to raise the necessary capital to litigate or settle with George Evans, finance its continued development, and fund planned Phase I studies," the company said.
Ehrlich wrote that the company disagrees with Evans' claims, and noted that "possible litigation relating to Mr. Evans' demands will make it difficult to attract investment in Cellceutix" as a reason for the reverse stock split.
