Maybe they should but I doubt that will happen in a PR.
It will probably come up as a question from analysts on the next earnings call.
Possible, that the new shares would be used as part of negotiations, but my feeling is less probable. More often it's upfront cash injection into the biotech, for distribution and proportion of future sales revenue for the partner.
They only have 14.3M shares available for issuance. That's roughly 5.7% of all of their authorized shares. The explicitly state they do not have any intention, or need, a the moment to issue any more shares but running this close to having almost all authorized shares issued is pretty dangerous. If the time comes and they do need to raise cash, obviously not now, they wouldn't even be able to. Having the extra authorized shares will give them more flexibility if the time comes where they do need to issue more shares.
It's definitely poor management on their part to push it that close but at this point there isn't really anything they can do other than try to get an increase in the authorized share count. I could be wrong but I believe this is the first time they included any explanation in the proxy materials. With it being voted down again and again I think it's time to vote for the increase. At least then they can stop worrying about it and focus on more important matters at hand.
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