I debated whether to chime in here with my $.02, but what the hail.
I talked to Mr. Wunderlich about 3-4 weeks ago when I was trying to determine which way I should vote on the items on the proxy statement. I asked how these issues would benefit me as a shareholder if I voted in favor of the issues. He obviously wasn't going to tell me anything that I didn't want to hear as I knew which way he wanted me to vote. I don't remember the whole conversation verbatum, but do remember the main points we discussed.
The whole discussion obviously revolved mainly around the increase in the amount of shares. He made his plug for the compensation for the employess which I know has been discussed on this board. The strike price and holding period I wasn't aware of at the time, so that part of the discussion was pretty short. He talked about the anti-takeover issue that by having the extra shares available, they would be able to better avert a hostile takeover. Made sense to me. He also said one of the biggest reasons for the extra shares was "possible" acquistions in the future. He stated that may never happen, but it was important to have shares handy so they could act fast, rather than not have them handy, spend $40-$50K for a special shareholders vote, and lose out on a possible important oppurtunity. That also made sense. He also stated that they have spent $16 million, (not sure of the time frame) compared to alot of other bio-techs out there spending $20 million per quarter. He didn't give any examples, but I think he was trying to say they were running as lean as they could. The last thing he emphasized was the fact that they are all shareholders to, so to dilute the price of the stock would not benefit them on personal level either. They want the price of the shares to go up just like we do. He also said getting a Nasdaq listing this year is big priority. Not sure what the exact requirements are, but I do know the PPS has to be above $3 (I think) for a certain period of time (90 days I think). Feel free to correct me on this one. One other thing he did state several times was the fact that there was a strong likelyhood that this increase in the amount of authorized shares may not ever be issued, but that is an unkown depending on many different things. IOW, they don't have any intentions of flooding the market with shares is the way I took it.
Now my thoughts coming from a DA construction worker. A 2-1 split would do the company no good at all for acquisitions. If I have 50K in shares and they make it 100K, I'm not giving them up, so how could they use them for their (the companies) intended purpose. Sounds good to me personally, but know good for their purpose. Hopefully this might happen in the future, and that will be good for all of us. They do seem to be controlling their expenses the best that they can considering their limited available funds which I think will only be in our favor on down the road. Although they may have made some deals that don't sound all that great in the past, they probably could have made some that would have hurt the value of our shares alot worse. (those floorless deals discussed the last two days).
That was my first experience talking to a CFO of any company and I was a little hesitant to make the call. Mr. Wunderlich was very cordial and I never felt like he was trying to run me off the phone and he answered all of my questions, although my list was probably pretty short. I'm starting to feel a little like Skoob with this novel, but just thought I would share my thoughts and what was shared to me with my discussion with the CFO. Hopefully after tomorrow, alot of these questions that everyone has will be put to rest, and the PPS will start heading north, way north.
Good Luck
Market Data 
Markets 
AI
