RE:Proxy VotingOn the topic of the shareholder vote for, or against, the continuation of the stock option plan: I've given this lots of thought, exchanged private messages with several other shareholders and read the various posts for both positions.
First of all I think it's safe to say that the vote will pass regardless of how we small individual shareholders vote. The vast majority of retail investors either can't be bothered to vote or can't figure out how to exercise their vote and even if a significant number do vote against the continuation of the stock option plan we just don't have the numbers. So, you might say, I'm going to vote "no" anyway to send a message that I'm not happy with how things have been going and with the efforts of the management team. I asked myself the question; am I happy with the efforts and progress? Do I want to send a message of non-confidence?
Some readers here might remember me mentioning that I've been invested in Amorfix/Promis for a loooong time - something like 12 years. Retiredcop has pointed out, and reminded me a few times, that I need to forget about the time before 2015. The company was restarted new in 2015 - new name, new management. OK, so we restart the clock in 2015 and now I consider myself to be a 3 year investor. Am I happy with the progress over the last 3 years? Yes, I am. In 2015 we were trading at 3 cents for a while and now we're at almost 40 cents - that's what, a 1000% return over 3 years? Sounds pretty good to me. Of course no current shareholder has an average book value of 3 cents, my own is much higher but I'm well in the money at the current price and I would think that almost everybody is in the green at this share price.
So, if you're in the green at these prices and still not happy what is the problem? I've read some posts that complain about "dilution" and about how the management is paying themselves (with options) too much. Well, look at the progress: the epitopes have been developed, proven and patented. The timeline provided by management has been followed and the company is solvent. Lots of talk about the lack of a "deal." Well, I don't want a deal. More correctly, I don't want a deal now. Look, for example, let's say management felt pressured to accept a deal now, found one at $5/share. We all make a bunch of money - is that a good news story? Not if the value of the science is worth much more.
I get it. The progress is slow and we all wish things would move faster. If you don't really think PMN has the "goods" I guess you'd want a quick jump in share price or a quick deal to make your exit. For me, on the other hand, I think we really do have the potential to bring to market a viable treatment. The further we get into that progress before a deal the higher the ultimate value of my shares. In fact, and I've posted this here before, if some company comes along and buys out the AD portfolio, or the entire company, I would simply take the proceeds from my shares and roll them into the company that bought us! The really big money will come from the successful phase 3 trial. For me there's really no difference between selling out now, investing my proceeds in the new company and waiting for phase 3 or selling after phase 1 and investing in the new company and waiting for phase 3. I'm going to ride this thing to the end - PMN, or whoever ultimately buys the science and intellectual property from us.
I respect the opinion of my fellow shareholders and understand the frustration over the slow progress but, for me personally, I'm happy with how things have been going and hope/expect that mangement will continue to move the science forward and not settle for an expedient sale or deal (which is what they've been doing so far).