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Bullboard - Stock Discussion Forum TELESTA THERAPEUTICS INC T.TST

"Telesta Therapeutics Inc is a biopharmaceutical company. The Company is engaged in the research, development, manufacturing and commercialization of human health products and technologies."

TSX:TST - Post Discussion

TELESTA THERAPEUTICS INC > Further Entrenchment of Management
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Post by Nohandledzep on May 08, 2013 9:42pm

Further Entrenchment of Management

I took a moment to review the initial release of GW, where they were explicitly "warning", for lack of a better word, the BOD not to take measures to further entrench management. Strong words, perhaps even ominous, that conveyed a sense of an impending procedural move or vote of some sort that might be perceived as offsides!

 

I got to thinking...there are very few steps that could be taken to further entrench McRae and his management team beyond their well entrenched positions. But, with an apparently well backed dissident movement against McRae, where retail support for GW will by all accounts will be overwhelming, one option would be a massive, cheap and friendly share issue. This would have to be voted on by the board, but it would surely further entrench management, possibly giving them the number of shares they require to stay in power.

 

Devastating to shareholders in every way shape and form, but maybe a necessary survival tactic for the Regime.

 

Unless McRae can pull out  one or a series of incredible Urocidin deals, he's lost his shareholders support forever. I don't know how likely this is. 30 Pharma's may have contacted them, but as far as we know all 30 didn't like what they saw and walked away.

 

If anyone here ever hoped that their board does and will continue to exercise their fiduciary duty to shareholders, you can sleep easy.

Comment by thePlayer on May 08, 2013 10:14pm
NoHandle, I think as horrible as equity financing will be for us, real shareholders, it won't be the end of the world for the following reasons: 1. Issuing equity (as you stated probably with warrants attached) in current environment for what... 10-15 cents per share with warrants will be literally a knife in the back of current shareholders. It would be Betrayal and Treason, it would be ...more  
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