PVCT Update - more Insider buying through their options - again, they could have purchased the shares on the open mkt for less - but they paid $1.10
secform4.com
Responding To Message #193 from Rutgers at 3/4/2006 9:17:58 AM
New Trade Alert - PVCT - been following for some time now as part of my Insider-purchase-trading models [HT to Allan Harris - link to his blog is here allallan.blogspot.com ] and as set forth in more detail below. Also, HT to Mark B for this one. My fills were interesting. I made two purchases this morning. Sometimes, like in this situation, I like to use all or none LO's so I typically use a higher limited price to make sure I get what I want. Anyway, despite my offer to pay more than $0.87, the MMs decided to keep her capped at $0.87/sh.
The name of the company is Provectus Pharmaceuticals (PVCT.ob). Its oncology portfolio contains Provecta™, an injectable oncology drug in development to treat melanomas, and focal tumors of the breast, liver, and prostate. Provecta consists of a sterile saline solution of rose bengal (10% w/v). In this formulation, the company claims that "Provecta is suitable for injection into and around focal tumors, such as those of the breast, liver, and prostate, as well as melanoma. This kills the injected tumor in a process known as chemoablation. Extensive preclinical studies have shown that Provecta specifically targets these tumors while having minimal side effects. Moreover, there is evidence that treatment of such tumors with the drug can elicit an anti-tumor immune response leading to elimination of metastases."
They are currently conducting clinical trials for both metastatic melanoma and recurrent breast carcinoma, which are Phase I trials. If interested, here is a link to each trial.
clinicaltrials.gov
clinicaltrials.gov
Here's a link to a report on the company: pvct.com
As I mentioned above, I have been following this one since I stumbled upon Mark B's posts that referred to the clinical trials - click here Message 21937188
and definitely click on this one in which Mark suggests that PV-10 is already FDA approved for other uses outside of cancel remediation as well as the ability of the solution to target and kill all tumors in the body - not just the tumors in which the solution is injected. Message 22048009
I find this compeling because anyone who knows anything about tumors will tell you that you cannot always remove the cancerous cells w/o harming healthy tissue. Indeed, I thought that presentation was so amazing [click here and then follow the link - pvct.com ] that this must be false or simply be a scam - otherwise, this stock should be priced many multiples higher than it is. Anyway, I did more DD and, while I did not love everything I found, I did not find any red flags. Then, on Dec. 9, 2005, I learned that EW purchased 264,705 shares at $0.75. Some time thereafter, they came out with the new financing deal, which indicated that some bigger players have some faith in this. In any event, this could turn into a nice LT hold.
Info on the CFO exercise of ISOs - courtesy of Smartmoney.com
"IF YOU PLAY your cards right with Incentive Stock Options, or ISOs, you could protect a significant amount of your profit from the IRS, thanks to two important tax advantages. First of all, you don't have to pay taxes immediately when you exercise ISOs — as long as you don't sell the stock you receive. Second, while you will have to pay taxes when you sell, you can qualify for the 15% maximum rate on long-term capital gains.
...
With ISOs, all the taxes are paid when you sell the stock and it's all capital gains. The catch? This deal applies only if you sell the ISO shares more than two years after the option-grant date (the date you received the option) and more than one year after you actually bought the shares by exercising your ISO."
Here's the full link: smartmoney.com
This explains it very clearly. It appears that the CFO has been methodically exercising at prices significantly below the exercise price to start the clock running on both the two-year grant condition and the one-year holding period condition.
It is also interesting to look at the CFO's NSOs, of which 100,000 shares will vest with an exercise price of $0.58 and 100,000 shares will vest with an exercise price of $0.75 on May 26, 2006. In addition, 60,000 shares will vest with an exercise price of $0.94 on December 9, 2006. Again, courtesy of Smartmoney.com, "with nonqualified options, you must pay income tax on the spread between the exercise price and the market price in the year you exercise. Then, when you sell the stock, you pay a separate tax on the spread between the market price at exercise and the price you eventually sell it for.
In sum, it looks like he has 200,000 shares vesting in a couple of months that are in the money. Yet, he has been excersing ISOs by paying cash for shares at a significant percentage over exercise price. At a minimum, if the stock does not beyond $1.10, he will have a long-term capital loss to write off. Interesting to say the least.
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