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Biotech / Medical : Provectus Pharmaceuticals Inc.
PVCT 0.06400.0%Nov 7 9:30 AM EST
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To: Khris Smith who wrote (12718)3/14/2014 9:40:03 AM
From: boomertree21 Recommendation

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Khris

My take is that it is mixed news. The good news is that 2 years of excessive compensation has been partially corrected, which will result in the 4 bad actor officers repaying $8.96 million in bonuses to the company, and forfeiting half the stock options granted in those years. The cash will put the company in a stronger cash position, and the option forfeiture will avoid some dilution in the future. New corporate governance provisions have been adopted to prevent recurrence.

The bad news is the officers that allegedly breached their fiduciary duties to the shareholders remain officers of the company. Their continuing as officers undermines the market's faith and confidence in the leadership of the company, and I believe materially depresses stock price and institutional investment. The $8.96 million was after tax, so it represents almost $15 million in actual bonuses that the officers potentially improperly awarded themselves over two years........that isn't chump change. During this same time period the company had no revenues, was running out of money, and conducted private offerings that materially diluted the shareholders with cheap stock and warrants. If the bonus money had been properly reserved by the company to fund trials and research, then the dilutive private offerings would not have been required, and all our shares would be materially more valuable. The damage to the shareholders far exceeds $15 million. The officers should resign. I don't trust them and I don't believe they are competent to make the business decisions required to maximize shareholder value at this critical time.
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