Item 5.02. Compensatory Arrangements of Certain Officers.
On April 13, 2015, CollabRx's Compensation Committee approved a $150,000 cash bonus to be paid to Thomas R. Mika, President, Chief Executive Officer and Acting Chief Financial Officer of CollabRx, upon the execution of the Merger Agreement.
Mr. Mika's New Employment Agreement provides for a one (1) year initial term, with automatic one (1) year renewals thereafter unless written notice is provided otherwise. Pursuant to the New Employment Agreement, Mr. Mika shall become, upon the closing of the Merger, Chairman of the Board of CollabRx and President and Chief Executive Officer of "New Sub" (as defined in the Merger Agreement). Mr. Mika's New Employment Agreement further provides for a base salary of $310,000, and severance, upon termination by CollabRx without cause or by Mr. Mika for good reason, consisting of (i) two times base salary plus $266,667 plus 24 months of COBRA premiums, if the termination occurs within the first year of employment, or (ii) one times base salary plus 12 months of COBRA premiums, if the termination occurs after the first year of employment.
Thomas Mika, CEO of CollabRx, said: "I cannot be more enthusiastic about this outcome for all CollabRx stakeholders, including our shareholders, customers, team members and advisors. CollabRx will continue its mission to better inform decision-making in cancer within a high-growth, profit-oriented company, while being able to support several exciting Medytox initiatives in precision medicine."
NOT BAD FOR NOT DOING ANYTHING SINCE MID APRIL. A CASH BONUS OF $150,000 AND AN ANNUAL SALARY OF $310,000. FIRE HIM AND HE GETS ANOTHER 3/4 OF A MILLION PLUS TWO YEARS OF PAID MEDICAL INSURANCE. KEEP HIM AND YOU WATCH YOUR STOCK PRICE DROP LIKE A COLORADO SKI SLOPE. MY ADVICE? FIRE HIM! AT LEAST YOU WILL END UP WITH SOMETHING! EQ
PS I WONDER WHO IS ON THE COMPENSATION COMMITTEE THAT GAVE HIM ALL OF THIS WITHOUT REGARD TO ANY GOOD RESULTS? EQ
real great merger huh? a 10 to 1 ratio is stupid.. Medytox is junk and loaded with DEBT. I'm guessing medytox has $80 MILLION or so in DEBT, which is preferred stock and another $9 million in TAXES DUE.. medytox is a disaster
Sentiment: Strong Sell
exactly evanventures.... The combined company is the prize. No matter what these short bashers say. Mmms is sound and the company is going through a lot of growth.
You're missing the points here. The merger was done for basically two reasons. One, MMMS is profitable and the NOL carryforwards are worth paying money for them. Two, CLRX is and always has been controlled by Mika and his hand picked Board. He wants to continue drawing a salary and benefits. Nowhere in this deal is there any consideration for the CLRX share"holers". Mika drained the company over years of all it's worth till the well was dry. Then he sold the dry well for continued salary and benefits. Share"holers" have not gotten a thing for their money over decades in this thing. The only water left in CLRX right now is the reverse spit on the share"holers" coming up. The only mystery on CLRX is how long can this pattern of draining continue before some share"holers" bring suit. Not the pinstripe one. Can't believe how much he has gotten away with over the years. No one has challenged him so he kept on draining it. What, about $130 million or so. Good God when will people learn. But go ahead and give him more money if you want. He has now what he wants. A continued salary and benefits. I wonder if his new deal has the same massive severance package like CLRX's. If CLRX tried to get rid of him his severance would have bankrupted the company. It might be justified if he actually did some good for the company, but considering his history it does not make any sense. Throw in the anti-takeover agreement he had in place many years ago and you can kind of see a pattern here. But, no one is daring enough to challenge him. So give him your money! EQ
CLRX is a downer I agree but MMMS would not consider a transaction if it wasn't favorable. No one here is betting in CLRX but a mutual benefit of a merger that would support MMMS.
You might have a point if CLRX or MMMS were in the S&P 500, but alas, their not.
CLRX has already had two reverse splits. How'd that work out?
What else did CNBC have to say?
I'm excited to see this go through. 14 stocks have done a reverse split in the S&P 500 since 2000 and 12 of those 14 were up big within a year... Average 62%
Yes it will be but after a 1 for 7.5 reverse split before merger. I'm in it to see how it goes
Those who believe the merger is bad don't realize how much medytox plus collabrx are worth combined on the Nasdaq. Stupidity. Collabrx will be $4 by year end.
Sentiment: Strong Buy
a quick sniff of medytox balance sheet shows MASSIVE DEBT is on the books.. $9 MILLION in UNPAID income taxes sits on medy's books.. horrible by itself. medy is shirking the IRS... real ethical folks at medy don't ya think? THEN there's I would guess about $80 MILLION in preferred stock on the books.. preferred stock is essentially DEBT because these holders receive a dividend which is in the millions .. ... And the 10for 1 merger ratio is awful.. should be 3 to 1 at most... if this scam merger goes thru, I suspect stock to continue to plummet
Sentiment: Strong Sell
I believe this is because MMMS is garbage. MMMS is littered with $70 MILLION in preferred stock which is essentially DEBT... Also MMMS has $9 MILLION in unpaid income taxes on it's books. It would be better to let MMMS declare bankruptcy. And if CLRX is merged with them, the combined company would likely lose money.. .afterall CLRX itself loses $5 million per year. So even if MMMS could manage $2 mill annual profit, the $5 mill CLRX loss would create a $3 mill annual loss.
Sentiment: Strong Sell
MMMS cannot be traded so I'm not sure what you are saying. A 10 percent or 90 percent it will not matter since MMMS is after the stock symbol not the CLRX. Once merged both companies will trade under CLRX.
Can't you follow a conversation? bullbearyikes was talking about Mika and you responded by saying he bought a ton of MMMS shares. No, Mike did not buy a ton of MMMS shares. Show me the Form 4.
Last sixteen trading days the stock has traded a whole 200 shares. At it's current price of $3.25 that's $650 of trading volume. That's what current CLRX share"holers" have to look forward to once the merger is done. BTW Your buddy that bought those shares at $2.50, they were not for himself. He reported owning no shares after the trade. And you forgot to mention that just a month earlier another insider dumped more shares than the guy you are jumping up and down over. The merger was simply done for the NOL's. There was no more gas (cash) left in the tank after Mika drained it, and all the other assets. Now, he puts you and all other share"holers" in bed with a company that has no trading volume. He gets his salary to continue. He bled this thing till the very end with empty promises of everyone becoming rich some day. If that isn't the definition of a thief I don't know what is. Let's do the math. You get 10% of a company that is trading at $3.25 a share, although it's just barely trading and they are selling shares at $2.50. What a bargain! EQ