It Is Refreshing that the New Team Communicates with Shareholders
I am unsure how Mr. Market is going to react(if at all) to this news but there are 5 good signs:
1) New management team seems to operate under a transparancy mantra--a far cry from the secretive Houghton days when all was going well until it wasn't.
2) Management(and BODs) participated in Fall financing. Nothing speaks louder than putting one's own $$$ on the table.
3)Elliot is out 800 lb gorilla-hopefully they can add some legal expertise if CRMD ends up going toe to toe with Tauropharm over IP. Best case CRMD prevails in court and gets some very quick traction in Europe/Middle East.
4) Creation of Euro subsidiary likely means they have a well thought out attack plan for Germany and beyond. It was very smart of CRMD to hire an experienced "local guy" vs. trying to run the invasion from afar.
5) Concentration of ownership of dialysis centers in US may in some ways make eventual state-side expansion easier. Hopefully they learn a few lessons and are successful in the more fragmented overseas market before trying their luck in the DaVita /Fresenius dominated U.S. landscape.
Once CE mark is granted and (likely) financing complete, we will be off to the races. A 10MM market cap in no way reflects the promise here even with the appropriate risk discount. I smell truffles in this mud pile!
The options adjustment does bother me though. They set the deadline at March 31st and that was the right thing to do given all the delays we've already had. They didn't get the job done, so they just readjust and get paid anyways? If I miss a major deadline, I don't get my bonus. Why do these guys get special treatment? Had they gotten the packaging right the first time, they would have received their options and they would have earned them.
I agree and disagree. For those full time folks drawing a salary there should be a penalty. Guys like Pfaffle are only taking a meager hourly vig and doing much of the heavy lifting. He deserves his options.