never a good thing for any investor. IMUC wants you to vote to give them authority for milions of new shares. How can the stock price stay above $3 a share? Answer = it can't and won't. Don't buy the "no plans to issue new shares just want the additional flexibility". It's all BULL
If you take the time to read the proxy you will see the following..."Although, at present, the Board of Directors has no other plans to issue the additional authorized shares of common stock, it desires
to have the shares available to provide additional flexibility to use its capital stock for business and financial purposes in the future. The
additional shares may be used for various purposes without further shareholder approval. These purposes may include raising capital; providing
equity incentives to employees, officers or directors; establishing strategic relationships with other companies; expanding the Company’s
business or product lines through the acquisition of other businesses or products; and other purposes."
Keep in mind, management owns 12% of the stock (more than I'm sure you do). If it were such a bad idea to authorize more shares, would they vote for it?
Yes you are correct. In my opinion the increase in authorized shares is necessary to rollout ICT or to build a manufacturing facility or to prevent a hostile takeover or to support and promote their pipeline, etc. The good news is that IMUC has 51M outstanding and another 21M in warrants. Most bios have hundreds of millions of shares and are forced to do a reverse split. IMUC can handle the increase and will use them wisely as their record has shown. Necessary move for the company to increase the authorized shares and fairly conservative. Good luck!
Management of ALL company's love to add shares to their OWN pocket ...you just mentioned they need the shares for ...flexibility, "various purposes", "incentives" for themselves (gee increasing the share price would do this or am I just whistling out of my #$%$, "establish strategic relationships", expanding the company and product line ( yes that takes money...so they have $25 MILLION BUCKS) . Acquisitions- wow really, WHAT ACQUISITIONS ??? THIS IS ALL BS. Give the shareholders the game plan, ...so far its all talk and no GOOD REASON TO DILUTE A $3 DOLLAR STOCK.
They have $25 Million bucks CASH and No debt. Diluting gives them a big chuck of the shareholder value, while we eat the dilution. Who in their right mind would vote for this now? To protect the company from a BUY OUT....well heck how would that hurt the shareholders if MRK offered us $10/ share, is that harmful to us little share holders? Absolutely NOT. A NO vote sends the greedy management we are not going to fall for this #$%$. They want the Value and are planning to get it from the shareholders. Vote NO
It's VERY obvious you don't understand how compensation works for executives (which happens to be my profession) and the fact that ALL shareholders are affected the same way by dilution. Management would NOT be in favor of doing anything that would dilute the value of the stock long term unless the company were in trouble financially which it is not at the present. Their timing is excellent......if you don't believe this, a better solution to voting "no" is to sell your stock (if you have any).