My concerns are managment. They are careless in their dealings. They just raised $61 million in two public offerings
and have wasted $9.5 on the Apollo termination transaction. $450,000 in severance to Avery (really?), Agreeing to pay 11% on the promissory note to Apollo..again(really). The Apollo deal itself. The terms of it were rediculous and all one sided. It have them millions of dilutive shares on top of a percentage of royalties and the high interest rate. The timing of the last secondary. The stock was almost$4.25 after announcing the Sinchuan Chemical deal. Instead of allowing the stock to rise they quickly announced a secondary that took the stock down and then they dragged their feet until the stock was $1.75 again diluting shareholders.
Yes I agree. The old CEO fleeced its investors but that's all in the past. The big shareholder i.e. Blackrock and Cor, have to be really upset at this management and stock performance. I would expect that they will do something about that. If you're a first time buyer at these levels, it's a great spec buy and hold imo. I loaded up and plan to pyramid my investment as the stock rises.
We have a new CEO and I assume the wasting of money was the reason for this change. I'm glad the Apollo deal didn't go through, I got a shot at some cheap shares. The severance of $450K is only one year salary and I'm surprised it wasn't more being a CEO.