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InVivo Therapeutics Holdings Corp. Message Board

  • mikerconfer mikerconfer Sep 6, 2013 3:33 PM Flag

    Governance - It's Not Just About the Uplisting Anymore

    Pretty much everybody has at one time or another caught "the Common Cold" and we've all dealt with it in any one of several ways: tough it out; take some over the counter remedy; stock up on facial tissues; or, maybe fall back on Grandma's home remedy. That last one was always a personal favorite since my Grandma's home remedy included a shot of Irish Whiskey - but I digress. The point is that since there's no cure for the Common Cold, we're left with dealing with the symptoms, which is a perfectly reasonable thing to do.

    Now what's reasonable with a Common Cold isn't quite as reasonable when you are dealing with pneumonia, say or any other ailment which is actually curable. In that case you certainly address the symptoms, but the real focus is (and should be) the cure.

    The reason that I bring this up here is the Conference next week. I've seen a lot of people posting looking for reassurance on upcoming catalysts (notably the NDA for Hydrogel, but some update on the uplisting process as well and even some additional detail on the approaches to human trials for the scaffold). Now that's all well and good but it's kind of like focusing on the symptoms rather than the cure. Again, great if you are dealing with the Common Cold but not so much if you are dealing with something more serious.

    What I am hoping for is that we will get some indication that the Board has taken control and is actively working to correct issues of Governance. I'm hoping for that not because of the uplisting but because it was a failure in Governance that inexorably led to schedule slippages and disappointments and deeply crippled the most important asset that any public company has: investor confidence. The catalysts will take care of themselves over the long run and if you are confident in the technology (as I am) there are no worries there.

    If you have a busted axle, you fix that before you change the tire. As usual, just my two cents.

    Have a nice weekend. Be safe.

    Sentiment: Strong Buy

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    • I'm bumping this because, clearly, this afternoon's events play into the discussion. With the addition of a third Member to the Audit Committee and the assignment of a new (non-Executive) Chairman, clearly the Board is in the process of taking control here and improving needed checks and balances. This process is never like flipping a switch and it is never less than traumatic when viewed from the outside.

      How the CFO's abrupt departure plays into all of this is anyone's guess although tink's post suggesting that it might have to do with post-hoc insider trading regulations is at the very least creditable. The cancellation of the Conference presentation would fit with this as well. This leaves me with the conclusion that serious steps to resolve the underlying issues are being undertaken, and that we may see real progress on several fronts in the near term.

    • Dang Mike! Another brilliant post! You keep outdoing yourself!

    • Hey Mike - personally I believe the corporate governance issues were taken care of, and now it is all about whether they uplist or not. I personally believe the corporate governance surrounded Frank - his statements, his titles, his % of ownership, etc.

      Those have now been fixed with his resignation and the new people wearing the new hats. I don't believe there was anything more to be fixed from a governance viewpoint. Of course I could be wrong, but I'm pretty confident in my opinion/thought.

      As for analogies with colds and the like, the SEC and the Street don't really care about what remedy is taken - they just care that it was cured. Wall Street and investing is a zero sum game (as I know you are aware of as I have read your posts).

      IMO - the diagnosis was given when the SEC rejected their filing, the remedies were taken with actions regarding Frank and the new gang, the problem is now behind them, and now it is a question of 'what next'. Do they uplist, or do they postpone it? So in my opinion - we are beyond the remedy stage; we're cured, which means the uplist IS the topic. GLTU and have a great weekend as well.

      Sentiment: Buy

      • 2 Replies to fagenbecker
      • Mike and then Fagenbecker. Two of my faves here.

      • Okay, let me take this a step at a time. It isn't the SEC that regulates the uplist; it's the charter and bylaws of the Exchange to which you apply. The SEC simply doesn't care how well- or poorly-governed a company is, they just regulate the trading in that company. They aren't involved in listing or de-listing although when there are egregious violations of trading practices they can rescind a company's certification to be publicly traded. (Although based on the last several years track record I think it actually takes the axe-murder of an SEC Official to have THAT step taken).

        Second - Frank's departure fixes absolutely nothing in and of itself although that departure may permit those issues to be fixed. So will the reduction in shares he personally holds that we have seen this week.

        You are right that the Market won't care what specific steps are taken to "cure" these problems - any more than the patient cares what medicine is administered to cure a disease - but they will darned sure care that a cure has been undertaken and that they didn't just run down to the five and dime to get another box of tissues. If Frank's departure was the "cure" the Market would have responded with unanimous joy and celebration. I missed that response in the midst of the crashing "thud" that was the stock price going into this week.

        Again, I think that we need concrete assurances that this organization is going to be run like a real business - not like some movie from the thirties where Mickey Rooney and Judy Garland take their marks and say "Hey kids! Let's put on a show!!!!" (See, I told you I was old....)

        Have a good one.

        Sentiment: Strong Buy

    • Nice post. We had 2 busted axle's these last 2 weeks haha

      Sentiment: Strong Buy

    • I concur...

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