Claudia Drayton is a 44 year old finance professional in the middle of a highly successful career with Medtronic where she had received steady promotions for 15 years. Had she stayed at Medtronic, the coming decade would undoubtedly have been the highest compensated decade of her life. Instead, she chose to leave her very secure, very well paid job with Medtronic to join a tiny start-up with about 18 months of cash left to burn. All she received for changing jobs is the option to buy 100,000 shares of #$%$ today's close.
Why would she do that? Does she believe the trial will fail? I highly doubt it. Does she believe there will be massive dilution, rendering her options worthless? Again, I highly doubt it. I think it is safe to say that Claudia is bullish on SSH.
What Claudia believes is that those options are going to make her fabulously wealthy, even more wealthy that she could have been had she stayed at Medtronic. Which means she believes that the trial will be successful, the company will be successful, there will not be catastrophic dilution, and she believes that with enough conviction that she just bet her entire career on it. I should note that Kim Oleson and Brian Brown made the exact same bet.
Maybe Claudia believes this will happen because earlier in her career she was Finance Manager for Corporate Development and M&A for Medtronic where she "led due diligence efforts for potential acquisitions and minority investments including acquisitions of companies. Assessed appropriateness of purchase price allocations and intangible valuations.Reviewed proposed minority investments structures to ensure optimal financial and accounting outcomes. Presented findings to Medtronic’s Chief Financial Officer."
Claudia knows far better than anyone on this board whether she can sell Sunshine Heart to Medtronic for a premium, making her options worth millions. And she just bet her entire career on it.