November 28, 2011

A Dissenting Opinion

In January 2011, Provectus raised about $5 million from an investor syndicate that included AQR and AST. When the company put various matters to a shareholder vote at the annual meeting in June, from what I could find through SEC filings, AQR and AST voted against proposal 4 to essentially approve executive compensation.



While I voted for this proposal, which ultimately passed, it was interesting and in my view notable that AQR and AST did not.

I also found it notable that they withheld their votes for the slate of directors and, understandably, voted in favor of increased the authorized number of common shares. Monetization is monetization, eh? Increasing the number of these shares provides management with the flexibility to facilitate an equity investment in the company by big pharma (utilizing one of the two shelf filings Provectus previously has made).

I recently asked management for their perspective on the topic. When I receive a response, I will update this post.

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