February 16, 2012

Photogen Technologies

In conducting due diligence on management, I spent a good amount of time understanding their history at Photogen.

A snippet: In November 2002, the company's founding shareholders, three of whom were Craig, Tim and Eric, split off Photogen's therapeutic line of business (which, of course, became Provectus) in exchange for and by canceling their ~20MM+ shares (pre-reverse split; the post-reverse split number was ~5MM+). Photogen stock ranged from $1.00 (December) to $8.38 (January) that year.

In January, for example, their holdings would have been valued at more than $160MM. By November, as finalization of the divorce from Photogen approached, their holdings dropped considerably in value (along with the Nasdaq, where PHGN shares traded; the technology index fell from 2059 in January to 1140 in October before rebounding to 1479 by the end of November, closing the year at 1348). The share price low, in December, was a post-reverse split figure; thus, the pre-reverse split price per share was $0.25.

Data like this, among other information, can assist in understanding and determining Provectus' principals' respective cost basis.

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