May 16, 2012

Jan Koe: A Tactical Move, With Strategic Motivations

I've received several e-mails and blog comments regarding the announcement yesterday of Jan Koe's addition to Provectus' board of directors.
"Mr. Koe, age 61, has a 30-year track record of success in consulting, asset management, real estate and public company governance, and has represented major insurance firms, national retailers and Fortune 500 companies. He is President of GoStar, which is the manager of Real Solutions Opportunity Fund 2005-I and Real Solutions Fund Management LLC and Real Solutions Investment LLC. He is also Principal of Method K Partners, Inc., a commercial real estate firm, which he founded in 1988. He has served on the Board of Directors of ONE Bio, Corp. where he was Chair of the Compensation Committee and a member of the Financial Audit Committee. He holds a degree in Business Administration and Psychology from Luther College."
Mr. Koe's professional history (based on a more comprehensive search of the Web) paints the picture of an entrepreneurial individual who has a good amount of experience and enjoyed success as a principal of and investor in a number of businesses spanning several industry sectors. I think his corporate governance experience is a strength.

The key takeaway is that Koe's addition, which enabled the formation an independent board, is a strategically-motivated tactical move. Simply put, it facilitates the listing of the stock on the NASDAQ in advance of a potential myriad of expected regulatory, business and clinical news that will have greater impact on the share price if the stock is listed on a major exchange rather than over-the-counter.

At a closing price today of $0.865, the stock is well below the $2 per share threshold. One key piece of news (e.g., the SPA, a dermatology term sheet, etc.) should do the trick, thrusting the share price across this threshold.

Just some speculation on my part...

Board member Dr. Kelly McMasters has much more medical and clinical trial experience. Board member Al Smith IV has much more name recognition. The company could have added a much higher profile name than Jan Koe (and, for that matter, Al Smith) in due course. These are not rash actions, but deliberate and deliberated decisions.

Why form an independent board, now?

As I wrote a few days ago, the pipeline of catalysts is backing up, and the clock is ticking on when these catalysts will catalyze the share price: the MM Phase 3 SPA, a dermatology term sheet, more Moffitt immunology data, the Munich MM Phase 2 data, accelerated approval for MM, an addition to the corporate advisory board, and an HCC Phase 2/3 trial suitable for an SPA.

Maybe something or some things (i.e., catalysts) are inbound.

No comments:

Post a Comment