April 21, 2013

$PVCT Files Pre-14A (Proxy Statement)

Management filed the company's pre-Form (Schedule) 14A (proxy statement) on Friday.

Regarding proposal number 2, management is seeking shareholder approval for "...an amendment to our Restated Articles of Incorporation...to increase the number of shares of common stock...that we are authorized to issue from 200,000,000 to 250,000,000 shares."

The company, on a fully diluted basis -- common stock + preferred stock + common stock options + common stock warrants -- is nearing its threshold of authorized shares. The proxy counts this figure as about 188 million (see page 29).

I support Proposal No. 2 because it enables management to have sufficient shares of which to use, in part, to raise money so as maintain accounting firm BDO's going concern opinion in the event expected milestones (i.e., SPA, BTD-AA) do not raise the share price sufficiently to utilize the shelf in a less than punitive manner or upfront/cash payments (i.e., China, India, Japan, global, PH-10) from contemplated license deals do not materialize in a suitably soon time frame (i.e., when or should the remaining 12 million units run out or be insufficient).

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