Hemispherx Biopharma (HEB – $2.03) announced on Wednesday it cancelled its adjourned stockholders’ meeting. The reason was very simple, the Company obtained insufficient votes to pass proposal no. 3. With this proposal being the sole purpose of the adjourned stockholders’ meeting, there was no need to hold the meeting. In proposal 3, shareholders were asked if HEB could increase the number of authorized shares of common stock from 200,000,000 to 350,000,000.
We don’t think this is a big issue, as the Company indicated they didn’t plan to use the shares on a short term basis anyway, which is good, as they have sufficient money in the bank (over $40 million on June 30, 2009).
We also feel management shouldn’t concentrate on increasing the number of authorized shares. They should use all their time and resources on preparing the launch of Ampligen if it’s approved for the treatment of CFS. It doesn’t matter we haven’t heard from the FDA yet, Hemispherx has to be prepared. If the FDA approves Ampligen tomorrow, the Company immediately has to be ready to take the next step. Some of the most important steps are:
- Have all agreements been signed with insurance carriers?
- Is the production facility ready to start producing Ampligen in large quantities?
- Have the necessary agreements been signed to start distributing Ampligen on a large scale to needing patients?
So far we haven’t heard anything concrete about those items from the Company. These items should be top priority for management at this moment. The time is now and the money is available, so no more delays. And, by the way, if HEB performs well over the next 12 to 24 months, shareholders will be more than happy to increase the number of authorized shares at that moment.