Hemostemix (HEM.V) plunges 44% as dissident group nears board takeover

eyeroll

Biotech flailer Hemostemix (HEM.V) took a punch to its distended gut today as a sell-off of the embattled stock cut the share price of the company by nearly half, at the time of writing.

Down 44% on the day, and nearly 70% since April, the company is in the midst of a shareholder proxy war, with a ‘concerned group’ pointing out that the company is functionally insolvent, based on recently released Q2 numbers, that the Hemostemix phase 2 trial has been halted, with the strategic partner demanding $2 million to continue work, and that an insider loan arrangement the board is considering would cover only $1m of debt, while putting the company’s entire asset base up against that loan. There’s also ire that the company’s CEO and CFO are consultants, with the CEO having only held $100 in stock when he started his deal.

The dissidents claim around 40% of shareholders have voted with them so far.

If what the concerned shareholders claim is true, it would appear Hemostemix’s board are propping the door open just wide enough to get their hands on the only thing of value left in the company when it officially runs out of juice.

This would not be the first time a company with value in IP had loaded its board up with a sweetheart deal to carry that IP forward under another name, while the common shareholders received nothing. Crailar pulled the same bullshit routine last year when it ran out of steam, flinging the tech to the side, claiming nobody was offering enough for it, then slipping it to insiders for pennies so they could start a company with almost the same name, but none of the previously beaten down investors.

‘Crailar Technologies? Oh no, this is Crailar International. No relation, I assure you.’

Hemostemix, reportedly, needs about $5 million just to pay off its commitments, and was looking to raise that a few months back, at $0.40 a share. Today’s price of $0.155 will make that raise hard to complete.

So too will a few more shareholders filling in their blue forms…

— Chris Parry

Leave a Reply

Be the First to Comment!

Notify of
avatar

wpDiscuz