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Shirley Family Office Sends Letter to PLx Pharma (PLXP) Board of DirectorsThe Shirley Family Office, which owns more than 3% of PLx Pharma Inc. ("PLXP") common shares, sent a letter to the Board of Directors that criticizes the recently proposed convertible preferred stock financing (the "CPS Financing") as massively dilutive, asks the Board to terminate the CPS Financing and conduct a properly marketed capital raise, and indicates its intent to vote AGAINST the CPS Financing, which requires shareholder approval. This press release features multimedia. View the full release here: https://www.businesswire.com/news/home/20190208005443/en/ The letter asserts that given the size, diluion, discounted conversion strike price, and low implied valuation of the CPS Financing, the Board should have structured the financing as a rights offering open to ALL SHAREHOLDERS on a pro rata basis, rather than allow a single shareholder to massively dilute all the rest. The letter further asserts that the massively dilutive CPS Financing - struck at only $2.60 per share, or a 50% discount to the current share price, and indicating a nominal enterprise valuation of less than $15 million - reflects almost none of the potential upside highlighted in PLXP's public filings. These filings suggest that PLXP has developed a revolutionary drug delivery platform and that management expects its Vazalore aspirin products to become the new standard of care for cardiovascular aspirin treatment, with an estimated total addressable market of $10 billion in the United States alone. Management comments at a recent presentation suggest a planned mid-2020 product launch and a potential company valuation well over $1 billion if market share targets are achieved.
View source version on businesswire.com: https://www.businesswire.com/news/home/20190208005443/en/ |
