At face value the BOD wants to sell Resapp @11.5c / share and in the process throw all the holders who bought in above that price, which is probably the majority, under the bus. And at the same time deny shareholders the growth in stock value that initially motivated their purchase.
But it could in fact be the case that the BOD after extensive consultation and lengthy consideration, unequivocally expect shareholders to vote NO!
If it is in fact the later then it is a low risk, potentially high reward strategy.
From which Resapp and its shareholders can expect:
research & development licence between Resapp and Pfizer
$3M cash
international recognition and validation for Resapp courtesy of Pfizer
an open door to FDA regulatory approval, amongst others
worldwide acceptance and usage of Resapp diagnostic tools not just for covid but also pneumonia, asthma, bronchiolitis and chronic obstructive pulmonary disease; as well as those still to be developed
The list goes on and on. And I expect enormous potential for my holdings to grow significantly over the coming years if Resapp builds a close relationship with Pfizer; or a company of similar standing.
From the outside we cannot know for sure if this is a clever strategic move by the BOD, but it very well may be. Plus it is a worthwhile thought experiment.
