In reference to Cbio's accouncement on the 10th June in relation to the Performance Options, Cbio inadvertently forgot to mention a number of very important facts:
i) Stephen Jones the Executive Chairman earned $399,000 in the 2009 year from consulting fees received from Cbio. He also had 1,000,000 + options (at a strike price of $1.00) before he sold the majority to the Deputy Chairman. He current has 300,000 of those options remaining. ii) James Greig total remuneration package in 2009 was $527,000 and has 1,000,000 options at a strike price of $1.00 iii) Jason Yates total remuneration package in 2009 was $627,884 and has 2,000,000 options at a strike price of $1.00
Not bad salary packages for a small capped drug development company that has no "real" revenue streams except from capital raising from shareholders and grant monies from the Federal Government
Other Comments I would like to mention are:
The non executive directors have all been granted options (all with a strike price of $1.00) at the time of their appointment. I remember Jones telling me once that the directors he was attracting to the board of Cbio were not costing a great deal of cash as he was offering them options instead of directors fees which at the time those directors accepted!!!!. When a deal is done say with an upfront payment of $2.50 per share plus milestone payments plus double digit royalties all those directors need to do is raise the required funds needed to convert those options to shares (that would not be hard with a signed licencing agreement from a International Pharma behind their application to raise the required funds). Then they would be multi millionaires!!!!!!.So indirectly they would have been paid well and truely for what they are worth.
As for transparency the Executive Chairman has a lot to answer for. Why did he insist that the last Director to resign,resign.Maybe because Jones knew that that Director would have objected very strongly to the performance options and would have not allowed it to get this far. Jones is an arrogant ar.h.le (pardon my French) and all he cares about is himself and all his cronies. To want an additional 2,000,000 performance options for himself and the CEO,CFO (1,500,000) and the Company Secretary (500,000)(with no strike price) is beyond belief. I personally feel there could be so type of insider trading in relation to the proposal of the performance options why now and why so quick?????? maybe they have a term sheet on the table and Jones is trying to cash in big time.
Both Ben Graham and Jason Yates have made comments about they do not care about the price "older" shareholders may have paid for their shares or what the market price is currently at (this is a Jones arrogant statement for sure). I note with interest both Graham and Yates have not put in single cent of their own money into Cbio shares. If they had invested at $3.00 or $5.00 their story would be completely different.
I received a letter from Lee Mickelburough in yesterday's mail. For those who received it please read it carefully and vote NO (against)the issue of Performance Rights to Jones and his cronies
CBZ Price at posting:
61.3¢ Sentiment: Hold Disclosure: Held
