According to the proxy for the purpose of the general meeting, the issuance of the stock is addressed as follows:
"As of the close of business on March 20, 2020, of our 160,000,000 authorized shares of common stock, there were 116,211,355 shares of common stock issued and outstanding. In addition to the 116,211,355 shares of common stock outstanding on March 20, 2020, there were 24,420,157 shares reserved for issuance pursuant to that certain stock purchase agreement we entered into on February 26, 2020 with Biogen MA, Inc. and the remainder of our authorized shares of common stock as of the close of business on March 20, 2020 have all been reserved for issuance under our various equity compensation plans, including the 2018 Plan. Accordingly, at present, there are no available unissued and unreserved authorized shares of our common stock, including to give effect to the proposed Share Reserve Amendment with respect to the Amended 2018 Plan that is part of Proposal No. 3. In this regard, the effectiveness of the Share Reserve Amendment and the ISO Limit Amendment that are part of Proposal No. 3 are contingent upon approval of this Proposal No. 4 by our stockholders."
As it has been inaccurately stated elsewhere, the Biogen deal is not based on additional issuance of shares through this proposal. The change to the incentive plan from 2018 to 2020, is argued to have 9.9M shares addition, and that is the sole reason. Although a common practice, it is rather insensitive to require doubling of the shares. So having $600M, including the burn for the first quarter, literally is not enough to carry the company, even though $275M from Pfizer is being heralded as being on a cusp, and needing time. The $6.3B is not also considered as a potential income?
Why this meeting not one in 2021 or 2022?
Why not ask for 20M shares? The fiscal discipline has been mediocre, and it will continue having approved 160M shares. The incentive plan simply asks for 50% more shares to be awarded yearly. Why?
I would not mind if they were buying those optioned shares. Macrae has 1M in options but owns zero. It is ATM, nothing else. I am going to vote no. This does not threaten the Biogen deal. And perhaps if it is because Biogen will not pay $9.21 per share and the management is ok to change the volume of shares to a larger amount than 24M.