Ok came across more info and possibilities. Read the following two links if interested. Apparently they have the right and ability to commit to a reverse stock split--that’s terrible for the stock at this point, at least in my experience, but the good news is it most likely will not happen soon, if at all...and Ill get to why
http://finance.google.com/group/google.finance.700545/browse_thread/thread/44dd520ee4b2baaa?hl=en[/URL]
http://ir.sunesis.com/secfiling.cfm?...93125-10-83825
these two links demonstrate that SNSS, in order to satisfy NASDAQ listing requirements of maintaining a price above 1.00 for 10 consecutive day, can issue a reverse stock split. It seems just protocol though, almost a last chance option--voting takes place 6-2 when they also have a shareholders meeting...but they have until september 27 to bring their standing into compliance--if you recall, current funding will carry them at least through the month of sept 2010....I would hope they have enough faith in their company that they believe the price by then will take care of itself and a stock split will not be necessary---the current stock split option, approved in 2009, seems to expire on 6-18--this vote will give the company permission to issue a reverse split if they so choose, before the next expiration date which would be some time down the road, probably june 2011--it is NOT a vote to implement a split--just a vote to gain permission
Meeting (vote) June 2 2010:
"ratio ranging from one-for-three (1:3) to one-for-fifteen (1:15). A
similar amendment to effect a reverse stock split at an exchange ratio
ranging from one-for-five (1:5) to one-for-fifteen (1:15) was
previously approved at the 2009 Annual Meeting of Stockholders;
however, the Board has not yet elected to effect the reverse stock
split and its authorization to do so expires as of June 18, 2010. You
are now being asked to vote again upon an amendment to our amended and
restated certificate of incorporation. Should we receive the required
stockholder approval, the Board will have the sole authority to elect,
at any time prior to the first anniversary of the Annual Meeting: "
Note that a reverse stock split was approved in 2009 but NEVER used for all these months--so that’s a good sign I think--but it brings up another small dilemma...if they dilute shares to raise money would they then do a reverse split? this would be a double whammy crusher for shareholders...is that possible, legal, ethical even? selling 50 million shares and then eliminating those shares with a reverse split? if so, those are two bits of bad news that could make this stock nasty if you get caught on it--at the same time, a reverse split probably wont be necessary in the short term if phase 2 moves the stock price--but again, that brings up the question--soon to be announced partnership? or dilution? one thing is for sure--if the stock moves well over $1...they may hope it holds for 10 days over that price in order to not have to use a reverse split...so once the stock moves over $1...don’t worry about a reverse split until it comes below $1, and only if it does so prior to exceeding $1 for 10 consecutive days---it would be absolutely pointless to reverse then in my opinion--reverses, as they claim, do not gain the attention of institutional buying all the time
just came to me after reading an SNSS thread I provided--the company will NOT reverse split prior to june 7 and ASCO presentation...because they already have the right to do so at any time until june 18...if they planned on doing this, they wouldn’t be voting now to extend that option for another year, following the expiration of the previous amendment to be able to conduct a reverse split...so if a reverse was in the works, this vote would be completely irrelevant...besides,,,they have until late sept to come into compliance...they would really be jumping the gun by reversing now, with all that time ahead of them and all the potential good news to move the stock--its too risky for them and us, so why do it now when you don’t have to? that’s another argument...you wouldn’t jump off a bridge to save your life if you knew the bridge wasn’t going to crumble for another 4 months right??? you would wait to see if you could come up with other less risky options
so yes, potential good news throughout the year--remember fast track potential, phase 3 announcement, partnership--see how crucial partnership is? ive been saying it all along--it will eliminate reversing, most likely eliminate dilution, eliminate tons of uncertainty--and give this company smooth sailing until phase 3 completion or the results of the trials are known...THEN and ONLY THEN can this stock stand on what it should, its phase 2 results and its phase 3 potential...if you hear ANYTHING positive about partnership OR takeover---get on this stock without much of a second thought
bottom line, seems the distant uncertainties may again in the future weigh the stock down if not cleared up soon after phase 2, but setting yourself up for phase 2 results, if you think it will be positive and move the stock a decent %, is still a good move--the risk is elevated after the results are priced in because there is little telling what the company has in mind afterwards--hoping for a satisfying jump now til june, so I can mostly jump out and hold my remaining position with a few thousand shares
