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You may recall a post I made a while back where I addressed the potential conflict that would exist if Baroni & Co. were being paid with stock/options as opposed to straight cash pay. The conflict being that if they were paid in such a fashion, PTSC would probably be obligated to adopt whatever recommendations they made.

The thought that occurs to me now is that perhaps there was a condition in the contract with Baroni and Co. that IF PTSC adopted all or some portion of the Baroni recommendations, they would receive options as a "bonus". Baroni & Co, (Eclat) were engaged on or about 11/1/09. At that time the PPS was at around .25. Thus, the options would have been priced in at about 60% of market value at that time - a descent "carrot". Not a lot of options though....and therefore not a huge bonus. That is, unless the PPS goes up. And this may be a "first installment" incentive with more to come based on more successful input/action from Eclat.

And there is the (slim) possibility that this is a bonus for some action/business success about which we are not yet aware.

Pure speculation, at the WAG level. But it would serve as a possible (again, WAG) answer to both of your questions.

SGE

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