Hi jonzo. Interesting perspectives. Here are my thoughts.

jonzo – “If the insiders want to bring in someone who can cut a quick deal and sell the company for $4 (or whatever), …”

In my post regarding bringing in a competent CEO I certainly was not thinking of a quick flip artist particularly not at $4.00. Don himself said the stock should be trading at $5.00 with the FDA priority drug status. But in my opinion it is trading instead at $.45 because of Don’s reputation. He is not trusted because he does not deliver on promises and I’m done with the black box (Don is magically away doing deals, etc) approach because some day he must meet at least one promise.

I was not being flippant in my post.

I bought in at about $7.00 and my expectations are still far, far, far beyond $7.00.

Based on my experience I would see the process as follows;

1. Don and the BOD meet to establish a CEO search committee (SC).
2. They (SC) would develop a job description and goals to be approved by Don.
3. Hire a search firm with a biotech-financing specialty.
4. The SC would vet all candidates brought forward.
5. Candidates would be expected as part of their application to have conducted a thorough business review, developed a perspective on the industry and reasonable expectations for RVX. They would also present a preliminary strategy without the benefit of inside knowledge but with the benefit of years of experience in biotech financing and other skills.
6. The SC would recommend the top 3 to 5 candidates for review by the BOD.
7. Finally candidates would be interviewed by the management team and all senior scientists as well as staff. Their opinions would then be presented to the BOD before final selection. In order for the new CEO to be successful it is imperative the she/he fits within the RVX corporate culture. This CEO will probably be bringing many new people and they better fit the culture.

My expectation will be to find a world-class leader, with world-class connections, knowledge and drive and the confidence to address all stakeholders including retail shareholder with confidence and honesty.

After a new CEO is hired there would be a process to complete a strategic plan with measurable objectives. Then the CEO gets on with the task of executing the plan.

jonzo – “Don said he speaks to Hepa near daily - they know what's going on. Insiders think long term.”

This concerns me deeply. In most corporations once the strategic plan and objectives are established the CEO has the power to execute and only goes to the broad for advice as desired or in the event of significant changes or decisions requiring capital, etc.

The fact that Don is talking to Hepa daily raises big questions. My hypothesis as to why they talk to Don daily is because their intention to take over RVX at a very low cost, hence they are keeping Don on a very short leash. They have got Don right where they want him.

Hence I feel the Saudi financing attempt and now the attempt in Africa are Don’s last ditch efforts to bring in a significant investor to balance power between Hepa, Eastern and the new party. As well, the new money will pay out the debenture, fund the Covid trial and hopefully BoM2.

That is my hope but I’m usually wrong.    :)

Keep in mind in the corporate world and culture in general when people work together day in and day out for years (RVX) their world often becomes very myopic and they begin to reinforce each others perspectives. This can become a very limiting culture.

Kind regards

Toinv