Hemogenyx Pharmaceuticals PLC (LSE:HEMO, OTC:HOPHF) CEO Dr.Vladislav Sandler and non-executive director Peter Redmond talked with Proactive about key developments, including its EGM. Redmond explained the reasoning behind share consolidation, aimed at attracting institutional investors and enhancing the company’s capital structure as it moves closer to clinical trials for its HEMO-CAR-T product.
Proactive: Vlad, Peter, very good to speak with you today. You announced last Friday an EGM to seek approval for two quite major changes. What are the reasons for these changes?
Peter Redmond: The reasons are twofold. First, we’ve relied mostly on private client support to date, but we’ve reached a pivotal stage in our development. While we can move forward now, we’ll need additional capital. Over the past year, we’ve spoken to UK institutions, and they had two objections: our stage of development and our penny stock status. International investors, though interested in our clinical trials, also avoid penny stocks. To address this, we’re consolidating shares to establish a more serious share price.
Additionally, despite good news in recent months, our share price hasn’t reacted as we’d hoped. We don’t want to raise funds at a penny per share or be constrained by that value. Adjusting our par value gives us flexibility. But I want to emphasize, we don’t intend to raise funds below a penny unless absolutely necessary, which isn’t our current position.
Proactive: Peter, why make these changes now?
Peter Redmond: We’re in discussions with larger investors. While we’re not ready to announce investments, they need to see a higher share price to take us seriously. With clinical trials approaching, now feels like the right time to consolidate shares.
Proactive: Vlad, you’ve made significant progress toward clinical trials for HEMO-CAR-T. What’s the importance of this announcement?
Vladislav Sandler: To open clinical trials, we must meet hospital requirements. These include approval from a scientific review committee and an internal review board (IRB). We’ve passed the scientific review and addressed all their questions. The IRB, comprising hospital and community members, ensures patient safety. After meeting their requirements, we received an official IRB approval letter, which is almost as significant as FDA approval.
Last Friday, we completed a site initiation visit, which involves Hemogenyx, our CRO, and the hospital team. Now, we’re awaiting a letter to officially open the clinical trials. Once received, we’ll begin patient recruitment. This step is crucial, and the cancer center we’re working with is eager to start because of high patient demand for this treatment.
Proactive: Can you share a timeline for the trials?
Vladislav Sandler: I can’t provide a precise timeline, but it’s imminent. Recruitment depends on finding patients who both need the treatment and can demonstrate the product’s efficacy.
Proactive: Any further comments?
Peter Redmond: I think shareholders should know we’ve reached a vital milestone. While patient recruitment is critical, the reorganization is essential to access quality funds to advance trials and other projects.
Vladislav Sandler: I agree. Targeting institutional investors and large pharmaceutical companies is key. For them, share price matters. Consolidating ensures we’re in the best position to secure support.