Questions For ContraVir’s Management Ahead Of Monday’s Investor Conference

ContraVir Pharmaceuticals wants to raise up to $20 million through an S-1 equity offering.

Many investors, including those in the Activist Group, refuse to partake in the ongoing S-1 equity offering unless the management answers critical questions pertaining to the company’s future.

ContraVir’s pipeline has been on a steady roll with plenty of good news coming in, but communication to Investors has remained an issue.

The Company’s management has taken a great leap forward by calling for an Investor Conference on June 25th. This represents a small victory for the ContraVir Activist Group and all ContraVir Investors.

The formation and continued growth of the ContraVir Activist Group, currently representing 8.2% of the float, signaled that there was increasing dissatisfaction with the ContraVir (NASDAQ:CTRV) management team. While the Group has stopped short of forming into an official Insider Activist Group and filing a Schedule 13D, it has been very vocal in its peaceful intentions and its demands.

In an open letter to the ContraVir management team, the Group outlined its request for more effective communication and a show of confidence from the management team through insider stock purchases. While the latter request has yet to be realized due to the ongoing equity raise and stream of positive pipeline advancement news, CEO James Sapirstein has called in a live Investor Conference scheduled for June 25, 2018, to address Investor questions and concerns and to provide an update on the company’s pipeline and financial situation.

ContraVir is currently seeking to raise funds through an S-1 equity offering. However, many current investors have refused to purchase subscription rights because they are already sitting on significant losses, are concerned that the stock price has not yet found a bottom, have many unanswered questions, and feel that they lost confidence and trust in the management team. We believe that Mr. Sapirstein and his team can start to re-establish investor confidence and trust by giving the shareholders a platform to ask questions and address concerns.

The ContraVir Activist Group members have come together to compile a list of questions that they believe will allow both parties to move forward in the right direction and potentially allow for better participation in the S-1 offering.

The following is the list of our questions to the management team for Monday’s Investor Conference:

Financing Questions:

1. Can you explain why there are no partnerships to date and what happened during negotiations with interested parties?
2. Members of the Activist Group have been told by several representatives from the Maxim Group that ContraVir possesses enough cash on its books without the S-1 offering to take us into the year 2020. Yet despite this, we are raising another $20 million. Why?
3. Can you explain your decision on appointing Dr. Henry Chan Lik Yuen and Dr. Jin-Lin Hou to the Scientific Advisory Board?
4. You’ve mentioned in January that it was a great time to buy yet we haven’t seen any insider purchases for a long time. As the price and market cap make new lows, why have we seen a lack of insider purchases?
5. The price of the stock has continued to collapse in recent years yet your annual salary has increased over 37% from $350,000 to $480,000 during that time period. Do you feel that this is fair, and do you believe that a CEO’s salary should be tied to the stock price performance?
6. You’ve mentioned that you intended to tie the reverse stock split with good news yet the only news that came out during that time were two preclinical mouse studies on CRV431’s effects on NASH and HCC. Did you believe that would move the stock price up significantly?
7. How do you intend to reward loyal investors who have been with the company for years and feel shut out due to a lack of communication and disappointed about the stock’s performance?
8. How much do you anticipate trials for CRV431 and TXL to cost?
9. Do you anticipate out-licensing CRV431 for NASH or HCC? If so what do you believe we can get for that?
10. Do you still intend to purchase a third asset or do you intend to partner with another company already working on a Capsid inhibitor? What do you anticipate the costs to be for the purchase of the asset?
11. How long do you think the current cash supply could last until we need to dilute again?
12. Why do you think the stock price has been so dismal and the market cap valued so low?

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