Business Context and Reporting Period
This Form 6-K filing by Akari Therapeutics Plc, dated January 26, 2018, reports on corporate governance changes effective January 23, 2018. The Company appointed two new Class A directors to its Board of Directors.
Key Financial Metrics
The filing text does not provide a clear value for revenue, profit, cash flow, margins, debt, or liquidity. This report focuses exclusively on board appointments and associated compensation.
Material Changes
The primary material change is the expansion of the Board of Directors with the addition of:
- Michael Grissinger: Formerly Vice President at Johnson & Johnson with over 20 years of experience in M&A, business development, and corporate development.
- Dr. Peter Feldschreiber: A physician and barrister with over 20 years of experience in the pharmaceutical industry and healthcare law, including roles at Proctor and Gamble and U.K. government advisory bodies.
Compensation and Governance Details
In connection with their appointments, the new directors received the following compensation packages:
- Cash Fees: $38,192 per year for each director.
- Stock Options: An initial grant of options to purchase 1,300,000 ordinary shares (equivalent to 13,000 ADSs) per director.
- Exercise Price: $0.0347 per share ($3.47 per ADS).
- Vesting Schedule: Ratably over four years in four equal installments, beginning one year after the grant date.
- Consulting Agreement: The Company intends to retain Mr. Grissinger as a consultant with fees up to $75,000 per annum.
Investor Verification Checklist
- Verify the total number of outstanding shares and the dilution impact of the 2.6 million new options granted.
- Confirm the specific terms of the consulting agreement with Mr. Grissinger, as the filing states the Company "intends" to retain him.
- Review the Company's cash position to ensure it can support the new annual cash compensation obligations ($76,384 for board fees plus up to $75,000 for consulting).
- Assess the strategic fit of the new directors' backgrounds (M&A and regulatory law) relative to the Company's current development pipeline.