First thing this morning, I saw there was an 8K released making us aware that Shmuel De-Saban has resigned as CFO of OWCP. Mordechai, who is a CPA and accountant by education and training, will be the Interim CFO until he makes an announcement of Mr. De-Saban’s replacement on or around July 1st.
Like after most 8Ks, I start receiving various messages asking for my opinion on this. So, this is my opportunity to type out another disclaimer — while I will provide my opinion (and hope) on the matter, I absolutely do not want it to be your reason for Buying, Holding, or Selling. If you have a good or bad feeling – it’s up to you to act on it.
That being said, I do NOT have a bad feeling about this resignation. First, it’s a generic response. Sure, maybe he’s truly going on to pursue other business options — but that doesn’t mean he came to that conclusion all on his own. I’m still hoping we’ll hear more about a future Joint Venture / Partnership with a bigger, well known company. Then again, maybe mediq was the only company they were in negotiations with after they had worldwide interest. I just feel as though mediq wasn’t the only company they were in talks with — but we’ll see.
Just because many fixate on this idea that TEVA has or will strike a deal with OWCP, let’s use them as an example. If TEVA, a much larger and proven company, were to merge or form a joint venture with OWCP, a much smaller company, I expect them to want to appoint their own management in certain roles.
The fact that Mordechai felt comfortable enough to say he will appoint a new CFO on or around July 1st tells me something has been brewing since before Shmuel sent in his letter. Hell, when I put a job opening out for a Receptionist, it takes more than 2 weeks to just collect resumes. Why would I expect a Medical Cannabis Research company valued around $85 million (current market cap) to hire a CFO within 2 weeks? Again, it’s my opinion that this resignation was all strategic and it’ll all make sense on or around July 1st.
Final thought — In my opinion, the person we’d want a resignation from the least is Dr. Yehuda Baruch.