I've been offered a job at a biotech startup that's wholly owned by a public company. The public company currently has essentially 0 assets and trades otc pink, but they have an S1 submitted to go full reporting. I think the plan is, if they go full reporting they can issue more securities and bring in some cash to fund the startup's research operations. But the S1 has been in process 8 months now and I'm wondering if it will be approved or not.
The company has made an official offer, but for slightly less salary than what I make now, and no benefits info yet, or stock options description. It's in a more expensive town so I don't want to accept unless there's a potential reward for taking the risk of joining a startup, ie stock options I guess.
Also, I'd really prefer to wait until they raise the funds to do the work they have planned before joining, is it unreasonable for me to ask to see the company finances, or accept contingent on the S1 being approved?
Also, the company has spend 1.2M on a mansion for the founders, presumably purchased with stock since they have no cash according to the last quarterly report, but this screams bad decision making to me. Why would you spend resources on an opulent home when there are people to pay, equipment to buy, and labs to build?
Should I stay strong and insist they show benefits, stock options, and sufficient company funding before accepting anything? I should say I have a good stable job now so don't need this, but it's in a growth industry so I think potentially the opportunity exists for this to be a really good opportunity, assuming these people aren't as sketchy as it seems like they might be. Personally I don't think it's gonna pan out though if they can't get 10-15M in finding to give us 2 years or so operating budget. Biotech research is expensive and slow. Starting out scraping for pennies is a good way to fail, IMO.
Submitted March 04, 2018 at 10:53AM by reelznfeelz http://ift.tt/2CWE7t1
