I was just looking through the 10-K. As I understand it, the company would owe royalties (and milestones of $50k) of 2% each to Dr. Platt, Wayne State, & the Barbara Karmanos Cancer Center. Not too bad, but the company clearly has to finance again, and soon. Over 42 million shares out with less than 5 million in cash. This situation may be helped some by the potential repayment of a loan to the former EVP, a Mr. Salter, which should approach 3 million with interest. It's due in June of next year. Let's hope Mr. Salter is quite solvent. The loan was to buy Safe Sciences stock for north of $10, so I wonder. Great move by the company if it can collect. Former CEO Dr. Platt had been selling relentlessly at prices mostly under a buck until early September, but he still holds a million shares.
I think this one will come back some, say, to the low $1 range, until they get hold of more financing. How much the stock takes off (it began a big run when it got a few million this August) will, of course, depend on the terms. The major shareholder outside of insiders is Brittania Holdings, which does business out of Guernsey Isle (something of a red flag, that location; betcha they hold warrants and short the stock or something pump and dumpish). I can't figure out if Elan is still holding shares or not. I don't see any obvious promoters aside from the hyping newsletter folks referenced by Betone. I'd like to see the terms or their compensation, if any.
Interesting, keeping my eye on this one. Thanks for starting the thread.
Cheers, Tuck |
