Andre,
Thanks for responding to my comments. There's a lot to tell you. I would first like to respond to the GNRX deal. When we were finishing the restructuring this past spring, GNRX approached our investment banker with a proposal to merge. They liked our technology and they also liked the fact we were public. A merger would bring them public quickly and this would have benefited their private shareholders. The people closely associated with GNRX got excited and started purchasing stock in RCG, which coincided with the finalizing of our debt restructuring. The stock rallied nearly to 60 cents. They began to sense that we weren't as receptive to their original offer as they had hoped and we ultimately rejected their offer. During this time, they began to sell the stock they purchased and this selling, coupled with normal profit taking from tripling the stock in a month's time is what brought the stock down. Then once it was down, investor's have been assuming that something is wrong again and the buying therefore stopped. We are in a typical cycle of where the stock price is dictacting investor sentiment instead of company fundamentals. This is not accurate. Since our financing in May, RCG has reinitiated it's research projects as planned. The scientific data coming in on our stroke project is excellent. We have been working closely with a large international pharmaceutical company on this project and hope to have a significant partnering agreement soon. This would add a lot of credibility to our drug platform and bring in a lot of value for the shareholders. On the merger front, we are in the final stages of negotiations on another private company merger, MUCH larger than Generex. This would increase value in a big way, very quickly. Remember, our largest shareholder is our investment banker. He is only going to do a deal if it makes sense and brings value to HIS investment, which is also your investment.
Don't lose heart. The stock is very, very undervalued in my opinion. Feel free to call me at the office as well - 800-558-8846 or 206-778-5260. |
