7:32AM Generex Biotech announces installation; also responds to negative Smart Money article
GNBT) 3.72 : Co announces the successful completion of the delivery and installation of a turnkey Generex Oral-lyn filling operation at the facilities of PharmaBrand, S.A. in Ecuador... Co also responds to a Smart Money article (see 7:21 comment), which it says includes factual inaccuracies. The article refers to the co's "financial struggles," but as on Mar 24, the co had cash/inv of $41 mln, the strongest financial condition in its history. The article states that "for the past year, Generex hasn't been able to pay off its debt." That statement is false. The article states that Generex failed to repay two promissory notes and that "[a]s a result the noteholders (sic) were allowed to convert the debt" into shares of common stock. That statement is false. Had the author reviewed the terms of the debt, he would have seen that the conversion entitlements were included in the promissory notes from the outset. The article also fails to mention that all of the other small biotech cos in the article incurred substantial losses for similar reasons. The author states that it's "a stock that faces the threat of delisting." That statement is false. On Nov 15, the co announced that it had received written confirmation from the Nasdaq that the co had achieved compliance. Co says "We do not seek to discourage critical review; however, we consider that such review should be based on accurate facts...The Company made its executives available for the author to speak with. Unfortunately, whatever his underlying motives were, he chose to misstate and distort the facts thereby portraying the Company in an unjustifiably negative manner." |
