Leo's response to Big Jeff 'reason for bailing o
Post# of 72447
Posted On: 12/13/2013 12:55:25 AM
Leo's response to Big Jeff 'reason for bailing on CTIX':
1. Accounting issues (reported on the recent S3) why should there be accounting issues when the company is run by a CPA?
This relates to internal controls. With only myself and Dr Menon running the company the auditors wanted additional people reviewing entries. We believe that has now been accomplished.
2. "Going concern" label given to CTIX by auditors. If you read the S3 again, lots of bolded warnings and more warning than would seem typical.
We have a lot of trials scheduled and we have not yet drawn down on the money. Once we draw the money the going concern should no longer apply unless we change our budget.
3. More dilution with new Aspire deal for $20 million plus the "payoff" to Polymedix attorney. Potential for R/S heightened in the near term.
More dilution will happen with the Aspire deal however the money will be used to advance trials. Shares were already issued in September to the Polymedix trustee. R/S I am opposed to.
4. Sidetrack of Prurisol POC trial and potential "black box" label. Polymedix assets questionable.
Prurisol trials should start soon. I have limited concerned about the black box warning as I expect most of the competing drugs to have black box warnings as well. The black box is to exclude HLA-B*5701 patients and will require patients to take a a lab test before taking Prurisol and they must test negative for HLA-B*5701
5. Absolutely no institutional investors. No independent BOD. Uplisting won't happen anytime soon. Therefore, lack of appeal to more investors and institutions.
Correct. We need to uplist. CTIX needs a share price staying over $2 share then the other requirements can be met. The credit line allows us the ability to attain a positive stockholders equity which also a requirement.
6. No significant update on p21 since April. No update on Kevetrin. Update probably not coming until Q2 2014.
Updates will be occurring on all CTIX events
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