A look at how Generex acquires Olaregen, Veneto an
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Posted On: 02/21/2019 12:21:16 AM
A look at how Generex acquires Olaregen, Veneto and HDS.
“The major news for Generex in 2018 was the issuance of a 20:1 share dividend in November, in which Generex shareholders received 20 new shares of Generex Biotechnology for every share held on the payment date. This 20:1 dividend rewarded loyal Generex shareholders, not only with their additional personal shares, but also in the financial status of the company. Four major Generex shareholders, including the CEO Joseph Moscato, Director Lawrence Salvo, the previous owner of HDS, and an investment fund contributed their dividend shares to the benefit of the company, creating a “Pool” of shares that can be used to achieve the company’s strategic objectives. Generex has recently used the Pool Shares to pay for acquisition of the Veneto Group assets at the up-market price of $2.50 per share. These shares were also used in a share exchange with the Olaregen private investors to acquire an additional 9% of the company (on top of the already 51% already owned by Generex) at the up-market price of $2.50 per share. Generex in in negotiations with the Olaregen shareholders to acquire the remaining 40% of the company and achieve 100% ownership of the company.”
Olaregen- So Generex used cash to give an upfront payment of $400 thou. Generex originally acquired 51% of Olaregen but has upped that to 60% using pooled shares owned by Joe and 3 other principles- so no cost or dilution to Gnbt shareholders. Bad math on my part here possibly, but that’s a $1,080,000 gift from the Gnbt insiders to all shareholders via the pool? Tc you’re a financial expert so I’ll be lazy and please fix that math. Generex is upping their ownership to 100%, but I believe that’s currently under discussion.
I don’t know of any other CEO’s or insiders that have done anything similar and there’s other examples of the same for Generex. For example, Generex used the Pool Shares to pay for acquisition of the Veneto Group assets at the up-market price of $2.50 per share. Yes, again at the up-market price of $2.50 per share. Look at it this way for Olaregen and Veneto, they valued Generex at $2.50 for those deals so these insiders certainly don’t feel current market trends agree with their thought process.
And recall that the main investor of HDS also made a deal with Generex giving them 100% ownership:
“On December 1, the Company also issued to Mr. Berkman, pursuant to the requirements of the January 2017 Acquisition Agreement, a Warrant exercisable for 15,000,000 shares of common stock; the Warrant is exercisable until December 1, 2019 at an exercise price of $2.50 per share. The Warrant contains a provision prohibiting the exercise of the Warrant to the extent that, after exercise, Mr. Berkman would own more than 9.99% of the Company’s Common Stock.”
Again at $2.50 a share. For Mr. Berkman to exercise and sell those warrants needs much higher than $2.50. And he invested millions and millions of dollars. And he put something like $13 million into HDS because he believes and is a big time investor. Plus he gave back to Gnbt shareholders his dividends to use in the Pool of Shares.
$2.50 and on the Generex end pooled shares costing retailers nothing in company cash or dilution. The shares were there already, just previously owned by Gnbt insider shareholders that gifted their dividends. And the management insiders aren’t collecting cash salaries. Neither is the BOD. And no form 4s showing any sales of any stock to gain any cash to pay their bills mortgages or anything.
That’s all factual. Unless my 9% was off, but probably only a little ie meaningless amount of an error. Veneto does get noted ownership of ngio shares, and other items via shares, but they should considering their bringing already $100 mill a year revenue before entering new states as Fuse brings around $30 mill. Consider that Glucose Rapidspray was once our near term revenue hope!
I lost myself on my overall point, but I think we are worrying too much on a small capital raise because it’s not like a little food to get a donkey to move a few feet. Get to 27 states mso and pharmacy wise to build a multihundreds of millions in revenue company going until an uplist happens, and at that point who gives a jackass of only about $2 mil with a 30% discount on anything? Joe and his insiders already personally gauranteed more than that themselves in their personal shares.
Jmho
“The major news for Generex in 2018 was the issuance of a 20:1 share dividend in November, in which Generex shareholders received 20 new shares of Generex Biotechnology for every share held on the payment date. This 20:1 dividend rewarded loyal Generex shareholders, not only with their additional personal shares, but also in the financial status of the company. Four major Generex shareholders, including the CEO Joseph Moscato, Director Lawrence Salvo, the previous owner of HDS, and an investment fund contributed their dividend shares to the benefit of the company, creating a “Pool” of shares that can be used to achieve the company’s strategic objectives. Generex has recently used the Pool Shares to pay for acquisition of the Veneto Group assets at the up-market price of $2.50 per share. These shares were also used in a share exchange with the Olaregen private investors to acquire an additional 9% of the company (on top of the already 51% already owned by Generex) at the up-market price of $2.50 per share. Generex in in negotiations with the Olaregen shareholders to acquire the remaining 40% of the company and achieve 100% ownership of the company.”
Olaregen- So Generex used cash to give an upfront payment of $400 thou. Generex originally acquired 51% of Olaregen but has upped that to 60% using pooled shares owned by Joe and 3 other principles- so no cost or dilution to Gnbt shareholders. Bad math on my part here possibly, but that’s a $1,080,000 gift from the Gnbt insiders to all shareholders via the pool? Tc you’re a financial expert so I’ll be lazy and please fix that math. Generex is upping their ownership to 100%, but I believe that’s currently under discussion.
I don’t know of any other CEO’s or insiders that have done anything similar and there’s other examples of the same for Generex. For example, Generex used the Pool Shares to pay for acquisition of the Veneto Group assets at the up-market price of $2.50 per share. Yes, again at the up-market price of $2.50 per share. Look at it this way for Olaregen and Veneto, they valued Generex at $2.50 for those deals so these insiders certainly don’t feel current market trends agree with their thought process.
And recall that the main investor of HDS also made a deal with Generex giving them 100% ownership:
“On December 1, the Company also issued to Mr. Berkman, pursuant to the requirements of the January 2017 Acquisition Agreement, a Warrant exercisable for 15,000,000 shares of common stock; the Warrant is exercisable until December 1, 2019 at an exercise price of $2.50 per share. The Warrant contains a provision prohibiting the exercise of the Warrant to the extent that, after exercise, Mr. Berkman would own more than 9.99% of the Company’s Common Stock.”
Again at $2.50 a share. For Mr. Berkman to exercise and sell those warrants needs much higher than $2.50. And he invested millions and millions of dollars. And he put something like $13 million into HDS because he believes and is a big time investor. Plus he gave back to Gnbt shareholders his dividends to use in the Pool of Shares.
$2.50 and on the Generex end pooled shares costing retailers nothing in company cash or dilution. The shares were there already, just previously owned by Gnbt insider shareholders that gifted their dividends. And the management insiders aren’t collecting cash salaries. Neither is the BOD. And no form 4s showing any sales of any stock to gain any cash to pay their bills mortgages or anything.
That’s all factual. Unless my 9% was off, but probably only a little ie meaningless amount of an error. Veneto does get noted ownership of ngio shares, and other items via shares, but they should considering their bringing already $100 mill a year revenue before entering new states as Fuse brings around $30 mill. Consider that Glucose Rapidspray was once our near term revenue hope!
I lost myself on my overall point, but I think we are worrying too much on a small capital raise because it’s not like a little food to get a donkey to move a few feet. Get to 27 states mso and pharmacy wise to build a multihundreds of millions in revenue company going until an uplist happens, and at that point who gives a jackass of only about $2 mil with a 30% discount on anything? Joe and his insiders already personally gauranteed more than that themselves in their personal shares.
Jmho
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