Pussin, I can understand their strategy, but un
Post# of 15624
I can understand their strategy, but until they own the intellectual property rights to the sublingual tablet, they won't gain value from this strategy. If they announce patent approval, I believe the stock would move up dramatically, then everything could fall into place. If they cannot get this, or other patents approved, no one is going to invest in running more costly Phase 2 and 3 Trials, even if Phase 1 demonstrates efficacy.
If the company received patent approvals, elevating the stock price dramatically with that and early Phase 1 results demonstrating efficacy, a small R/S would get them the price that they're looking to achieve. On the other hand, if they don't achieve these things, they may be able to issue a lot of stock for operating capital, but without the IP rites going through the drug approval trials will require tremendous dilution, and the share price will be back to pennies, as what knowledgeable company would invest in a product that could be duplicated by practically anyone.
I would support a proposal that indicated no reverse split will be done until the company owns patent rights and demonstrates efficacy . at least Phase 1 on any product. A 1 for 3, or perhaps even 5 would be acceptable if the stock price at the time was over $1, and I believe that possible if you gain the IP rights and get a few months into a Phase 1 Trial.
Remember, a $4 price is only 4 cents if it occurs after a 1 for 100 R/S, it's less than a penny if they do a 1 for 500. This stock deserves to be worth far more than that, and if they'd build the price to what it should be, instead of tearing it down by their secrecy about what they're doing, we would be talking about a stock price today that's somewhere between a quarter and a dollar. It's the proposal to do the reverse split and their unwillingness to openly speak to investors with quarterly webcasts, etc. that has brought us down to pennies.
Sorry, no matter how much they've told you, even if it's all in their corporate presentation, they simply are not communicating sufficiently with the investment public to properly value the stock. If I could go on clinical trials and find every trial they're planning to begin this year, I'd feel a lot better about what they're doing. It doesn't excite me that years after putting the Phase 1 Trial into clinical trials, they never updated it to say it was starting, but months after it completed they finally said so.
I would like to see the Phase 2 for the psoriasis cream in the database, as well as the Phase 1 for the sublingual tablet. That's the sort of information that can impress new investors, and hopefully even without yet having the I/P rights, it could at least take the price above a dime.
Gary