I think $40M is way too much to go for right now.

I think $40M is way too much to go for right now. Also, they are selling 1 share of GNBT with 1 warrant, so we are talking about 2 shares potentially. Now granted, if they exercise the warrant in the future (usually they are for 5 years) then GNBT will get funds from that exercise. As an example, if the stock is at $0.80 (as zolis illustrated), then the warrant might be priced at $1. So if 54M shares/warrants were issued, then GNBT goes to $2 within 5 years, then the purchaser could buy 54M shares of stock at $1 from GNBT and resell at $2. However GNBT gets the $54M from the investor as working capital now.

I really hope GNBT uses say $15M of this money to invest in NGIO without an outside investor (on the NGIO side) and uplist. Then GNBT owns most of NGIO which should raise the asset value on the balance sheet.

Disclaimer: Of course, all of this is my opinion and you should not make any investment decisions based on my opinion. I have not received any non-public information.