LOL. Joe is well aware of CYDY. Like some here he is probably tired of hearing me.
The companies, as similar as they are in many ways, chose completely different ways to raise money using shares the last few years.
CYDY used common shares and mainly one broker dealer called Paulson to sell shares and warrants to small, medium and a couple whale sized investors. This was necessary as they had no revenue stream and have expensive trials to fund. Not unusual for a small biotech company. Especially one who was nearly BK when the current CEO stepped in and righted the ship. Sound familiar? The selling of shares was 100% transparent to most everyone at the time. No purchases of other companies, shells to reverse into, no references to acquisitions that didn't materialize. Etc. One product and for a long time one indication. HIV. Simple.
Generex has used shares to guarantee the purchases of companies/services Joe felt would add value or revenue to fund our programs. Unfortunately, first one thing and then another and poof, shares that were expected to be sold after GNBT/NGIO listed/up listed( or not at all if Generex had been able to pay in cash) have been sold to us since last fall. So Generex gained something for what they paid but very little vs the cost, at least to this point. Plus virtually no progress has been made towards completing the companies plans as a result of these setbacks and Covid.
On the CYDY side, not only did they receive cold hard cash when they sold the shares originally, they have since raised maybe 50 Million dollars from the warrants being exercised. This happened almost by accident thanks to Covid. They have a brilliant consultant who understood the mech of action of their drug so well and deduced it might be beneficial in treating Covid. Up until this time it was HIV and cancer they were working on with plans for NASH and GvHD.
To be fair pretty much everything from about $3 and up is Covid related for CYDY. They got to $3 based on HIV partnership with a pharma group. It wasn't that long ago we were at $3 for Generex based mostly on expectation.
GNBT screwed things for itself years ago and the market will never give us the benefit of the doubt. Proof is needed. BARDA or no BARDA, we have to show our vaccine tech can be part of the answer for Covid, swine flu or cancer. Other than that, can we finish the Altucell deal and get the Regentys product being studied. Excellagen sales would help. I have written off everything else as bad debt on my imaginary balance sheet. Labs, MSO's, HMO's, pending acquisitions etc. Obviously NGIO IPO is a near term potential catalyst.
What should it be valued at? Thomas Barnard and I were independently looking at valuations last year and we had Generex between $26-28 as I recall at 18 months from funding. Of course nothing that was planed has happened. Other than dividends were paid and NGIO has been spun and the recent funding. Some progress but the pace is terrible.
I think Joe knows the perils of raising money the way we have in the past, hence the Oasis deal and the NGIO IPO route. I have a bit more confidence since he named the investment banker.
BTW, I get a lot of "I can't disclose non public answers" from Joe.
So... where is GNBT's S-1 approval? Why is the SEC taking so long?
The companies, as similar as they are in many ways, chose completely different ways to raise money using shares the last few years.
CYDY used common shares and mainly one broker dealer called Paulson to sell shares and warrants to small, medium and a couple whale sized investors. This was necessary as they had no revenue stream and have expensive trials to fund. Not unusual for a small biotech company. Especially one who was nearly BK when the current CEO stepped in and righted the ship. Sound familiar? The selling of shares was 100% transparent to most everyone at the time. No purchases of other companies, shells to reverse into, no references to acquisitions that didn't materialize. Etc. One product and for a long time one indication. HIV. Simple.
Generex has used shares to guarantee the purchases of companies/services Joe felt would add value or revenue to fund our programs. Unfortunately, first one thing and then another and poof, shares that were expected to be sold after GNBT/NGIO listed/up listed( or not at all if Generex had been able to pay in cash) have been sold to us since last fall. So Generex gained something for what they paid but very little vs the cost, at least to this point. Plus virtually no progress has been made towards completing the companies plans as a result of these setbacks and Covid.
On the CYDY side, not only did they receive cold hard cash when they sold the shares originally, they have since raised maybe 50 Million dollars from the warrants being exercised. This happened almost by accident thanks to Covid. They have a brilliant consultant who understood the mech of action of their drug so well and deduced it might be beneficial in treating Covid. Up until this time it was HIV and cancer they were working on with plans for NASH and GvHD.
To be fair pretty much everything from about $3 and up is Covid related for CYDY. They got to $3 based on HIV partnership with a pharma group. It wasn't that long ago we were at $3 for Generex based mostly on expectation.
GNBT screwed things for itself years ago and the market will never give us the benefit of the doubt. Proof is needed. BARDA or no BARDA, we have to show our vaccine tech can be part of the answer for Covid, swine flu or cancer. Other than that, can we finish the Altucell deal and get the Regentys product being studied. Excellagen sales would help. I have written off everything else as bad debt on my imaginary balance sheet. Labs, MSO's, HMO's, pending acquisitions etc. Obviously NGIO IPO is a near term potential catalyst.
What should it be valued at? Thomas Barnard and I were independently looking at valuations last year and we had Generex between $26-28 as I recall at 18 months from funding. Of course nothing that was planed has happened. Other than dividends were paid and NGIO has been spun and the recent funding. Some progress but the pace is terrible.
I think Joe knows the perils of raising money the way we have in the past, hence the Oasis deal and the NGIO IPO route. I have a bit more confidence since he named the investment banker.
BTW, I get a lot of "I can't disclose non public answers" from Joe.
So... where is GNBT's S-1 approval? Why is the SEC taking so long?
6
