Here is the 1/21/2020 conf call with my questions regarding

Quote:

Steve: Fourth-quarter revenue, from the 10k essentially showed zero from the third
quarter revenues. So, I assume there was some kind of revenue write-off from
the prior three quarters, because obviously, you had revenue in the fourth
quarter and just that was offset by some kind of write-off?
Joe: That's a good question. Is Mark Corrao on the phone? Maybe Mark can
answer?
Steve: I'm sorry?
Joe: My CFO must have dropped off, he could have answered that question. I'm
sure you'll--
Steve: I'm just curious, you said there was no change in revenue.
Joe: Well, again, like I told everybody, the last quarter--or the last conference call-
-we're filing the S-1, we have all the pieces now that we need to build a huge
enterprise, we need to get the S-1 filed, we need to be able to get the dividend
paid, we need to price the deal in the S-1, we need to file the addendum, get
the money in, and then you'll see big revenues. But there's not going to be
any revenues on a large scale without getting the full funding for us to write
off all these pieces.
Steve: No, I understand that. But the multiple companies that you purchased last
year all supposedly had revenues coming in, and so you expect to see those
revenues flowing through online.
Joe: No, the MSO, they will have revenues--I mean Pantheon has nice revenues,
MediSource has nice revenues, just not seeing those because of the digestion
of those companies. Olaregen has just started to do nice revenues; as a matter
of fact, in November, they did, as I said, about $450,000 in revs.
But again, we need the funding, it's very limited on what these companies can
do. For instance, if I gave Pantheon $1 million, they'll add $10 million in
additional revenue. Why? Because I'm able to do more kits--more shoulder
kits, more ankle kits, more knee kits, more toe kits. And the more kits I have,
the more business we'll do, and Patheon has over 200 percent plus earning
from where they were the quarter before.
Investor Call Transcript 01 21 2020
Page 32 of 43
So, there's no question, once we're funded, all these pieces will light up. And
again--I'll say that again--we did get the Veneto MSO and that MSO has been
dormant because it needs the money to light up those doctors with all the
products and then other things that we're going to be providing to them.
Steve: So, how many of those MSO doctors do you think are dropping off because
they're not doing anything right now? Are they looking at alternate MSOs to
join and drop out of yours?
Joe: I have no idea about anything like that. No one has ever told me anything like
that. That doesn't make sense to me because--
Steve: No, I'm not saying it's happening, but some doctors may have been shut down
for a year.
Joe: No, that would make no sense to me since they invested in the MSO. I didn't
invest in them, they invested in the MSO. So, if they want to lose their
investment, then I'm sure they can leave; but if they don't want to lose their
investment, I'm sure they won't.
Steve: No, that makes total sense. Regarding the S-1, I know the template S-1 has
been with FINRA for over four weeks--about five weeks now. And again, I
missed your update and I'm sure you gave this update in your comments on...
what kind of timeframe are you looking at still for FINRA with the S-1?
Joe: Alright, so let me back up for you. So, we had better-than-expected results
when we filed. We got our comment letter back in a day and a half, we filed
it Thursday night, we got our comment letter back on Monday morning. And
as our lawyers said, we couldn't have gotten a better result.
So, what they're waiting for now is just the addendum with the deal in it.
They have no comments for us on what we already filed. This is unheard of...
Steve: If you're punching numbers in there... or just waiting for you to punch
numbers in there to say...
Joe: No, they're waiting for us to put the deal up, the numbers are already in.
Steve: But there was about $400 million, but it was always at a share price to be
determined in the future or you guys give them some kind of notice in
advance and then...?
Joe: I don't even know what you're talking about.
Steve: [Chuckling] Okay, I was reading through the S-1--and $40 million, I'm sorry.
Yeah, $40 million.
Investor Call Transcript 01 21 2020
Page 33 of 43
Joe: Oh, that would go into the S-1 and the registration statement once our
investment bank circles up the rest of the money, and they can only circle up
the rest of the money. As I said before, once we're able to price the addendum
and what the deal would be--but I can't do that till the dividend is paid. I can't
do anything until the dividend is paid.
And again, I can give you a date tomorrow on what my projection is on
closing ALTuCELL, but that would be completely wrong if I don't get the
dividend approved by FINRA--and that's the government and that's out of my
control.
So, will my dates be off if they approve me? Hell, yeah they would be. But
there's nothing I could do about it. Now, if they approve me tomorrow, then I
could give you dates to stick to those dates because I'll have the government
in my lap. But as of right now, it's out of my hands.
Steve: Are you looking to expedite that date once FINRA gives you a date? Like if
they did give you approval tomorrow, are you looking to, "Let's get this done
on Friday."? Or are you going to have to give like a few weeks of timeframe?
Joe: No, I would do that immediately. As soon as FINRA gives me approval, it
would be immediate. I want this dividend done already, because it's holding
up every other aspect of the business.
Steve: I do like this dividend--I mean some people don't like that it's not a 1:1 of
GNBT, but I do like the idea of the 2 for 5 in NGIO because NGIO could end
up being worth more--the portion that we own of NGIO--as shareholders own
of NGIO--could be worth more to us than the GNBT shares would actually
be. So, it could end up being more than a 1 for 1, essentially, value-wise, for
the shareholder.
Joe: Listen, I had to reconfigure the dividend as we all know, because I promised
no more than $70 million shares would be in the market. That was my
promise. So, to keep that promise of it being on the $70 million after the
dividend would be done, I had to reconfigure it. That's what I promised.
Nothing else, nothing more.
Now, what we did do was we kept it under 70 or less--which is where we're
at with the new configuration--and we've given the additional NuGenerex
Immuno-Oncology to get at least close to where we were at 1 for 1.
But again, I've never promised anything on what the dividend would be, I just
promised we'd do one, and that would give us no more than 70 million shares
out, which is right around where we'll be at the end of this dividend.
Steve: Well, I know you keep your promises--or try to keep your promises outside
of outside influences. So, bringing the point, this Creek Mountain and them
saying that you signed to release the restriction on the legend, and obviously,
Investor Call Transcript 01 21 2020
Page 34 of 43
you said that you did not sign that release on the legend. So, obviously,
they're lying there. So, what kind of recourse do we have?
Joe: No, I never said that that was the agreement. The agreement is that they
would not sell their stock with--because they signed a waiver for the
dividend, meaning that they would not refuse the dividend. They were
entitled to get their shares unrestricted, I had no problem with them getting
their shares unrestricted, because of the simple fact they've been waiting a
long time and they said, "We would agree to give you your extension because
we've never been at default with them." But every quarter, we'd get their
extension, we get it in writing, and we're able to then enter that into our Qs
and Ks.
So, again, I believe that they're even saying that we're in default. Well, if
we're in default, we'd have do declare that in our Qs and Ks, and that would
have rendered our extensions not true--and that's just not the case. We have
extensions for every quarter up until the time--the November 30 was
postponed because of their actions. They agreed to keep those shares in book
entry... we even did them a favor and did it past a test at the transfer agent
level of sending them 5,000 shares without the legend on, so they can feel
comfortable that the legends have been removed. But they were supposed to
keep those shares in book entry--as we agreed--until after the dividend was
done. And they, behind our backs, went, took them out of book entry, put
them in their accounts, and when shares started being sold in blocks, we had
to do an investigation, we found out--to be honest, we couldn't even believe
that they would be the ones that would be hurting us. And it was--it was
them.
So, that's probably why they didn't file the 13G, because that typically would
tip me off--that would have tipped me off, it's not a requirement for them...
companies do get fined $250,000, $500,000 for not filing the 13G and we've
seen that before in the litigation cases we've seen.
But again, that would have tipped me off immediately that they were trying
to sell, and because they didn't file it, I never would have imagined it was
them, breaking the covenants that we had.
So, again, I don't know this guy running the show--I dealt with one of the big
fund managers that lived next to this guys, and he begged him for a job
according to the big fund manager, and they stuck him in this one investment
vehicle to protect their investment, I guess. So, he's not an investor, he never
invested his money and I don't even know the guy.
Steve: It's funny, his LinkedIn on shows that he was with Creek Mountain since
August 2019, and I pointed that out. And all of a sudden, yesterday, he
adjusted his LinkedIn to say that he's been there since August 2018 now, so
he's been there a year and a half instead of six months. So, yes, a little fictions
with the numbers there.
Investor Call Transcript 01 21 2020
Page 35 of 43
But anyway, like I said, Joe, I have every confidence that you had the
agreements done with them and they broke the agreements--and which made
no sense because they pushed the price down, which means the other shares
they owned are worth less money and they stopped us from going onto the
NASDAQ which would have made the shares worth even more. So, they
really screwed us and themselves with all this.
Joe: Who knows maybe the next-door neighbor--this guy who runs it, who
couldn't find a job from what I understand and they just stuck him there as a
surrogate, protecting his two big fund managers.
So, again, I don't know what the case is there, personally and how this guy
could have even gotten this job--I never dealt with him, I dealt with one of
these big fund managers who shepherds this, and then he would run and get
these guys' clients. So, again, I don't think I even had a conversation with this
guy.
James: Alright, Joe. I've taken up enough of your time and I know you want to move
on.
Joe: Alright. Well, listen, thank you for the call, for sure. Thank you.
Steve: Yeah, like I said, keep fighting for us; we do appreciate it and it is noticed by
people, don't take criticism from some people as being negativity, it's just
people--and it is what it is. So, just keep doing the hard work for us, and at
some point you'll be rewarded for your hard work. I do appreciate it.
Joe: Yes, thanks. And I like to say the road is littered with bad actors on the OTC,
I'm just not going to put up with this, and I'm more than happy to fight any of
them any of them that goes and hurts the company or the shareholders--and
that's what we've been doing.
Steve: I appreciate it, Joe. Thanks so much.
Joe: Thanks, Steve.