NanoViricides Inc. (NNVC)

[KMBJN]

Or rather, they were paid "finder's fees" for helping NNVC go public in a reverse merger. Not sure if they brought in initial investors, or found / assisted with the reverse merger, or what.

The SEC asked about the arrangement, and it of course was a legitimate business transaction, not a payment to stock promoters (who would suddenly pay for one promotion 7 years later), as some would allege.

http://www.sec.gov/Archives/edgar/data/1379006/000114036107003550/filename1.htm

"lease revise your disclosure provided in response to our previous comment 105 to clearly indicate why you charged the fair value of the options issued to Messrs. Marshall and Weidenbaum to additional paid-in capital. In addition, we previously requested, please disclose the nature of your agreement with these individuals to subsequently cancel 200,000 of their options. In this regard, please disclose why these individuals were willing to cancel these options and what they received in return.

In June 2005, Allan Marshall and Robert Weidenbaum, stockholders who were instrumental in the negotiation, execution, and consummation of the acquisition by Edotcom.com of Nanoviricide, Inc., each received options to purchase 1,000,000 shares of NVI Common Stock at a price of $.05 per share, expiring May 31, 2008. The options were issued to these stockholders as finders fees. The fair value of these options in the amount of $107,028 was charged to additional paid in capital. In May 2006, options were converted into 1,800,000 shares of common stock resulting in proceeds to the Company of $90,000. In order to reconcile the number of the Company's outstanding securities as represented in the exchange agreement with NanoViricide, Inc., Thethe remaining 200,000 options were cancelled pursuant to an agreement between the parties. The fair value of cancelled options of $10,703 was reversed against additional paid in capital."

I was wondering too, why they would give up 200,000 options. It still isn't clear. Maybe somebody has a good conspiracy theory to try to make the company look bad?

In any event, it's all just interesting but irrelevant history, as some have stated.

Looking forward to tox starting "soon," some initial preclinical efficacy results from PHE, LRRI, or Viroclinics, and more progress on cGMP plant certification.