1.) BTD and Orphan Drug status have both been dropped from consideration by the Company.
2.) Under consideration by Management are the chances to raise money through exercise of current outstanding warrants. But those won't be exercised until expiration. The Paulson warrants at 0.75 won't do the Company any good since they expire a few years from now. The other warrants to individual investors at 1.50 and 2.00 expire soon, but are well out of the money. Other warrants at 0.50 to Naydenov et al., when do those expire?
3.) The Company is really interested in a reverse stock split for two reasons:
a) Provide liquidity for the big warrant holders. They are masters at marketing pump and dump schemes.
b) The Company only has about 5.5M authorized shares remaining to be issued. By doing a reverse stock split, this effectively (though not literally) increases the remaining authorization up to 8 times! They talk about doing a "financing" but this will be an equity-based, convertible note offering. The reverse stock split gives them more headroom to get this done.
Like Mulholland stated, the reverse split doesn't have anything theoretically to do with fundamentals, it is just financial engineering.
3.) The blind spot for all the sheep led by Management and Solicitors - and I am absolutely amazed that no one bothers to ask about this at the meetings or conference calls - is the economics of PRO-140. The economics are obviously not there. Obvious. There is not a large enough addressable market for the drug (Nader greatly overstates this, even with his limited 200k R5-exclusive figure), and even if there were, the economics are greatly inferior to those of the incumbent Maraviroc (manufacturing, distribution, royalties). Now is there any mystery why no pharma company expressed interest when PRO-140 was actively solicited by Progenics these last few years?
