Rock Creek Pharmaceuticals Inc. (fka RCPIQ)

[NukeJohn]

One of My Biggest Fears...

With the stock below 30 cents, my biggest fear is that a big Pharma (or a corporate raider) could attempt a hostile takeover at an unrealistically low price. I have spent over ten years following this company (which I believe one day will be worth over $50/share as the widespread benefits of Anatabine become known). I would hate to see a deep pocketed pharma company or a corporate raider come along and steal the company for under $5/share. Even if they were forced to up the offer to $10 or more, that is still not a realistic price for a biotech company that will eventually have pharmaceutical version of anatabine citrate that can be used to treat dozens of auto-immune related diseases and diseases associated with chronic inflammation.

Of course, a lowball offer by a big pharma or a corporate raider would be heavily opposed by management. But, I fear there have been millions of counterfeit shares bought over the past few years (and, unfortunately, those parties get to vote). What do I mean by counterfeit shares? Read the article about "Phantom Shares"(linked below). It explains how naked short selling generates counterfeit (or phantom) shares. In a proxy fight, people with counterfeit shares get to vote and could determine the outcome of a hostile takeover attempt. Read the bottom of page 57 and the top of page 58 in the article linked below.

http://object.cato.org/sites/cato.org/files/serials/files/regulation/2008/2/v31n1-7.pdf

excerpt from above...

Bloomberg Markets also reported on a review of proxy vote counts conducted by a large stock transfer agent in 2005. That review, originally made public by the Securities Transfer Association, a trade group for stock transfer agents, tabulated the results of all proxy votes submitted by banks and brokers in 2005. For 341 equity issues, attempted over-voting—the submission of too many ballots—occurred in all 341 cases. Arbitrageurs are exploiting this crack, suggests Drummond; one source notes, “It appears to be the case where there are opportunities to game the system.” Drummond concluded that until these problems are fixed, “double and triple voting on one share will continue to make a mockery of shareholder democracy.”
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It's entirely possible that a large number of shareholders who bought in at prices < $1 might own these phantom shares and they might vote to accept a tender offer at $4 or $5. While I completely understand that a lot of people who have suffered for years owning this stock might be happy getting out at $5....I definitely would not. My target selling price is much higher.

We should be paying close attention to the volume and price action over the coming days and weeks. If there are any signs of heavy accumulation (3-4 million share days with the stock up over 10%), then be on the lookout for Form 13-D filings in mid to late October. Once a company (or individual) reaches a holding above 5% of the outstanding shares, they must file a Form-13D or 13-G within 10 days.

The recent BioPharma 2014 biotech conference last week in Boston should help boost the stock price as the big pharma companies begin to appreciate the game changing discovery of anatabine citrate. Once the world knows about the anatabine preclinical trial results on diseases like MS, Alzheimer's, and traumatic brain injury, the stock price might approach a level where a bidding war might generate an acceptable price.

JMHO,

NJ