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Re: Pedro2004 post# 14577

Tuesday, 05/12/2015 10:44:58 AM

Tuesday, May 12, 2015 10:44:58 AM

Post# of 15662
Right on point Pedro,......

Dilutive financing - the bane of pretty much all pre-revenue, developmental stage biotech & tech stocks.

At least in this case - the terms for this EDA are not completely unreasonable. However - anytime that 35 MM freshly minted shares make their way into the market for a company with essentially nil in revenue and ongoing expenses,....

It makes it hard for the existing shareholders to realize any gain or feel they are making any headway - even when there is regular 'good news' coming out of the company.

IF (and this remains to be seen) by 'spending' 35 MM new shares HEB can finally get control of its own manufacturing destiny, and get a product completely through clinical testing,....

THEN there will be a longer-term payoff via revenue generation.

In the meantime - don't overextend on HEB - and IMO anybody who buys and holds here in the short & medium term with money that they can't do without is being dumb.

“The two most powerful warriors are patience and time.”
- Leo Nikolaevich Tolstoy