NanoViricides Inc. (NNVC)

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I've only seen thinly traded microcaps like NNVC, whose too-good-to-be-true stories have been proven false by the passage of years, manage to raise money in one way. That is through private investment in public equity (PIPE) offerings.

These deals often involve selling shares to PIPE investors at some fraction of the current market price, usually restricted so that investors can't dump their shares before six months after purchase.

To make this work, investors have to believe they stand a near certain chance of being able to dump their shares in six months for a profit, realizing that all the other PIPE investors would be selling at the same time. That requires two ingredients: a sufficient discount to current market price, and belief that the management will be able to generate sufficient liquidity at the appropriate time.

Thus, liquidity rather than share price becomes the biggest problem for shit-microcap financing.

Anyway, with respect to NNVC, this seems problematic. Could they raise $10M today if they offered PIPE investors $0.50 shares? Investors would have to believe the market could absorb the dumping of 20,000,000 shares in six months time above that price. Even if successful, that would only support NNVC's current operations for another 10 months, without any of the associated costs of IND and clinical development.

I think NNVC is in a tough spot right now with respect to their ability to raise money. The time for them to do a PIPE was back in early 2016, while Seymour was selling the story they were going to be in clinical trials by early 2017. Spectacular "Skin-patch" results from Moffat won't cut it.