NanoViricides Inc. (NNVC)

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WHY ANOTHER PIPE IS UNLIKELY

Pre-revenue companies have great leeway in how their raise capital but the law may suggest there are limits

Take this case as an apocryphal tale: shareholders sue management of a company for the egregious terms of a PIPE. The court calls the transaction "a transparent conversion of stockholder equity by management".

With Gene and Anil already on thin ice, it's likely their legal advisors are telling them there are limits to how bad the terms of a capital raise can be before it places them in jeopardy.

My prediction; there will be no more capital raises unless it comes from someone inside the company. Dr. Boniuk, a very shrewd and successful investor, is unlikely to help out again.

Long-term support continues to hold. So far, the market has not given up on NNVC.

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