SentiSearch, Inc. (SSRC)

[e-ore]

PRE 14A filed yesterday, 6/19/11. They're looking to increase the A/S to 40 million from 20 million. I'm sure it will be approved; SSRC is 75.5% beneficially owned. I still love this stock on the potential that Bayer Crop Science will buy them, assuming the technology works. Current SSRC market cap is about $5 million, way, way less than Bayer would buy them for, imo.

There are a couple of reasons for the A/S increase. One is that they have awarded more options and warrants than there are authorized but unissued shares. The other is they may do some equity financing, which they have discussed in their filings since they spun off from Sentigen in 2006. Up to this point the insiders and beneficial owners have provided all necessary funding, sometimes with promissory notes and sometimes with notes convertible into common stock. That may happen again, or they may attract additional beneficial investors. This company is extremely well connected, and does not, in my opinion, need any type of "toxic" financing to continue.

If they develop their own products from the collaboration with Bayer (which they are entitled to do, for certain products) then equity financing would allow them to collaborate with household product companies on a novel mosquito repellant, which would likely be produced by the household product company, then SSRC would collect royalties on sales. This, according to their filings, is their "intermediate term" goal. Would that make them worth more than $5 million as a market cap? I think so, and much more than $5 million. All this assumes that they are on the right track for the development of revolutionary insecticides/repellants. Are they? Some big names think so :)

Their lead scientist (Dr. Richard Axel) is a Nobel prize winner for this line of work (SSRC has an exclusive worldwide license for any use of the developments).
He and his team have received $10 million in grants from the Bill and Melinda Gates Foundation specifically for this research.
Bayer Crop Science has signed a 2 year research and product development agreement with them, and agreed to provide $500,000 in front money.