Hi Beaner:
There are too many unknowns. however, it seems to me that CSBR will have to make an announcement regarding the Company since the minority interest must be reflected in the next 10-K if the Company is funded. Also, we do not know when the rights for the drug that was being tested was being transferred to the new Company. This must also be diusclosed. I, too, am concerned about the lack of disclosure and that is why i wrote the email to the C.E.O. that an announcement had to be made soon or CSBR runs the risk of current shareholders selling their stock due to a lack of information and assumptions that they are making that may be wrong.
There may be a positive spin on this in that CSBR may increase the number of drugs going through the tumorgraft platform to determine whether the drugs have any eficacy in treating cancers. This may lead to a significant increase in sales of CSBR. Perhaps management wanted to become the Company that tests all of the potential drugs for the Israeli Company.
At this point, there are simply too many unanswered questions for us to make a valid decision as to whether this will turn out to be a positive for CSBR. I specifically asked the C.E.O. to indicate why CSBR shareholders will be better off with this kind of a set-up than they would have been the other way. It could be that CSBR felt that they could not get investors who would invest sufficient funds in CSBR to take the drugs through the testing procedures since they would not get a large enough percentage of the Company for the risk that they would be taking. I suspect that pretty soon there will be full disclosure as to exactly what is going on particularly since I let the "cat out of the bag" by letting management know that we investors are aware of what is going on in Israel with CSBR but do not know the details.
