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strong play, I bought 1.52
Working on 6 straight green days now. Could see the merger next week, I'd expect the Nevada SOS to be updated first, then probably a PR and/or 8K shortly after.
Jan 20 2017 1.65 0.11 +7.14% 1.50 1.70 597,362
Jan 19 2017 1.54 0.09 +6.21% 1.45 1.61 632,700
Jan 18 2017 1.45 0.25 +20.83% 1.22 1.45 937,728
Jan 17 2017 1.20 0.25 +26.32% 0.93 1.24 679,735
Jan 13 2017 0.95 0.12 +14.46% 0.815 0.95 527,225
Jan 12 2017 0.83 0.005 +0.61% 0.82 0.87 406,014
I'm kind of surprised at the amount of flipping here, seems like there are better stocks to day trade. This should be attracting more position traders and long investors IMO.
This is the current share structure and a guess at what the post merger ss will be. Even if the unrestricted was maxed out, which it isn't, not even close IMO, There would only be 11.6M shares available right now in the float. That is nothing for a cannabis biotech/pharma company, this should fly post merger, so why flip for pennies now...?? Seems short sighted, I don't think the flippers have any idea what this company actually is.
Current share structure
Authorized Shares--300,000,000
Outstanding Shares--47,600,000
Restricted-- 36,000,000
Unrestricted-- 11,600,000
Float--Unknown
After merger (guesstimate)
Authorized Shares--300,000,000
Outstanding Shares-52,000,000
Restricted-- 38,000,000?
Unrestricted-- 14,000,000?
Float--Unknown
Run it up....and shake it down.....wash...rinse and repeat. Be glad when the merger is completed and we start bringing in some actual INVESTORS in this and not just flippers...lol.
I just sit back and watch the games, I'm not a day trader, don't even try to be.
Yes, I saw that 3 months ago, I'm just trying to understand in what world is selling up to $4M in regulated, restricted securities to an accredited investor(s) is a bad thing...??
You do realize that companies go public for the purpose of raising capital to grow their operations..?? Probably more than 90% of all OTC companies can not even secure private placements period, as it's too risky for the investors to tie up large amounts of money, for that long a period of time.
Thats why the majority of OTC companies either A) instantly dilute shareholders by dumping millions of shares on the open market and/or B) enter into death spiral(toxic) convertible debentures, that convert to millions and millions of shares very quickly and at very low prices.
So the fact that NewGen is locking up long term private placement financing, to get the working capital they need, is fantastic IMO, it means no instant dilution..!!
So I'll worry about those, up to 4M shares, of 'possible' dilution a year from now, if and when it happens.
Item 1.01 Entry into a Material Definitive Agreement
On January 10, 2017, NewGen Biopharma Corp., a Nevada corporation (“Parent”), entered into an Agreement and Plan of Merger (the “Merger Agreement”) with NewGen Merger Sub Inc., a New Jersey corporation (“Acquisition Corp.”), and NewGen Biopharma Corporation, a New Jersey corporation (the “Company”). Pursuant to the Merger Agreement, Acquisition Corp. will merge with and into the Company (the “Merger”), with the Company surviving the Merger as a wholly-owned subsidiary of Parent upon the terms and subject to the conditions set forth in the Merger Agreement.
As set forth in the Merger Agreement, each share of common stock, no par value per share, of Acquisition Corp. that is outstanding immediately prior to the effective date of the Merger (the “Effective Date”) shall, by virtue of the Merger and without any action on the part of the holder thereof, be converted into the right to receive one (1) share of common stock, no par value per share, of the Company, so that at the Effective Date, Parent will be the holder of all of the issued and outstanding shares of the Company.
Immediately following the Effective Date, there will be no more than 52,000,000 shares of Parent’s common stock issued and outstanding, which shall consist of (i) 10,000,000 shares of Parent’s common stock issued and outstanding immediately prior to the Effective Date, (ii) an aggregate of 40,000,000 shares of Parent’s common stock issued to the stockholders of the Company, and (iii) $2,000,000 shares of the Parent’s common stock which may be issued and outstanding pursuant to the Private Placement (as defined below), excluding any shares of common stock issuable under outstanding warrants.
Pursuant to the terms of the Merger Agreement, Parent may issue and sell up to a maximum of $2,000,000 of its Units in a private offering at $1.00 per Unit with each “Unit” consisting of (i) one share of Parent’s common stock and (ii) a warrant to purchase one share of Parent’s common stock at $1.00 per share (the “Private Placement”). The proceeds of the Private Placement shall be used for the purpose of financing the Company’s ongoing business and operations.
The 2M in private placements and warrants @ $1 will be restricted securities, those do not concern me in the slightest.
In fact private placements are the right the way to go, most OTC companies issue toxic convertible promissory notes, to raise capital, because they can't find anyone to do private placements, it's too risky for the investors.
Volume has increased exponentially every day since this started trading.
01/18/2017-- 937,728
01/17/2017-- 679,735
01/13/2017-- 527,225
01/12/2017-- 406,014
01/11/2017-- 340,513
01/10/2017-- 242,024
01/09/2017-- 108,115
01/06/2017-- 15,250
The filed merge 10-Q says: the company will sell 2000 000 units of shares at $1.00. Not sure this uptrend will last ??? days?
Nice close, didn't quite hit the 1M volume mark but came darn close.
Again one of the top advancers on the OTC over $1 today.
NEWG 1.45 +20.83% $1,252,536 937,728 volume 619 trades
Just surpassed $1M dollars in trades today.
Welcome aboard, should be quite good IMO. The first wave of buying was primarily institutional investors, market makers, etc. The last 2 days appears to be much more retail, probably day and swing traders who's scans picked up on the volume.
We haven't even begun to get the mj/cannabis players, the pharma/biotech players or even the due diligence players, as the public doesn't even know about this yet....this is still very much under the radar, even with the volume explosion.
Looks good big brother. I saw this yesterday!
Big time volume coming in today, should easily surpass 1M shares for the first time. Whats more amazing is that the merger hasn't even officially finalized yet. Hell at this rate we might get 3M+ volume when the 'super' 8K and/or PR comes out announcing the merger completion.
Record day for NEWG today, this was one of the top advancers on the OTC market, 400+ trades and over $775K in dollar volume as well.
NEWG 1.20 +26.32% $775,537, 679,735 volume, 402 trades
Someone alerted me to PNAT the other day, I have no idea whats going on there, but I wouldn't be surprised at all to see a similar move here with NEWG. I'm a DD guy, I don't play promotions, unless I find them before the promoters, which has happened in the past(ie ECAU which was a big Chuck Hughes/Paragon promotion back in the day).
As far as PNAT is concerned, right now it's just a great runner, is it a 'pump' who knows.....I don't classify something as a pump unless it's actually being pumped...lol. I see nothing on PNAT whatsoever, no penny stock newsletters, no hard mailers, virtually no iHubbers, no nothing for that matter.
NEWG is simply getting loaded based on the due diligence from institutional investors....and today retail investors finally caught on and started to take notice and buy as well IMO.
Good post, but I must disagree that the days of those pumps are long gone. They're not as high-profile these days, but they're still around. I don't have a full list of the pumps as I don't like to play them, but for starters have a look at PNAT. It's got about 30 consecutive green days.
My last post today so I won't be able to write any more until tomorrow. Have a nice day :)
I'd agree with that to an extent, I mean if your just looking at the loading itself, yeah it looks a lot like you use to see in those big SMA, APS, Paragon promo's back 4 or 5 years ago. However, that's not the case here, those types of promos are looooong gone and have been for years.
IMO instead I think what were seeing here is what can happen when the person running the show is a former top Wall Street biotechnology analyst and has the connections to go with it.
Now combine that with a fantastic looking company, with an extremely strong pipeline of drugs, a $100M nanotechnology/transdermal platform and currently conducting research and development into nano and transdermal cannabinoids(see Zynerba (NASDAQ: ZYNE currently sitting @ $19.50 pps) and I think you'll understand the interest.
I noticed L2 on this trades like it's a pump. Any thoughts on that? Honestly I didn't understand the 8K from last week at all and am still trying to figure out what kind of play this is. I went long today with a small speculative position as the chart is nice...that was good enough to get me in with a starter position.
Thanks,
Bog
All IMO. I'm not an adviser.
They let it loose a little bit but not fully, don't want it to run too hard before the official merger announcement IMO.
Looks like they finally let it loose, eh?
Good volume rolling in, looks retail, don't see any news right now so not sure where it's coming from. Does not appear they are ready to let it run away just yet though, still seem to be holding it back, perhaps waiting until the merger becomes official.
I'd imagine this will be brought to around $1, maybe a bit higher, then the merger will be announced and the $2M private placements @ $1 shortly after.
Hopefully then they will let it run with minimal dilution and see where it goes. The MM's have probably loaded around 1 to 1.5M shares, you don't send a cargo ship out to sea without LOADING it first!
IMO this should run run pretty hard when retail comes in heavy after the first PR's......we'll soon see, shouldn't be long now.
Added some more @.93, wanted to be fully loaded before the first PR goes out.
One thing it would be nice to see on the website, once the merger is complete, is the full share structure including the float numbers.
These guys just recently switched to using Action Stock Transfer as their TA. Action Stock Transfer is a larger but discount or budget TA, they offer no updates on OTC Markets or provide shareholders with any share information, on any of their clients.
IMO for the sake of full transparency the company should provide this info on their website. Not to mention the float is very small here so it is also a good selling point on the stock as most OTC companies in the marijuana/cannabis arena have bloated share structures.
Not that I consider this an MJ/cannabis company per se, it's really a nano-medicine company that happens to be developing some cannabinoid products.
Kudos to whoever designed the new website because it looks great and there is really a wealth of information on the company there.
I thought the company looked good when I just knew about their MNP Platform and Estrasorb but the nano-cannabinoid research and the info posted on the reformulated API's takes this to a whole other level.
I could not find many companies out there conducting transdermal or nano-cannabinoid research, I'd say their closest competitor would probably be Zynerba Pharmaceuticals (NASDAQ: ZYNE), In many ways I feel like NewGen actually looks better than ZYNE though.
ZYNE did a NASDAQ IPO so they are on a better exchange and have more cash, however, at least $100M has been invested into developing NewGens MNP Platform and it has FAR more flexibility vs simply the two products that ZYNE is developing.
I think this is going to be a company to watch in 2017, if they can manage to keep dilution at a minimum and not enter into any toxic convertible financing deals this could be pretty epic IMO.
Beyond the NanoCannabinoids they have a very strong pipeline of products with serious potential.
Wow the new website looks fantastic, lot of information there. It's funny I was just thinking to myself the other day that it would be cool if their proprietary MNP platform could be used in conjunction with cannabis/THC somehow.
I think this is the best looking marijuana stock I have seen yet..!!
**New Website Online**
Very interesting, now I see where all this buying is coming from.
The MM's seem to be fully loaded now. It appears as though approximately 1M shares have been sold thus far, IMO that's enough to make this reasonably liquid but still not impede any upward movement once more retail buyers come in. No clue on how many more shares are being sold but from here on I would personally spread them out over the next 90 or 120 days.
This will still need a $3 min bid for an NYSE uplisting, if they go that route, as the float continues to grow exponentially that gets more and more difficult.
$80K dollar after hours trade yesterday. IMO the MM's are loading up like this because they are anticipating a large influx of retail orders after the merger is finalized. I really see no other explanation for a new trading stock to get bought in this fashion.
01/12 0.8255 97500 OTO
Yes that was exactly my point! :)
Looks like around $500k in trades, over the past two trading sessions, pretty impressive for an unknown shell company that technically hasn't even finalized their merger yet. If this doesn't pique an investors interest then I don't know what would...!
Yeah there is a LOT of money being poured into this for sure, I figured it would happen but not quite on this level. I wonder how many shares they are planning on selling in this phase, once the selling tapers off I think this should start moving North quickly.
I think it's going a lot higher. Hundreds of thousands of dollars are buying up the shares. Nothing to scoff at
What do you think about the trading action thus far..?? Obviously a lot of dilution but it's getting soaked up by the market makers.
8K filed today, shows the merger agreement revised a bit from the one filed in October. This new filing no longer shows the clause where Greenwind paid $100k+$400K at closing and $500k per quarter, only shows the $2M private placements and $2M warrants.
Now the closing conditions are set as:
I think it's safe to say that the market makers are not going to be short on this stock as they have been getting their boats loaded these past few trading sessions.
It's unfortunate to see this much dilution this early on, and this cheap, however, it's probably due to the amount of money Greenwind will owe at closing, they have to raise the money somehow, selling shares appears to be it.
IMO If shareholders are going to experience $500K worth of dilution, each quarter for the next 4 quarters, then I will have to temper my expectations for this stock.
Looks like NewGen BioPharma's subsidiary, New India Biopharma, was one of only 11 companies to receive a direct investment from the Indian government back in 2015.
http://inbministry.blogspot.com/2015/10/government-approves-eleven-11-proposals.html
http://www.thehindubusinessline.com/economy/centre-gives-nod-for-10-fdi-proposals-worth-167515-cr/article7426019.ece
http://www.indiainfoline.com/article/news-top-story/govt-approves-11-fdi-proposals-worth-rs-15-68-bn-115100700548_1.html
Seems to be getting brought up in a slow, controlled fashion, I doubt much of the buying thus far has been retail as it just isn't on any radars yet.
Hopefully once the merger finalizes, awareness gets generated, and more retail investors start coming onboard, it thins out a little bit and we don't have to chew through large blocks on the ask at every step up.
Thanks! Added more today, these big buys rolling in can't be ignored. Not crazy about so many shares getting sold @ .80 but these buyers are institutions, funds, etc.
Good idea, I requested it
Stock chart request, probably don't have enough folks following this board yet but I figured I'd at least try.
I have no clue on how many requests it takes to get a symbol added, however, if we can manage to get a chart I will add it to the iBox.
http://stockcharts.com/support/symbolrequest.html
I'm in at .80 as well, with the exception of a handful of shares that traded @ .79 that's looking like the best entry price. Ideally it would be nice to see it well over $1 once the merger finalizes and the first PR goes out.
Yep, I see it. Managed to get filled at 80 cents luckily
Lot of buys rolling in, I was kind of hoping they wouldn't let any more than 50K or so go @.80 but we are already at about 100K. Shouldn't be a problem going forward though, this is still going to run, once they let it.
I find it interesting to see VFIN, an institutional investor, as the top bidder. On most penny stocks you typically see VFIN on the ask diluting.
It's never a good sign to see him on the ask....but....it could be a good sign to see him on the bid, I've seen it as an indicator of an impending run before.
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