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Here's my take on this "set-back". I believe because the FDA is statutorily required to act within 30-days - they don't have a say to change that requirement - that the FDA suggested, allowed, and accepted the conversion of the IDE to a Pre-sub, to avoid necessarily complying with the statutory deadline, which would greatly limit the FDA's actions. Meaning, the FDA could have complied, but to do so would require a denial. For some reason the FDA didn't seem comfortable approving with conditions. So, I view this as a positive, notwithstanding my huge disappointment. I've been a holder since this company went public about 30-years ago. Now, likely after the up to 45-days to resubmit the IDE - not necessarily 45 days - I don't see it likely that the FDA would then take another 30-days to review, although they can. In this case, I would expect that the FDA will be ready to quickly approve the IDE and I wouldn't be surprised that they would make an announcement of such ahead of the normal 30-day route; i.e. not let the 30-day expire without a denial and therefore being approved.
Don't know, that's why I'm asking. Hard to believe he flipped this for 30k-40k. Maybe bought for and sold to another party, trying to keep it under the radar. Certainly, trading weird. But, holding my position. It's gotta be worth more than it's trading for, if just for the accumulated deficit, I would think.
Markay sold off his position today. Holds 0 shares now.
Been almost a year since I checked in on this board. A time when I expressed the challenges of this company and my belief of the realistic stock value - which was under .01. It appears it never quite reached that, but has gone down about 85%, instead of the pumping at .10, particularly by one poster here. I tried to explain in great and exhaustive detail my value analysis and my experience in the logistics industry, but a louder more disparaging voice seemed to prevail for many. Oh well...lesson to learn is know who is pumping or dumping a stock before buying.
As I stated over and over and over again...GNBT never, ever, ever, ever delivers! That said, I'll amend this to say that GNBT/Moscato can always be counted on to deliver failure.
https://businessbankruptcies.com/cases/generex-biotechnology-corp
Apr 23 1 Petition Chapter 7 Involuntary Petition Re: Generex Biotechnology Corp Filed by Petitioning Creditor(s) Generex Biotechnology Corp, Three Brothers Trading, LLC d/b/a Alternative Execution Group (attorney Zachary P Hyman), Three Brothers Trading, LLC d/b/a Alternative Execution Group, GS Capital Partners, LLC, GS Capital Partners, LLC, BHP Capital NY Inc, BHP Capital NY Inc, Beijing Youfeng Biological Technology Co Ltd, Beijing Youfeng Biological Technology Co Ltd, Bedford Capital Group, LLC, Bedford Capital Group, LLC (Hyman, Zachary) (Entered: 04/23/2022)
COURT
Florida Southern Bankruptcy CourtCASE NUMBER
0:2022bk13166TYPE / CHAPTER
Involuntary / 7
surprise, surprise, surprise...
I forgot about Medisource. So company registration I assume had to do with that now shuttered business...or, is it?
Looks like an auto body shop. Recently sold 02/2021 to Surgical Ambulatory Regional Centres out of Draper, UT. (SARC Draper, LLC). Have no idea what this has to do with Nugenerex. Interestingly though, Nugenerex established a Texas Corp in 07/20.
Uhhhh...this the MM. It's one way they make money. They can sell short all they want.
The 600k+ trade looks to be the MM covering his short position at .0305 after selling short at probably .0328 - .0329 range. Normal MM transaction.
Green as the MM covered his short at .0305. Looks like average short sale at around .0328-.0329.
There are exemptions to reporting sales of stock.
"Non-Public Offering (Private Placement) Exemption
Section 4(a)(2) of the Securities Act exempts from registration “transactions by an issuer not involving any public offering.” To qualify for this exemption, which is sometimes referred to as the “private placement” exemption, the purchasers of the securities must:
either have enough knowledge and experience in finance and business matters to be “sophisticated investors” (able to evaluate the risks and merits of the investment), or be able to bear the investment’s economic risk;
have access to the type of information normally provided in a prospectus for a registered securities offering; and
agree not to resell or distribute the securities to the public."
See specifically "Regulation D — Rules 504, 505 and 506"
The MM sees the order book and sees the block trades. MM simply calculates number of shares to be "dumped", he takes advantage by making short sales knowing the price will be coming down, buys to cover. More profitable I'm sure than making it on the spread.
As I pointed out yesterday, these large end of day trades are likely the MM covering his short position. In this case the MM can see the order book with the sells pending, he then shorts shares (naked) at the higher trade prices and subsequently accumulates at lower prices to cover his short sale. Large "trade" reflects his covering. Common practice for MMs and legal way they can make money.
This is likely why the trades show up near end of day on time/sales, but not level II.
The S-1 explains the restricted share ownership.
"A substantial majority of our outstanding shares of common stock are “restricted securities” within the meaning of Rule 144 under the Securities Act. As restricted shares, these shares may be resold only pursuant to an effective registration statement or under the requirements of Rule 144 or other applicable exemptions from registration under the Act and as required under applicable state securities laws. ... Rule 144 also permits, under certain circumstances, the sale of securities, without any limitation, by a person who is not an Affiliate of the Company and who has satisfied a one-year holding period. A sale under Rule 144 or under any other exemption from the Act, if available, or pursuant to subsequent registrations of our shares of common stock, may have a depressive effect upon the price of our shares of common stock in any active market that may develop."
***EDITED***
3A hasn't "pledged" any shares. They want to be able to sell their unregistered shares, whether via the offering or on the open market. They currently cannot sell because the shares are not registered. The company has to file and pay on 3A's behalf for the registration of their shares.
I agree it's probably better for the company to scrap the NASDAQ up-listing until they clean-up the capital structure a bit (since it appears there might be confusion to their plan), like cleaning up all common share derivatives. As well, contemplate a greater r/s, perhaps 1/500 or 1/600. The increased r/s may prevent the company from running-up against the NASDAQ $4 share requirement.
In response to a post earlier...The S-1 is crystal clear. Call the company and ask them.
From S-1
"Selling Stockholder Sales
This prospectus covers the possible resale by the Selling Stockholder identified in the table below of up to 25,000,000 shares of our common stock. The Selling Stockholder acquired such shares through the partial conversion of a convertible note. See “Recent Developments” for a more detailed description.
The Selling Stockholder may sell some, all or none of their Selling Stockholder Shares. We currently have no agreements, arrangements or understandings with the Selling Stockholder regarding the sale of any of the Selling Stockholder Shares.
Again,
Per the S-1, which has to be read completely. In plain English, it says:
"Selling Stockholder Sales
This prospectus covers the possible resale by the Selling Stockholder identified in the table below of up to 25,000,000 shares of our common stock. The Selling Stockholder acquired such shares through the partial conversion of a convertible note. See “Recent Developments” for a more detailed description.
The Selling Stockholder may sell some, all or none of their Selling Stockholder Shares. We currently have no agreements, arrangements or understandings with the Selling Stockholder regarding the sale of any of the Selling Stockholder Shares."
This last sale was most likely the MM covering his short position. Having advanced insight to the order book and block trades to sell, "he" trades for his own account (firm's acct) shorting shares at higher prices, probably yesterday's trades, then buys to accumulate shares at lower prices (than the shorted prices) to close his short position. Just one of the ways they make money as MMs...and, perfectly legal.
Last transaction of the period. Can't see it on Level II, Level II doesn't reflect all trades, all bids or asks for both price and qty.
Last trade at: 15:56:39ET; last price 0.0304; last size 2943756; Last exchange OP; Bid price 0.0312; bid size 73244; bid exchange OTPK; ask price .034; last ask size 98246.
Last trade 2,943,756 at .0304. The ask price was .034. Interesting, bid of .0312 at qty 73224.
""The Qualified Financing Registration Statement shall include Registrable Securities only on behalf of one of the Holders, comprised of 25,000,000 shares of common stock currently held by such Holder, which, if such 25,000,000 shares is not equal to $1,000,000 of value valued at the lowest price at which shares of common stock are issued in the Qualified Financing, shall be increased or decreased to a number of shares of common stock equal to $1,000,000 valued at the lowest price at which shares of common stock are issued in the Qualified Financing. Each other Registration Statement to be filed under the Registration Rights Agreement shall include all Registrable Securities, except as described above.""
The above meaning the company agrees to file and pay for additional registration statements, as needed, to enable 3A to sell the 25MM they want or adjusted for additional shares to reach $1,000,000 total compensation. This is a guarantee the company will ensure the common are registered for sale.
See "Selling Stockholders" in S-1 "Selling Stockholder Sales
3A is not under any obligation to sell any shares under the offering. "The Selling Stockholder may sell some, all or none of their Selling Stockholder Shares. We currently have no agreements, arrangements or understandings with the Selling Stockholder regarding the sale of any of the Selling Stockholder Shares."
"This prospectus covers the possible resale by the Selling Stockholder identified in the table below of up to 25,000,000 shares of our common stock. The Selling Stockholder acquired such shares through the partial conversion of a convertible note." Emphasis added (the underline).
15,0249,21 shares traded, 14,683,487 (350 block trades).
yes, 2 & 3 conjecture. typo on my part.
Although, my reason for the $6 offering is:
Hutton warrants..."exercise price of $6.732 (110% of the assumed public offering price per Unit)."
"(5) Includes 25,000,000 shares of common stock being sold to the underwriters by the selling stockholders. In accordance with Rule 457(c) under the Securities Act, the aggregate offering price for the shares to be sold by the selling stockholders is calculated based on the $0.02 average of the high and low prices reported on the OTC Pink Sheets for January 14, 2022." $.02*300 (1/300 r/s) = $6
First paragraph pertaining to block trades are factual. Get a trading platform that enables you to see block trades. Understand what block trades are and what blockhouses do.
Third paragraph was pure conjecture and wondering (as stated) on my part; nothing was presented as a fact in paragraph three. My interpretation of the S-1 filing portrays the a $6 offering. You can read it yourself and make your own appraisal.
Okay, first you are likely right (based upon what you say). That doesn't change what I said that if its them, these trades are being done as block trades, so likely a blockhouse they retained. In any event, someone is selling using block trades.
Second, I would suggest they're smart to sell at these higher levels. The current suggested offering price appears to be $6/share (.015-.02 pre-r/s). Why would they wait for the offering at those levels to bring down the price.
I can't help but wonder if Hutton is considering renegotiating their offering agreement. They might be wondering how they will ever get paid with anticipated warrants at $6.732. Personally, I think it will be challenging to get $6/share given the current circumstances. No one knows what the offering agreement price range is, but I wouldn't be surprised to see it settle in the $4-5 range. I guess we'll know soon when if the company gets around to committing to the offer numbers.
Not MMs accumulating. 92% of trades are block trades. That means a blockhouse has been retained to buy, or in this case sell big blocks of stock. These blockhouses are experts a feeding the trading in a manner to minimize price volatility and get the best deal for their client based upon a pre-agreed price point spread.
7 100 share trades at ask to prop up, then boom...28400 block trade at bid
93% trades today are block trades, most at bid. seems a blockhouse has order to liquidate a big chunk of shares.
volume 420305, with 383194 in block trades, most at the bid. Someone unloading?
Great! I'm not opining of the company quality or prospects, never have. Just an analysis of the price today, which I concluded is too sharp for me.
Look at this from a analyst company " current and historical P/E ratios & CAPE ratios of Growth and Value stocks, calculated using Russell 1000 Growth and Russell 1000 Value indices. The trailing price-earnings ratio of growth equities is currently 35.38 and the corresponding ratio for value stocks is 17.95 (12/31/2021)."
So, if we even use a 35 PE, earnings will have to $12.3MM, a 700% increase. Maybe the hang-up here is what the time period is for the company to achieve such an increase. For me, having been in the business, that's a mountain and then some to climb, but could be done I suppose.
If you use the historical last full year net income margin, which is .0046 of total revenue, without improving margin, which is extremely difficult in this business, their sales would have to be $2,670,807,391. Otherwise, with same sales, the have to increase their margin to .03+, which would be spectacular. FedX net income margin is recently .055%. However, there is a difference in that FedX owns substantial capital producing assets to support their business;i.e. planes, trucks, warehouses, etc - which are likely operated at higher margins. UNQL business appears to be largely a broker business (paper pushers) with virtually no producing capital assets. The point being is the brokerage business is like commissions, and aren't usually very high. So a near 700% margin improvement will be challenging to say the least.
At $.043 price, fully diluted 10B shares, and earnings as reported ye 5/31/21 of $1.725MM is eps of .000175. I simply looked at the PE, which equals around 250. I don't see them improving anywhere close to a reasonable PE like 35.
Don't know why some are upset with me for just doing an analysis.
That's what I thought.
And you say this why? Please explain. It appears you inappropriately directed this comment.
What does the company, it's business model, it's prospects have to do with anything I posted regarding tangible values - more accurately my share price analysis? I'm presuming that you must be quite confident that earnings will soon hit a reasonable level, say 25PE, which is $175,000,000. There is nothing in the documentation that hints at that. Otherwise, everything is just a wish. We're dealing with the here and now and can only do analysis on factual and verifiable data.
No essay, simply cut and paste relevant portions of SEC filed docs that appear to plainly contradict what some have posted. Been looking for actual and factual docs to support some of things said here. For example, if there is an official statement (like an amended Designation) from the company that the preferreds will never be converted, well hey, that changes everything. In my opinion.
Nope, not at all. But, I can understand why some would portray it way. Been around this market for over 35-years and witnessed many (including myself) get burned in countless ways in OTC land. I'm not a professional in anyway shape or form, but I do have a portfolio of experiences, academic, and non-related professions to draw upon.
I'M NOT SAYING THIS IS A BAD COMPANY AT ALL!! I just was trying to understand the current share and if it warranted a starting position...period. In my opinion, given the capital structure, and future actions, I feel the price a bit high for my liking. Remember, no one has to read my posts, or agree, or accept, or buy or sell. If you feel I'm wrong, that's one's prerogative, just ignore my posts. I ignore posts/posters all the time.
I would never have gone into such detail once I made my conclusion, but being bullied by personal attacks, required rebuke.
You realize Hutton is getting shares for the underwriting of the offering as payment?
The company has yet to provide details on offering price and quantity, but at $6.27/share to Hutton, the company must have some idea of where the price will be.
Meanwhile, investors have to wait and hope for the best.
But I am a shareholder now...10 whole shares...yee-haw!