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More on the meeting, posted by Ebo on IV:
"OK guys, I have a few minutes to write some about the annual meeting; it was the fifth one that I attended (but it sure seems like the sixth) if I counted right. As always, I thoroughly enjoyed it all: the meeting, the questions, the discussions with Tony, Hector, Karen, and Richard after the meeting, and of course the people we meet. If you have been reading the comments from my friend Preciouslife1 on the other board, you have gotten a lot of information already. This is the second year that my wife & I attended with Preciouslife. He has been invested for a few years but he isn’t the really long-term-people like many of us here who have waited with bated-breath for every advance, PR, and bit of information on the company for the last 6 or 7 years. I only say that so you will understand that he is more oriented to the technology, the medical impact, the genius and the to-day happenings of the company. Precious is very well read and really keeps up on the medical/pharmaceutical environment in our part of the biotech/genomic universe. One of his comments to Hector drew a commending question about where he had heard that since it only came out last week. Much of his interest in biotech/pharma is not only because of his investments (PPHM is his biggest focus) but of what these little companies can do for mankind. . . . for us. Enough of Preciouslife - I always kid him about being much more verbose than me but I might be catching up to him here. J
That all be said, I’ve really missed the rest of you that I’ve met at the meetings and have shared lunch or drinks with over the years: Maury the Pharmacist, W2P, Arch, Glenda, Uncxman, Tamulonis, Ifida, Retiredinvestor, to name a few. I hope to see you all again.
I was hoping that the presentations would be out on the DNAG website by now but they haven’t updated it yet as far as I can see. The 2006 one is there but not the 2007 one. The first question I asked, even before the meeting, was if the presentation would be on the website and Richard emphatically said yes. So when it is out there, go to it and study it over. It has gobs of great information in it.
Rather than writing a book here on how the meeting progressed and what all was said by whom, I’m going to run down through some of the questions that Chrisbasket and others asked on the other board already. I’ll answer and elaborate on them with my take and I’ll try to keep my opinion separated from what I think they actually said.
“Was there any talk of the Orchid contract which I think expires this fall?”
Not word one was said or asked about the Orchid agreement.
“Was there any talk of how long DNAG can go without doing another reverse split?”
Reverse splits (short of someone saying here is a billion $$ but I want you to RS to reduce the number of shares) are off the table. They are not considering or thinking of one.
“Was there any talk of paying off Dutchess and the other default issues such has Harvard?”
No mention of being in default of anything, if I remember right. They want to get out from under Dutchess and never do another pipe, ever. Duchess screwed them over in more ways than one. For one thing, they reneged on the promised $35 million right around the $8 million mark which helped to put us in this no-funds situation.
Much of what you have/are hearing about financing possibilities is due to, what Richard and company are calling, an evolving environment where the industry and the SEC & others are trying to squash the pipe type of death spirals that these sharks have been using to kill our young companies. Certain rules are changing (to cut the restricted time period on certain (144?) stock placements) and the investment banks are becoming more friendly. Maybe W2P or some of you others more attuned to the financial/investment banking world have more insight to share.
“Was there any talk about details for spinning off DNAPP, particularly what the ratio of shares 'given' to holders of DNAG?”
Yes. The high level strategy has been thought out but the details of how many (or what ratio or %) of shares will go to stockholders and how much to the parent DNAG are not settled. They have a respected New York bank working with them to design the details. However, the environment, necessary time to put it together, and the necessary rule changes will not all come together until the end of 2007. That is why you hear of running out of money by November and the need for a bridge loan, etc. In my previous post (#1892) I discuss the bridge loan and money needed. You might have read the response that Precious posted on the other board where he asked (out of my earshot at the time) Richard how much he needed and (quite logically) Richard gave him a figure that was about twice the minimum they could live with. About those details of the spin-out: One “example scenario” that Richard shared with us was DNAG to keep 20% (plus some royalty on the products) with another 20% going to existing stockholders and the rest to what ever group, company, banking firm, etc. bought the other 60%. Tony, Richard, and Hector would remain on the board as Directors of the Spinout(s) so they could control/guide the destiny inline with the parent and the existing stockholders. There is a lot we could discuss here but it would all be opinion and speculation at this point.
Please, if nothing else, get two take-aways, that should have you smiling, from everything we post about the meeting and from any other information from the presentation or otherwise:
1) The financial environment is getting better and the bankers more friendlily. PIPEs are out; RS's are out.
2) The FDA environment toward DNAG and genomics in general has become much better. When Tony started dealing with the FDA , they had no one who understood what he had (he was so far ahead of the industry) and they had no guidelines about pharmacogenomics so Tony had to write them a draft. Now they have under Lawrence Lesko, a group of knowledgeable genomics people, who know and respect Tony and compnay. Lesko’s group is in fact encouraging the the Biotechs and Pharmas to use pharmacogenomics in their studies and submissions. Also the FDA liked the results/methodology/data submission that DNAG has done on the Statinome project so much that they are telling others to use it as an example on how to do it right.
That's all for now. I will post more in coming days. I just got home from 4 days away, I'm at work for two days (with other activities in the evenings), and we are leaving again tomorrow for 11 days. So I'm real busy right now but will catch up in a few days cause I'll be loafing for much of those 11 days." 
Ann
AI
