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Thanks for sharig Long, hopefully I don't have to regret my recent buys then...
Hi John, welcome back. I took a look at the illustration in your signature. Don't you think we are right on nr. 14 with GNPH ?
I think we are, but I've been wrong before... (still hurts, financially speaking)
About the lekkerbekjes: let's hope so! Really can't think of any reason why GNPH shouldn't do well. I am curios what glen finds out.
Hello Glen, welcome on board. Maybe I should start with a short summary of what I think are the hightlights on GNPH:
Outlook for 2009 (FY ends June 30th): revenues approx 130 million, income 40 milion.
Uplisting in the making, share buyback program ($2 million) has been announced, not yet active, seems to be a problem with transfering cash out of PRC.
Three new drugs should be announced soon. Recent Hongrui acquisition has added 20+ new drugs/traditional chinese medicines. Shares outstanding approx. 10 million.
Possible negatives: see question abh3vt asked earlier. It has to do with a financing deal from may 2008, I think.
Read here on financing deals, see page 25-26-27:
http://www.pinksheets.com/edgar/GetFilingPdf?FilingID=6412655
Outlook, read more here: http://www.pinksheets.com/edgar/GetFilingPdf?FilingID=6427083
Questions or remarks: you're welcome! A lot of info is gathered here in the ibox. Thanks to Longvestor and _bbb_.
Thanks in advance for input!
I was reading some of my old posts as to why I have been adding shares to my portfolio since the reverse merger in 2007 occured. One post in particularly inspires me again: see posting nr. 3790
Remember, those are pre-reverse-split numbers. If only these stockprices came true!!!!
Still think that one day these numbers could (almost) come true. Maybe the PE is a little high instead of 15 I should use 10, but profits etc. look realistic?!
My order got filled 250 @ $3.70. Why did they give'm cheaper than I have ordered? I don't know...
Have sent an other order out: 250 @ $3.75, I still don't see it appear in Level2, how come? Bid there is 3.60 vs. Ask 4.00
Thanks in advance for sharing.
Should be upward and onward from here!
You're right on that Long!
Hope we'll have the money-transfering-problem out of the way quickly, so that share buvback program can start.
My buy was the last one, so we closed at 3.75. It shows buyback program is not functioning yet, problems with money transfering out of PRC still not solved then.
O.k. guys put the blame on me for postponing the uplisting
Guess the shorters are working so they can buyback low enough ... ?!
Cheapie-time: just bought 250 @ $ 3.75
Don't forget _bbb_ he'll probably be willing to lend a hand also...
Thanks and have a nice weekend too.
It is a problem to get money out of the PRC? I have got a solution, buy me a ticket and I'll personally take all I can carry back to the USA...
But seriously, let's hope they will find a solution fast. I haven't found anything on the internet yet. But it is time things got moving...
You are looking at continued listing (when a company is already listed), GNPH comes from the OTCBB so you'll have to look at the table for initital listing (there you can find the $5).
I must admit I am not 100% sure the 90 days apply for GNPH, it depends under which standard admission is requested ?!
Seasoned companies (those companies already listed or quoted on another marketplace) qualifying only under the market value of listed securities requirement must meet the market value of listed securities and the bid price requirements for 90 consecutive trading days prior to applying for listing.
A warm welcome to the new people! Hope the discussion here get's better, the more the merrier!
Yes, that's another trading day that we've succeeded to stay above $5. I think the rule for initial listing says: "for 90 consecutive trading days". If there are 5 trading days in a week that means approx. 18 weeks! that gives us a lot of time to load up with cheapies?
Nice to read:
http://seekingalpha.com/article/121090-genesis-pharma-s-q2-higher-revenue-flat-net-income?source=email
The highlights:
At the end of its recent quarter, Genesis had a substantial $83 million in cash. Current liabilities were just $33.7 million. It generated $26.4 million in cash flow from operating activities in the first six months of its fiscal year.
With six months of its fiscal 2009 completed, the company issued guidance for its full-year 2009 results. It called for revenues to total between $122 and $130 million, with operating income of between $40 million and $43 million. These numbers do not include any contribution from the Hongrui acquisition.
With 10.4 million shares outstanding (fully diluted) and a current stock price of $4.99, Genesis has a market capitalization of $52 million – less than its current cash level.
Maybe later on a transcript of today's CC can be found here:
http://seekingalpha.com/symbol/gnph.ob/transcripts
Genesis Pharmaceuticals Reports Results for the Second Quarter of its Fiscal Year 2009
LAIYANG, China, Feb. 17 /PRNewswire-Asia-FirstCall/ -- Genesis Pharmaceuticals Enterprises, Inc. (OTC Bulletin Board: GNPH - News; "Genesis" or the "Company"), a U.S. pharmaceutical company with its principal operations in the People's Republic of China, today announced its financial results for the second quarter of its fiscal year 2009 ended December 31, 2008.
Second Quarter of Fiscal Year 2009 Highlights
-- Revenue was $32.9 million, up 24.1% from the corresponding quarter
ended December 31, 2007
-- Gross profit was $25.8 million, up 30.8% from the corresponding
quarter ended December 31, 2007, and gross margin was 78.3%,
compared to 74.3% in the corresponding quarter ended December 31,
2007
-- Operating income was $11.4 million, up 34.7% from the corresponding
quarter ended December 31, 2007
-- Net income was $5.4 million, or $0.11 per fully diluted share, up
from $5.2 million, or $0.02 per fully diluted share, a year ago
-- Non-GAAP adjusted net income was $7.0 million, or $0.71 per weighted
average share, up 28.8% from non-GAAP adjusted net income of $5.4
million, or $0.56 per fully diluted share, for the quarter ended
December 31, 2007
-- The board of directors approved a $2 million share buyback program
-- An Assets Transfer Contract was signed in January to acquire
Shandong Hongrui Pharmaceutical Factory ("Hongrui")
-- A new website was launched: http://www.genesispharmaceuticals.com/
"We are pleased to report that Genesis Pharmaceuticals continued to show solid financial performance in the second quarter of our fiscal year 2009. Increased sales of Itopride Hydrochloride Granules and Baobaole Chewable Tablets led to strong revenue and operations income growth," said Mr. Wubo Cao, Chairman and CEO of Genesis. "And, sales of our latest over the counter product, Radix Isatidis Dispersible Tablets, began to contribute to revenue in the second quarter."
Second Quarter of Fiscal Year 2009 Results
Total revenue for the three months ended December 31, 2008 was $32.9 million, an increase of $6.4 million, or 24.1%, from $26.5 million for the three months ended December 31, 2007. Revenue increased mostly because of strong sales for two of the Company's products, Itopride Hydrochloride Granules and Baobaole Chewable Tablets. Sales also grew quickly for Radix Isatidis Dispersible Tablets, a drug launched in the first quarter of the Company's fiscal year 2009. Increased revenue was partially offset by decreased sales of Clarithromycin Sustained-Release Tablets.
Gross profit in the second quarter of the fiscal year 2009 was $25.8 million, an increase of 30.8% from $19.7 million for the prior year's corresponding period. Gross margin increased to 78.3% from 74.3% for the prior year's corresponding period. Gross margin increased because of increased sales of higher margin over the counter products, Baobaole chewable tables and Radix Isatidis Dispersible Tablets, and carefully managed purchases of raw materials.
Research and development costs totaled $1.1 million for the three months ended December 31, 2008, compared to $0.9 million for the three months ended December 31, 2007. Two new cooperative research and development agreements were signed to support university research and development projects in the latter part of fiscal year 2008 for which the Company makes monthly payments.
Selling, general and administrative expenses were $13.3 million for the three months ended December 31, 2008, up 28.8% from $10.3 million in the three months ended December 31, 2007. Salaries, wages and related benefits increased by 46.1% from the three months ended December 31, 2007 to $9.2 million for the three months ended December 31, 2008 primarily due to an increase in commissions as a percentage of sales paid to sales representatives and increased sales volume.
Income from operations was $11.4 million for the three months ended December 31, 2008, a 34.7% increase from $8.5 million for the three months ended December 31, 2007.
Net income for the three months ended December 31, 2008 was $5.4 million, $0.11 diluted earnings per share, compared to $5.2 million, $0.02 diluted earnings per share, for the three months ended December 31, 2007.
While the Company had a $2.9 million increase in income from operations, other expenses increased by $2.9 million. The increase in net other expenses was primarily due to increases in realized and unrealized losses of $1.3 million on security investments, an increase in interest expense and amortization of debt discounts related to financings in November 2007 and May 2008 of $2.7 million, and accounting for expenses acquired from discontinued operations associated with the Company's reverse merger on October 1, 2007. Excluding an unrealized net loss on security investments of $422,652, and a non-cash charge for amortization of debt discount and issuance costs, and interest expense related to convertible debentures of $1.7 million, non-GAAP adjusted net income for the three months ended December 31, 2008 was $7.0 million, or $0.71 per share, a 28.7% increase from non-GAAP net income of $5.4 million, or $0.56 per share, for the three month period ended December 31, 2007.
Six Month Operating Highlights
Total revenue for the six month period ended December 31, 2008 was $60.5 million, up 40.2% from $43.2 million for the six month period ended December 31, 2007.
Gross profit for the six month period ended December 31, 2008 totaled $47.6 million, up 49.9% from $31.8 million for the six month period ended December 31, 2007. Gross profit margin was 78.7% for the six month period ended December 31, 2008, compared to 73.6% for the corresponding period in 2007.
Operating income for the six month period ended December 31, 2008 totaled $18.8 million, a 39.9% increase from $13.4 million in the corresponding period in 2007. The Company's operating margin kept stable at around 31.0%.
Net income for the six month period ended December 31, 2008 was $8.5 million, $0.41 diluted earnings per share, compared to $8.4 million, $0.53 diluted earnings per share, for the corresponding period in 2007.
Excluding an unrealized net loss on security investments of $1.5 million, and a non-cash charge for amortization of debt discount and issuance costs related to convertible debentures of $2.0 million, non-GAAP adjusted net income for the six months ended December 31, 2008 was $12.0 million, or $1.23 per share, a 38.4% increase from non-GAAP net income of $8.7 million, or $1.46 per share, for the six month period ended December 31, 2007.
Financial Condition
As of December 31, 2008, the Company had $83.0 million in cash and restricted cash. Working capital was $83.7 million, up from $72.5 million as of June 30, 2008. Current liabilities were $33.7 million and long-term debt consisted of $4.0 million in convertible debt. Shareholders' equity was $102.9 million. Future contractual obligations within a one year period include $8.8 million in bank debt and $4.4 million in research and development contractual agreements.
The Company generated $26.4 million in cash flow from operating activities in the first half of the fiscal year 2009, compared to $2.9 million for the first six months of 2007. The Company believes it has enough cash to meet its future cash needs and successfully implement its growth strategies.
Recent Events
In January, the Company announced that it has retained KPMG Huazhen to help the Company develop a SOX 404 compliance program. This will include an examination and report on the adequacy of the Company's internal financial reporting and control procedures, and recommendations on how to implement best practices in the areas of operations and financial risk reporting and control.
In January, the Company announced that it signed an Assets Transfer Contract to acquire Hongrui, including all of Hongrui's manufacturing and office buildings, land, equipment and inventories. This acquisition also includes all the rights to manufacture and distribute Hongrui's 22 Traditional Chinese Medicines. The total purchase price will be RMB110 million (approximately $16.1 million) consisting of RMB66 million in cash (approximately $9.6 million) and 643,651 shares of Genesis' common stock. The Company has valued the equity consideration to be paid in this transaction at approximately $12.2 million based on the closing price of the Company's common stock on January 23, 2009.
The acquisition of Hongrui will increase the Company's product portfolio from 6 to 28 products, and will increase the Company's presence in the over the counter drug market while helping balance Genesis' over the counter sales with its sales of prescription drugs. Genesis will manufacture, label and distribute the drugs it purchased from Hongrui under its own brand name, "Jiangbo."
"We are excited by the opportunity to expand our over the counter presence by selling Hongrui's drugs. We expect that sales of Hongrui products will have an immediate positive impact on our revenue growth. Because our attention is no longer being diverted by the demands of arbitration procedures, we believe that we can return our attention to growing Genesis and developing our Hongrui purchase."
The Company participated in a number of American Arbitration Association ("AAA") proceedings during the latter part of 2008 and the beginning of 2009. In February 2009, the Company was notified by an AAA Panel that it awarded a total of $980,070 to claimants in the last remaining joint arbitration proceedings against the Company. These claimants had originally sought over $13 million from the Company. Once this joint claim is satisfied, the claimants who brought the arbitration proceedings against the Company will no longer be able to seek Genesis' shares or any other property which was originally sought in the arbitration proceedings brought by them.
"As part of our ongoing process of reviewing and improving our operational and financial reporting and controls, we engaged KPMG Huazhen to help develop a SOX 404 compliance program for us. We expect that the ideas which are generated during this engagement will help us in our ongoing preparations for upgrading the listing of our shares to the NASDAQ Capital Market."
Business Outlook and Guidance
In January of 2009, China's government announced that it will spend more than $120 billion over the next three years to expand insurance coverage, revamp public hospitals and improve access to medical treatment. Genesis expects these government programs to create favorable market conditions for the Company, especially because most of the Company's products are used to treat commonly occurring diseases.
The government aims to extend medical insurance to 90% of the population by 2011 and make "basic health-care services" available to all of China's 1.3 billion citizens. Making medical services available to more people is line with the Company's marketing strategy which includes increasing sales in rural markets.
"Sales growth for Baobaole Chewable Tablets and Radix Isatidis Dispersible Tablets confirms that there are tremendous market opportunities for over the counter products in China. Our acquisition of Hongrui comes at a time when the Chinese government is about to increase its spending on drugs. We believe that Genesis is well positioned to grow its sales and market reach, and we are confident that we will meet our fiscal year 2009 guidance," concluded Mr. Cao. "We expect revenue for fiscal 2009 to be from $122.0 to $130.0 million, and operating income to be from $40.0 to $43.0 million, excluding the impact of the Hongrui purchase."
Conference Call
Genesis Pharmaceuticals Enterprises, Inc. management will host a conference call at 9:00 a.m. Eastern Time on Tuesday, February 17, 2009 to discuss financial results for the quarter ended December 31, 2008. Mr. Wubo Cao, Chairman and CEO, Ms. Elsa Sung, CFO, and Mr. Haibo Xu, COO, of Genesis will be present for the conference call. To participate in this live conference call, please dial the following number five to ten minutes prior to the scheduled conference call time of 9:00 a.m. Eastern Time on Tuesday, February 17, 2009: (888) 419-5570. International callers should call (617) 896-9871. The Conference Passcode is 694 125 61. Replay of the conference call will be available from Tuesday, February 17, 2009 at 11:00 a.m. Eastern until Tuesday, March 3, 2009. To access the replay, call (888) 286-8010. International callers should call (617) 801-6888. The Conference Passcode is: 398 758 52.
Use of Non-GAAP Financial Information
This press release includes certain financial information, adjusted net income and adjusted fully diluted earnings per share, which are not presented in accordance with GAAP. Adjusted net income was derived by taking earnings before unrealized losses on trading securities and non-cash amortization of debt discount and debt issuance costs related to convertible securities. The Company's management believes that these non-GAAP measures provide investors with a better understanding of the Company's historical results from its core business operations. To supplement the Company's condensed consolidated financial statements presented on a GAAP basis, the Company has provided non-GAAP financial information, which is adjusted net income and adjusted earnings per share, excluding the impact of these items in this release. The non-GAAP information is not meant to be considered in isolation or as a substitute for GAAP financials. The non-GAAP financial information provided by the Company may also differ from non-GAAP information provided by other companies. A table below provides a reconciliation of the non-GAAP financial information to the nearest GAAP measure.
About Genesis Pharmaceuticals Enterprises, Inc.
Genesis Pharmaceuticals Enterprises, Inc. is a U.S. public company engaged in the research, development, production, marketing and sales of pharmaceutical products in the People's Republic of China. Its operations are located in Northeast China in an Economic Development Zone in Laiyang City, Shandong province. Genesis is a pharmaceutical company in China producing western and Chinese herbal-based medical drugs in tablet, capsule, and granule form. For more information, visit: http://www.genesispharmaceuticals.com/
Safe Harbor Statement
Certain statements in this press release that are not historical facts are "forward-looking statements" within the meaning of the Private Securities Litigation Reform Act of 1995. Such statements are not guarantees of future performance and are subject to risks and uncertainties that could cause the Company's actual results and financial position to differ materially from those included within the forward-looking statements. Forward-looking statements involve risks and uncertainties, including those relating to the Company's ability to introduce, manufacture and distribute new drugs. Actual results may differ materially from predicted results, and reported results should not be considered as an indication of future performance. The potential risks and uncertainties include, among others, the Company's ability to obtain raw materials needed in manufacturing, the continuing employment of key employees, the failure risks inherent in testing any new drug, the possibility that regulatory approvals may be delayed or become unavailable, patent or licensing concerns that may include litigation, direct competition from other manufacturers and product obsolescence. More information about the potential factors that could affect the Company's business and financial results is included in the Company's filings, available via the United States Securities and Exchange Commission.
http://finance.yahoo.com/news/Genesis-Pharmaceuticals-prnews-14379157.html
$4.99 WTF now we have tot start counting off the 90 day period again ?!
Let's hope we all learn by discussing this here. But I am sorry (for you and for myself) that I cannot answer your questions for 100% sure. I always like to fully understand what I read, but that will not be the case because I have a technical education. I lack a lot of knowledge on financial matters...
1. I don't know for sure if Pope can convert whenever they want.
2. I think they still have to pay the 14 mill. in taxes, that's why it is mentioned under liabilities?
http://www.ameritradefinancial.com/educationv2/fhtml/learning/ubalsheets.fhtml
3. I don't understand why you state "only 7M increase", I doubt if a bigger increase would have been better.
4. Retained earnings are the amount of money that a company keeps for future use or investment. Another way to look at it is as the earnings left over after dividends are paid out. (I've googled it)
I hope the conference call will bring some clarity. I guess some readers will call in, maybe they'll ask some of our questions ?! Hope a trancript will be published just like last time.
I think that GNPH and Mr. Cao have a lot of faith in achieving a certain fully diluted EPS. Will they be right, even if last quarter's fully diluted EPS was only $0.11? If they don't seem to worry, why should we?
In connection with the May 2008 Financing, Mr. Cao, the Company’s Chief Executive Officer and Chairman of the Board, placed 3,750,000
shares of common stock of the Company owned by him into an escrow account pursuant to a make good escrow agreement, dated May 30, 2008
(the “Make Good Escrow Agreement”). In the event that either (i) the Company’s adjusted 2008 earnings before taxes is less than $26,700,000
(“2008 Guaranteed EBT”) or (ii) the Company’s 2008 adjusted fully diluted earnings before taxes per share is less than $1.60 (“2008 Guaranteed
Diluted EBT”), 1,500,000 of such shares (the “2008 Make Good Shares”) are to be released pro rata to the May 2008 Investors. In the event that
either (i) the Company’s adjusted 2009 earnings before taxes is less than $38,400,000 (“2009 Guaranteed EBT”) or (ii) the Company’s adjusted
fully diluted earnings before taxes per share is less than $2.32 (or $2.24 if the 500,000 shares of common stock held in escrow in connection with
the November 2007 private placement have been released from escrow) (“2009 Guaranteed Diluted EBT”), 2,250,000 of such shares (the “2009
Make Good Shares”) are to be released pro rata to the May 2008 Investors. Should the Company successfully satisfy these respective financial
milestones, the 2008 Make Good Shares and 2009 Make Good Shares will be returned to Mr. Cao. In addition, Mr. Cao is required to deliver
shares of common stock owned by him to the Investors on a pro rata basis equal to the number of shares (the “Settlement Shares”) required to
satisfy all costs and expenses associated with the settlement of all legal and other matters pertaining to the Company prior to or in connection
with the completion of the Company’s October 2007 share exchange in accordance with formulas set forth in the May 2008 Securities Purchase
Agreement (post 40-to-1 reverse split).
BigGreen101, have you read this post on another board? I think it could be a good answer on your very legit question
Excuse me, the basic eps is $.55 per share-the diluted is that low because of the allowance for debt issuance from the private placement to Pope for LFAA. The allowance is IF CONVERTED. It won't be converted because the company is meeting all of its requirements to prevent it from converting. Bottom line is shareholder equity, which is almost $103 million, and cash on the books, which is $76 million. The company's market cap right now is a little over $50 million, absurd. GNPH has a bright future and if the pps goes down I'm buying more cheap shares.
Link:
http://messages.finance.yahoo.com/Stocks_%28A_to_Z%29/Stocks_G/threadview?m=te&bn=31759&tid=5782&mid=5782&tof=2&frt=1#5782
My guess is they are writing it off now so they start with a clean slate before uplisting...
BigGreen101, I think this line says it all:
"The increase in net other expenses was primarily due to increases in realized and unrealized losses on our security investments of $1.3 million, the increase in interest expense and amortization of debt discounts related to our financing in November 2007 and May 2008 of $2.7 million, and loss from discontinued operation of 1.6 million for the six months ended December 31, 2008."
Here is the rest of the explanation?
In connection with the private placement, the Company paid the placement agents a fee of $250,000 and incurred other expenses of $104,408, which were capitalized as deferred debt issuance costs and are being amortized to interest expense over the life of the debentures. For the six months ended December 31, 2008 and 2007, amortization of debt issuance costs related to the November 2007 Purchase Agreement was $59,068 and $18,049, respectively. The remaining balance of unamortized debt issuance costs of the November 2007 Purchase Agreement at December 31, 2008 and 2007 was $228,068 and $336,359, respectively. The amortization of debt discounts was $319,917 and $254,630, respectively, for the six months ended December 31, 2008 and 2007, which has been included in interest expense on the accompanying consolidated statements of income. The balance of the unamortized debt discount was $4,134,724 and $4,328,704 at December 31, 2008 and June 30, 2008, respectively.
I do not know where the loss from discontinued operations comes from?
Is this the explanation?
"Note 5 - Discontinued operations
In connection with the reverse merger with Karmoya on October 1, 2007, the Company determined to discontinue its operations of business development and marketing, as it no longer supported its core business strategy. The discontinuance of these operations did not involve any sale of assets or assumption of liabilities by another party. In conjunction with the discontinuance of operations, the Company determined that the assets related to the Company’s business development and marketing operations were subject to the recognition of impairment. However, since the related assets are continuing to be used by the company and its subsidiaries, the Company determined that there had been no impairment. The remaining liabilities of the discontinued operations are reflected in the consolidated balance sheets under the caption "liabilities assumed from reorganization" which amounted to $1,771,650 and $1,084,427 as of December 31, 2008 and June 30, 2008, respectively.
In accordance with SFAS 144, “Accounting for the Impairment or Disposal of Long-Lived Assets,” the results of operations of a component of entity that has been disposed of or is classified as held for sale shall be reported in discontinued operations. Accordingly, the results of operations of the business development and marketing operation segment are reported as discontinued operations in the accompanying consolidated statements of income for the six months ended December 31, 2008. As the accompanying consolidated statements of income for the six months ended December 31, 2008 reflect the results of operations for Karmoya and its subsidiaries, the discontinued operations of the Company did not have any impact on the consolidated statements of income for the period presented.
"
Maybe the following that I think off can be part of the explanation of other expenses ? I don't know how that works, or where this devaluation should be found in the report.
The shares GNPH holds in LTUS and GHII have become less value because off the steady decline of pps of both stocks.
So I think there is nothing fishy, but would be at ease when you come to the same conclusion after reading the report.... (I am not an accountant or something like that!)
You are both right ?! $0.55 is the quarterly basic EPS, for the 2nd quarter. Multiplying that by four gives the annual EPS of $ 2.20. But then the four quarters would have to have the same net-income and same amount of shares..
For the half year, you can see that we have a basic EPS of $ 0.87, multiply that by two and that gives an annual basic EPS of 1.74. Not as good as it was because the same period in 2007 gave an eps of $1.42 x 2 = 2.84 !!!
But then there is the diluted EPS, for last quarter that was $ 0.11, a lot lower because of the fact that we have to substract approx. 4.9 milllion (debt discount if converted) of the net-income.
BigGreen101: another point about the diluted eps.
The substraction is done because of the november 2007 financing of Pope (5 million), could it have something to with that? Because of approx 5 million warrants/options that can be excercised?
By the way, I am not going to call in at the CC, my spoken english isn't that good...
BigGreen101, have you read page 18? To calculate the diluted eps, an amount of 4 million is substracted because of "Subtract: Debt discount if converted", I don't know what it means yet.
In November 2008, the Board of the Directors of the Company authorized a share buyback program to purchase the Company’s common stock in the open market with a $2,000,000 limitation. As of December 31, 2008, the Company has not purchased any shares in the open market.
Legal proceedings
The Company is involved in various legal matters arising in the ordinary course of business. The following summarizes the Company’s pending and settled legal proceedings:
Fernando Praca, Plaintiff v.s. EXTREMA, LLC and Genesis Pharmaceuticals Enterprises, Inc.- Case No. 50 2005 CA 005317, Circuit Court of the 15 th Judicial Circuit in and for Palm Beach County, Florida
Fernando Praca, former Director and former President of the Company’s discontinued subsidiary, Extrema LLC, filed an action in Dade County, Florida against Extrema, LLC and the Company in June 2005 relating to damages arising from the sale of Extrema LLC to Genesis Technology Group, Inc. Fernando Praca had filed a Motion of Temporary Injunction but had not proceeded to move this case forward. The plaintiff has decided to reinitiate the legal action in March 2008. In July 2008, the Company and Fernando Praca entered into a Settlement Agreement whereby Fernando Praca agreed to dismiss this action against the Company and to surrender to the Company for cancellation, 100,000 shares of common stock in the Company held by him. The Company agreed to provide Fernando Praca with a legal opinion of its counsel removing the restrictive legend on the 1,269,607 shares of common stock held by Fernando Praca. As of December 31, 2008, this matter has been settled.
CRG Partners, Inc. and Capital Research Group, Inc. and Genesis Technology Group, Inc., n/k/a Genesis Pharmaceuticals Enterprises, Inc. (Arbitration) - Case No. 32 145 Y 00976 07, American Arbitration Association, Southeast Case Management Center
On December 4, 2007, CRG Partners, Inc. (“CRGP”), a former consultant of the Company, filed a demand for arbitration against the Company alleging breach of contract and seeking damages of approximately $10 million as compensation for consulting services rendered to the Company. The amount of damages sought by the claimant was equal to the dollar value of 29,978,900 shares of the Company’s common stock (Pre 40-to-1 reverse split) in November 2007, in which the claimant alleged were due and owing to CRGP. On December 5, 2007, the Company gave notice of termination of the relationship with CRG under the consulting agreement. CRGP subsequently filed an amendment to the demand for arbitration to include Capital Research Group, Inc. (“CRG”) as an added claimant and increased the damage amount sought under this matter to approximately $13.8 million.
The Company subsequently filed counter claims in reference to the aforementioned allegations of breach of contract. In February 2009, the Company was notified by the arbitration panel of American Arbitration Association (the “Panel”) that the Panel awarded CRG and CRGP jointly, a net total of $ 980,070 (the “Award”) to be paid by the Company on or before February 27, 2009. Once the Award is satisfied, CRG and CRGP would have no further claims against the Company’s common stock or other property that were the subject of the arbitration. The amount has been charged to operations for the six months ended December 31, 2008, and is included in liabilities assumed from reorganization as of December 31, 2008.
China West II, LLC and Genesis Technology Group, Inc., n/k/a Genesis Pharmaceuticals Enterprises, Inc. (Arbitration)
In June 2008, China West II, LLC (“CW II”) filed a Demand For Arbitration with the American Arbitration Association (“AAA”) the case of CW II and Genesis Technology Group, Inc. n/k/a Genesis Pharmaceuticals Enterprises, Inc. and Joshua Tan. In that matter, CW II sought breach of contract damages in connection with the Company’s October 2007 reverse merger from the Company and Joshua Tan, former director of the Company, jointly and severally for approximately $6,700,000 estimated by CW II.
In January 2009, the Company received a written notice from the Panel that CW II had withdrawn the Demand for Arbitration without prejudice.
China West, LLC and Genesis Technology Group, Inc., n/k/a Genesis Pharmaceuticals Enterprises, Inc. (Arbitration)
In November 2008, China West, LLC (“CW”) filed a Demand For Arbitration with the American Arbitration Association the case of CW and Genesis Technology Group, Inc. n/k/a Genesis Pharmaceuticals Enterprises, Inc. and Joshua Tan. In that matter, CW sought from the Company in the amount of approximately $7,500,000 for breach of contract and fiduciary duty damages in connection with the Company’s October 2007 reverse merger.
In February 2009, the Company received a written notice from the Panel that CW II had withdrawn the arbitration without prejudice.
So, NO more legal proceedings pending
CASH, end of the period $ 76,379,860
BASIC EARNINGS PER SHARE $ 0.55
Management believes that net income will improve in the remainder of fiscal year 2009 as we have recently completed the Hongrui acquisition and expect to generate additional sales from the products acquired in the acquisition. We also intend to continue to strengthen our sales efforts to gain market share and control our spending.
http://www.marketwatch.com/news/story/10-q-genesis-pharmaceuticals-enterprises-inc/story.aspx?guid=%7B2EECEEB2-2EC6-4D34-88D9-39C88DAE8173%7D&dist=msr_1
Here are the numbers, right on track on the first glance.
GROSS PROFIT. Gross profit was $47.6 million for the six months ended December 31, 2008 as compared to $31.8 million for the six months ended December 31, 2007, representing gross margins of approximately 78.7 % and 73.6%, respectively. Gross profit was $25.8 million for the three months ended December 31, 2008 as compared to $19.7 million for the three months ended December 31, 2007, representing gross margins of approximately 78.3% and 74.3%, respectively. The increase in our gross profits was mainly due to the higher volume of sales with higher margin products and decrease in raw material prices.
http://biz.yahoo.com/e/090213/gnph.ob10-q.html
http://www.allstocks.com/level2quotesotcbb1.html
What if the shorties know more than we do? I think it is very strange that especially with the low pps in last weeks, short selling went up so much.
As always time will tell...
There will be no trading whatsoever on Monday (Presidents Day)?
BMUR (Brean Murray) is the company that, until a few days, gave GNPH a target shareprice of $13. They where at the ask at $15 in the levelII book.
Since the claim has been settled they haven't given a new or updated target (see link below). And now they are on the ask at $ 5.50, what's going on?
http://breanmurraycarret.com/pdf/ResearchUniverse.pdf
I think you are right about that $2 million, so that means they can be buying at least 400k shares.
Average daily volume is 2k (?) so that should be enough to help keep the pps at or above $5 for 90 days.
I think uplisting is not uncertain anymore, May '09 (to me) seems likely. Maybe I should be buying some extra shares ?!?
Now let's hope this time the train really gets rolling !
Seems gnph is now buying their own shares back. Bid hasn't been lower than $5 since a few days. Guess we can count down the 90 days from now!? So we will uplist in May 2009...or am I too optimistic?
Bring out the numbers so we have something to study on this weekend!
Conference call on the earnings on Tuesday Feb 17th.
Indeed they do deserve congratulations, so here you go! Good luck on the job guys.
(Do they get paid in shares GNPH? If so, can I apply for such a job?)
Hello wpkt, would you like to introduce yourself since you are new on the board? Are you a shareholder?
Relax guys, we're in it to win it!