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Inventor, it's true I should not have said 10M in "debt" as nothing needs to be paid back. The proper term should have been 10M in "expense" on their books for the undervalued convertible notes.
For the benefit of all and any interested, I went back to the past 2 Qtr 10Qs to put together a simplified overview of some of the cash/share transactions and put them into an ongoing spreadsheet to track patterns going forward. In re reading some of the previous PRs in light of more recent developments, I saw both encouraging and discouraging items, but the details of the contracts with the Ichims brought on some new light as well as other PRs.
Here's some numbers to chew on:
Amt Cash In
$25,650 Loan Koos Mar Qtr 15
$264,000 Loan Bio Tech Mar Qtr 15
$775,000 Conv notes various Mar Qtr 15
$90,000 Conv notes Jun Qtr 15
$1,154,650 Total cash in
Paid out
60,425 Debt Mar Qtr 15
Notes Change
133,751 notes payable 30-May-15
103751 notes payable -30,000 30-Jun-15 common shares issued
Qtr loss; Exp less than value conv notes; Other expenses Period ending
$9,032,092 $8,179,432 $852,660 Mar Qtr 15
$1,562,371 $937,425 $624,946 Jun Qtr 15
$10,594,463 $9,116,857 $1,477,606 Running total
Cash on Hand Used in period Explanation
521,974 30-Mar-15
208,582 30-Jun-15 403,392 $90,000 conv notes
Monthly Expenses
$10,000 Thomas Ichim Salary (can be paid in shares)
$6,000 Christine Ichim Ditto
$13,500 Todd Cavens Ditto
$15,000 Koos Ditto
$3,100 HBRI for lab space and services
$5,000 Rent to ENTB
$52,600 Monthly basics
Some interesting factors you might have forgotten.
PR a while back on new lab space stated:
Dmort, fill me in on your outlook. How will the preferred shares going live automatically bring in cash without further need of dilution? Right now the issued preferred shares belong to individuals, right and the value of the company is divided by the number of outstanding and issued shares (both preferred and common), so to raise more cash, RGBP would need to issue either more preferred shares and sell them or more common shares and sell them (dilution).
Or do you see another way?
Thanks. Didn't see the OS in the 10Q when glancing through. The 90K was in Qtr ending June 30th. Initial Kesari payment should also have taken place in Qtr ending June 30th.
On Aug 10th, we will be 2 months out from the PR about Kesari taking on the proof of concept effectiveness of dCellVax in vitro with possible expansion to brain cancer and rewriting and/or new IND. Don't know how long his experiments will take, but let's hope we get some good news on that, dCellVax and the 7 possible NR2F6 compound "fits" for cell differentiation and new IND all within mid-Sept timeline for HemaX submittal.
Cash on hand should suffice until then and we can hope and pray that Koos will have enough shares and money in pocket to let the rest of us regain some of our BMSN and RGBP losses with allowing the PPS to rise before striking new deals to raise money and that the money raised will be either with straight loan line of credit or an fixed price release of shares above .50.
Not sure what you are asking with the 2 dates, but would like to know OS as of June 30, 2015.
From reading of 10Q and past docs, seems to me RGBP "raised" $775,000 between Jan 2015 and March 2015, then another $90,000 between April and June. While most of these were convertible notes, it appears some were just loans. Of that, only $208,000 is left. Most has gone to salaries and CRL testing most likely as well as paying off some debt.
My real complaint was the way the deals were made with "Angel" investors at heavily undervalued prices guaranteeing lucrative deals for them and little money beyond the testing phase needed for HemaX. We also need money to have dCellVax and other pipeline product research go forward with GLP practices.
Unless Koos changes the structure of future money raising deals, only he and his 3-10 buddies will benefit big as they guarantee immediate gains while diluting the shares and leaving the PPS with heavy overhead pressure from the poor financial statements. He added over 50M shares in a way that created 10M in debt and less than 1M in cash. Had he pursued the 20M credit loan that supposedly was previously guaranteed for BMSN, then we could have gotten a million dollars in cash with a million dollars in debt with 100,000 - 200,000 in expense per year.
Instead, Koos has guaranteed about 5 people a $500,000 profit each and we, the other shareholders are left still languishing, wondering if he will ever care about people investing in his company or only in his small circle of cohorts?
Most of the debt is due to the convertible shares they gave away that could be converted at 65% discount from lowest price in previous 30 day period which ended up being .028/share conversion.
CPA will need to enlighten us why shares given to angel investors in return for money and already converted show up as debt, but that is my reading. They raised $865,000 and incurred over 9 million in debt on "undervalued shares", so it seems Koos and others who loaned $50,000 will get at least a $500,000 return. In that sense, he doesn't need to raise the PPS, though every cent he raises it will be more money in his pocket. With another $90,000 in covertible loans this quarter, it will be interesting to see what the official OS count is as of June 30th.
Anyone?
The previous deal for $20M credit loan expired last April I believe. A new contract would have to be written up. That said, if they get HemaX approval, then Orphan Drug status will be a part of it shortly thereafter and with other promising pipeline products, if price goes over $1/share or even 50 cents they could get a partner to sell 10 million more shares at .50 or above and have all the money needed for the trials. If then, while trials are under way, they get another IND FDA approval, there will be plenty of investment opportunities, partnerships or banks to get the money for trials I think.
Do any moderators have time to update the information on this board. Now that the RGBP website has been updated, would be nice to update the product pipeline here (could be cut/paste), the additional members of the advisory board contracted in 2015 as well as the employees (scientists) themselves.
Would be helpful to gain and hold new investors that will be landing on the board once the HemaX CRL studies are filed, Orphan Drug Status if safety tests are approved etc.
Suhy and Min are no longer at the front of the research process.
I don't believe this indicates a trial in progress, but a summary statement of the goal.
Hey Sid, I hope you loaded up at near .10 and weren't wanting for .08!
I agree, the 79,000 shares at .109 was an early morning purchase in my opinion that didn't get filed until now. Other big chunks being bought of 10,000-40,000 shares at a time. A good sign (not for me wanting to buy at lower prices, but if it takes off from here, so be it).
At some point, those expecting the complete fall back to start of day price levels will get caught as I expect more than HemaX good news between now and mid-Sept, and I suspect at some point, PRs with substantial material news will be released back to back or in near term time frames to bolster the PPS.
Need a week to get funds cleared to buy more shares. Don't know if I'll make it.
Today's news is a great relief and a good sign of better things to come. We have confirmation that initial safety data, even at 10 times the proposed human dosage does not indicate any safety issues.
Now, this data will be sent to FDA while the safety tests continue. Can anyone comment on the significance of sending the 14 day data to FDA while the testing continues? Could the FDA, in light of the 14 day data, request any changes to the experiments? Or did the FDA want the 14 day data because that data alone fulfills some aspect of the IND and will foster faster review when all data is complete? Just find it interesting that both PRs mention gathering the 14 day data to send to FDA while full experiments will not be concluded for several weeks.
Thanks for the responses, Gotinearly as well.
Reading the dosing PR once again strikes me as intersting:
July 9, 2015 PR:
PPS is certainly a disappointment. Can't think of any positive reasons why the PPS would drop when we are possibly within a week of safety test result indicators. Of course, if lab people at CRL know that the safety test results are not good, that could leak out to cause a steady sell off since we are dependent on those results currently for positive move up notwithstanding some other seriously positive development.
I certainly hope we do not get bad news, but why this is dropping at this point if news is not bad is beyond me.
Why would we want employees paid with shares with the share price at .13? The whole point of raising funds in early January when the scientists and CFO were hired was to have cash to cover salaries and other expenses. They had over $500,000 in cash and we will see in a few weeks with the June financials how much of that remains (payment of cash to CRL).
I don't want employees paid with shares each month - constant dilution of shares. To the extent we can, we want share stability, development, cash on hand until FDA approval for trials. Then on release of that news, company can raise funds at higher price to fund the trials. Koos cannot pay himself with RGBP shares for whatever he does for Zander. He will pay himself with Zander shares.
VNDM back on ask might actually be a very good sign this time.
Remember Kesari signed a contract with RGBP that pays him additional shares upon completing tests that show in vitro effectiveness of dCellVax.
June 10, 2015 PR
Also, for the benefit of those more recent to the board, I believe it was last May, after the RGBP spin off and anticipated approval of HemaX that there was a PR about the FDA requesting more testing. In that PR we were informed that the testing requested would be more stringent, but that in the long term, the extra protocol and analysis, if successful, would benefit RGBP as well because the same testing results could be used or substantiate further expansion of the use of HemaX and new INDs.
So that is another aspect to keep in mind - the success of this CRL safety testing would be the basis for further HemaX development, not just for aplastic anemia, but other applications as well.
Dmort, I wouldn't expect this PR to have a substantial impact on the PPS because it only states that dosing has been completed. The PR does not give any indication of results as it is too early to know. However, it does tell us that data will be collected and analyzed after 14 days which will be submitted to FDA. That surprises me as I expected much longer testing for results.
It does open the possibility for a PR in 2 weeks or so on the safety results. If that PR is glowing with positive results, then I would expect the PPS to move substantially.
That said, the company may also delay news until August and the timing of angel investor partial liquidation.
Today's PR is merely a shareholder update or progress report.
Well, today's PR rather confirmed my initial expectations posted a couple months ago. While today's PR timeframe may be seen as a type of "failure" by some, it wasn't completely unexpected.
What I can't understand is why people would waste 2 years of their life following something they have no interest in purchasing?
That is a definite possible reality. Let's hope that if Koos waits until August-September and the release of 1/6 of convertible shares, that he has stored and stacked as much as possible all "new" and "positive" news such that it brings in hoards of new investors that want to buy more than those who want to get rid of their shares.
Also, if they release a lot of good news together, those with convertible shares will be tempted to hold onto shares for a while at least to maximize their profit.
Wow, now there's an "objective" statement I guess. I guess the news title should read, NCR approved center contracts with "con man" deceiving society about the useless hope of finding an efficacious treatment for cancer.
It has been a frustrating ride and transparency is not yet a strong point for this company. And maybe you can't teach an old dog new tricks or maybe the dog isn't interested in new tricks, I don't know.
But on the brighter side, there is no denying that there have been concrete positive changes in 2015 as well. This technology, while booming, is not a day to day discovery, so I recommend spending less time watching the ticker now and expect things to start happening in mid-Aug to Sept. I've been saying that for months while others are hoping for immediate tests to be concluded. Reading between the lines of BMSN/RGBP's PRs is somewhat an art and somewhat a mystery novel. But with the experience of the past couple of years, the lesson I've learned is to not expect the quickest, most positive possible outcome perceived, but to throw in a common dose of time and a pinch or two of healthy scepticism.
Yet, I am still heavily invested here and a large part of my financial investment will rise or disappear with RGBP. CRL/Kesari partnership are very good developments in 2015 and I believe they will bear fruit. We just don't have the rocketship on the launch pad yet.
At this point, my guess is that news will be released in a manner that they deem will benefit the "angel investors" the most, 1/6 of whose shares will begin releasing next month. Issuing a positive update now is too soon to have a lasting impact on the price for when they will want to start liquidating their shares.
Our best scenario is that between now and end of August, dCellVax or other pipeline products along with HemaX I can progress rapidly to a state where a new IND can be issued for a new product on the heels of good news (we hope) being released for CRL safety tests and then within a month we get news of FDA approval followed closely by Orphan Drug Status for HemaX in which case the price has a time period of over a month to be driven up in spite of the liquidation that is expected to accompany it.
Don't know. Without revenue, the scenarios of saving on taxes doesn't apply. Seems like the Morris Trust situation is more for established companies seeking a variety of advantages.
Hard to read establishment of Koos establishing Zander as subsidiary of ENTB other than a corresponding situation of BMSN and RGBP. RGBP has less shares to concentrate new potential and maximize price results. This was very hopeful and looking good until FDA did not give approval for HemaX I as anticipated. Seems Koos acquired some technology he believes will apply to cell treatment of animals and looks like the plan is to license/lease the technology to a future partner. Maybe establishing Zander (no neg history itself) and putting technology in its hands makes it one step removed from ENTB neg history for those looking at technology.
That would be my guess. As to value of this technology, how soon it will become a viable product to lease/license is anyone guess. On short term horizon, it might be something that drives ENTB trading, but I don't see it as impacting RGBP in one way or another.
AIMO
Let's hope the quality of their mice was up to par with the previous study.
Loet, thanks for the compliment. Regarding:
Thanks for posting LaddyMan. A good read and great potential.
N4T is just blowing steam against the naysayers with one undeserving comment against another. No, we are not expecting any "dividend" other than news of successful safety and test trials for multiple pipeline projects.
Next PR probably next Tuesday after the 4th of July weekend with an update on international conference.
Sid, you continue to say that the stock continues to decline, yet I think the last time the stock was at or below .15 and you said headed to .10. At .16-.18, is it lower to you than before as it "continues to drop"?
So you don't see any difference in what has occurred in 2015 from pre 2013-2014?
Could be a really exciting summer for RGBP as I reflect more on the Kesari situation.
As stated many times, 2015 has been a great year for new developments and signs of true company growth thus far. If, and it is an "if", since there are no guarantees in this business, RGBP receives positive news on CRL safety tests, then we get IND approval and orphan status.
And, if, on the tails of that news, RGBP gets positive data back from Dr. Kesari and one of the premiere cancer centers in the USA, along with a new IND for gliomas prepared for FDA by Dr. Kesari himself, RGBP is no longer a dog and pony show. RGBP becomes a legitimate cancer treatment company with promising R&D treatments that bigger pharma will be forced to take notice of.
Things can change very quickly here this summer. Let's hope it comes to pass.
That's great. I was in or near Rome for studies but spent several vacations in the Val de Non in northern Italy and enjoyed mountain climbing trips (only trails), but many trails where it's basically the end if you slip off the trail, some needing to attach to cable.
Beautiful country, loved the people and enjoyed the language.
Hey Sage, just read your PM from the weekend. Sorry you took the hit. Hope your other plays work out. For now, I'm considering the Zander thing as a side distraction and maybe Koos' way to try to move forward in animal cell testing while distancing from the ENTB past, much like RGBP is new company where the action is and BMSN is less and less in the direct light.
But in both scenarios, ENTB will do well if this new IP for Zander proves successful and BMSN will do well if RGBP is successful.
Magari. Non sonno italiano, ma ho vissuto and studiato in Italia per quasi sette anni. Et tu?
Sid,
dCellVax IND was filed a long time ago with testing results similar to testing data that was filed for HemaX. Logically, the testing for both INDs were done in a similar manner and even HemaX's testing after initial FDA dialogue did not meet the FDA's requirements. This could have been to BMSN leadership incompetence, could have been due to FDA's changing views in this new area, could have been due to misunderstanding. Whatever it was, it was an error of the past, not the present. And it is also why we were so excited to see HemaX testing go to CRL and new relationships develop with Drs. like Kesari who run institutions that are familiar and successful with preparing FDA required testing.
Acqua passata non maccina piu.
I would agree with that. Since the 8K clearly spells out the 3 stages of the agreement and that 1/2 of each quantity of shares will be registered via S8, I'm assuming these are the registration of the first set of shares (restricted) after having successfully liquated the other issued shares via VNDM a while back, so Kesari has money in his pockets for the unregistered half and now the formal registration of the other initial half.
The very good news now is that he doesn't get any more shares unless he successfully proves efficacy (which we anticipate will be the case since he has also been hired to file an IND for treatment of gliomas on behalf of RGBP using similar treatment. So the testing he is doing I believe applies to dCellVax's current IND and a new IND to be filed upon successfully in vitro experimentation.
This is a great development for RGBP going into the future.
From June 8, 2015 8K
Very interesting development. Clearly this is an Ichim coordinated entity that unfortunately is not directly tied to RGBP, though any knowledge gained by Ichim elsewhere can aid his research for RGBP.
The founding board members of the Coma Research Institute are as follows:
Thomas Ichim, PhD, chairman of the board
John Chiplin, PhD, board member Chiplin served on the board of Medistem Inc with Ichim and Bogin.
Vladimir Zaharchook, MBA, board member. Zaharchook served on the board of Medistem with Ichim, Bogin and Chiplin in the position of vice chairman.
J. Christopher Mizer, board member. [Mizer was former VP at BMSN and his leaving at the time to me was not a good omen. After his leaving BMSN, we entered the period of great silences and delays and it was Koos by himself. Interesting to see him pop up again here with Ichim.]
Vlad Bogin, MD, FACP, board member. Bogin served as chairman of Medistem Inc.
Amit Patel, MD, MSc, board member:
Why buy a failed product line when we need to get our current product line to human trials? There's plenty of work already for the Ichims to perform or oversee and not a lot money to toss around. Let's get FDA approval for at least one product to human trials, get the PPS over $1 and then you can sell some shares for cash for buyout potential....
We've got enough on the platter already to complete in the meantime.
I do not portend to be a business expert in biotechnology companies. That said, it is safe to say that adding value to a potential buyout can only occur when there is objective, concrete added value of the spinoff companies.
In our case, I lost money on ENTB when the "buyout" of a vet practice, one in many that was to occur in order to apply ENTB's potential development of animal stem cell treatments ended rather badly as I recall with a lawsuit and Koos having to turn the practice back over to original entity.
After that, nothing concrete was ever brought forward as I recall. In fact, I was surprised when C. Ichim was brought to ENTB late last year, but maybe this was some type of "trial period" where she could do animal testing and Koos could evaluate her work for what ended up being her hiring by RGBP.
We can only guess at the somewhat strange scenario of multiple companies and spinoffs, but to my knowledge, the only real value and action currently is in RGBP. Does ENTB or Zander even own any IP?