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To quote BigGreen101:
"GTEC is putting things in place to a nice run in time."
I say you are absolutely right, look at the following table, I have copy/pasted it from the filing about our fulltime CFO Ms. Sung. It's about her warrants to buy shares. I think it also gives a conservative estimate of the pps in the future.
That's a nice development in price per share!
Want to check for yourself? Read here:
http://yahoo.brand.edgar-online.com/displayfilinginfo.aspx?FilingID=5993247-7965-38065&type=sect&dcn=0001144204-08-034807
Greetings from Holland and GLTA
Enough looking back for now. Let's focus on the future. New CFO in her seat. Let's do the job and get those new drugs on the market, then a nice uplisting and year-over-year growth of 25-50%.
$1 here we come !
Greetings from Holland and GLTA
You both should stop "arguing". Both of you have very valid arguments. Accept each other for who you are, and remember: it is very hard to change a person´s nature.
Long is very protective because he almost thinks of GTEC as a child of himself. And a parent doesn´t speak bad of his own child in public...
John stands at a bigger distance and expresses his negative arguments, to share with others and to hopefully get a discussion going. Where Long keeps the possible negatives for himself...
I wish Carl had some wise words to add, or Randy...
Lets just wait for bbb, he'll think a some funny thing to loosen us all up.
GLTA in whatever stock you're invested in...
Greetings from Holland and GLTA
Agree 100% with second part of your post. I first want proof GTEC is going to be allright. My bet has been set a while ago and I am all in for a while now...
Well that's my nature being a little conservative/negative when other scream wheeeeee!!! But this time (GTEC) I could see myself making "big" money for once in my life. Thusfar: NOT
Nope, I have never seen that movie. But sodomy is not my thing anyway!
Or maybe BOD pushed to get the deal done because they were in a hurry to get the cash. We will never know, but you are right if you refer to the deal as "bent-over-the-barrel". I sure would have liked to see another deal. Or else they could have at least try to explain why they accepted these "bad" conditions...
Let's hope it was the last bump in the road and we can start our way up again.
We'll see.
Look at the complete filing.
Then go to chapter 4.c. Equity Award.
In my humble opinion these numbers predict pps (at least a little bit) ?
31-Dec-08 0.40$
31-Dec-09 0.60$
http://www.sec.gov/Archives/edgar/data/1091164/000114420408034807/v117210_ex10-1.htm
Greetings from Holland and GLTA
Nice base salary I guess. What strikes me most is the fact that she only gets 18.000 bonus if uplisting takes place. Do they give that little bonus because it is very likely that GTEC will uplist this year? Or do they set the bonus that low because they don't want Elsa to work hard on uplisting?
Long, did you discuss anything else with Pope you would like to share? In particular: are they urging / "forcing" GTEC to work on uplisting?
(I ask this because it seems so when you look at the demands they have made in the recent deal. New CFO, new members on board)
Then we are missing about 40 million shares? Did they give those to you?
Deal was 30 million dollar, 0.20 dollar a share is about 150 million shares.
In today's filing I count about 110 million shares...
Hey bbb have you requested your free fathersday sponge yet?
Bad days for me with GTEC. Guess DPDW does allright for you! Congrats.
Ardsley and Mr. Hempleman own a lot of shares now: 110 million. Wish I could say that...
I guess we will know when they want to sell all at once...
These aren't all the investors that were involved in the Pope deal I think? Curious when we will see the next filings.
That still doesn't mean it's all okay. We need to get uplisted...
Just do the math:
earnings per share of 0.058 (fiscal year 2009)
valuation (because were on OTCBB) with PE-ratio of 5x
gives a shareprice of 5x0.058= $ 0.29
use a PE-ratio of 10 and then we get a shareprice of $ 0.58
Let Pope just make sure we get uplisted...
Helpful explanation / commentary on the deal:
"Genesis Pharmaceuticals Enterprises, Inc. (OTCBB: GTEC) raised new capital through a private placement of $30 million in three-year convertible notes, which have an interest rate of 6% and are convertible into Genesis stock at $.20 per share. That last number represents an unusually large 31% discount, because at the time of the placement, Genesis was selling for $.29 per share. Looking at the financial report of Genesis, it is not clear why the company had to settle for such onerous terms to complete the financing.
When $30 million of notes is converted into stock at $.20 per share, Genesis will have an additional 150 million shares outstanding. Currently, there are 390.5 million shares. In addition, the newly issued notes include a five-year warrant allowing holders to buy another 75 million shares at a price of $.25 per share. In all, the new financing has the capability of increase the number of shares by 57% in return for $48.75 million.
As with the most recent financing, a $5 million note private placement completed in November 2007, the private placement was led by Pope Investments, LLC of Memphis, TN.
At the time of the $5 million financing – and again with this most recent capital raise – Genesis says that the proceeds will be used to buy the rights to Ligustrazine Ferulic Acid Acetate, an anti-clotting agent that qualifies as a China Class I drug. Class I designation signifies the drug has never been imported to China, nor has it been approved elsewhere in the world. Genesis expects the SFDA to approve LFAA in the first half of 2009. Revenues should begin toward the end of 2009. Genesis expects LFAA revenues in its fiscal year 2010 (July 2009 through June 2010) will surpass $23 million, and that they will top $35 million in fiscal year 2011. Gross margins for the product are predicted to be above 80%.
In addition to paying for the rights and underwriting the marketing expense, Genesis says the recent financing will but used to buy manufacturing equipment and upgrade its facilities.
The terms of the financing also contain a substantial “make good” clause. The Chairman and CEO of Genesis, Cao Wubo, put 150,000,000 shares of his common stock into escrow. 60,000,000 of those shares will be transferred to the private placement investors if Genesis’ 2008 earnings before taxes are less than $26.7 million and/or its fully diluted earnings per share are less than $0.04. Another 90,000,000 of the escrowed shares will be transferred if Genesis’ 2009 earnings before taxes are less than $38.4 million and/or its fully diluted earnings per share are less than $0.058. That number is dropped to $0.056 if the 20,000,000 shares of common stock from the November private placement are released from escrow.
After the company’s third quarter, completed March 31, 2008, Genesis reported that nine-month revenues grew by 28% to $71 million. Net income climbed 74% to $12.9 million. Before income taxes, the company recorded $19.7 in income and per share earnings of 5 cents, indicating that it stands a good chance of meeting its “make good” clause for 2008. The company said it had $21.6 million in cash and working capital of $30.6 million.
Given that the company has a solid financial footing and is nicely profitable, the terms of the Note financing, especially the large number of shares that are available to be converted, seem like the lenders struck a better deal than the company.
Genesis’ best selling products are the oral antibiotic Clarithromycin sustained-release tablets and Itopride Hydrochloride granules, an anti-constipation drug, and a new TCM product, the Baobaole chewable tablet, which is used to ease gastric discomfort.
After the financing was announced, the stock price of Genesis shares dropped 8 cents to $.21, close to the conversion price of the newly announced notes, and a decline of 28%."
Source:
http://www.istockanalyst.com/article/viewarticle+articleid_2269692~zoneid_Home~title_Genesis-Accepts-Strict.html
Greetings from Holland and GLTA
For the few longs that are still here, I have asked Mr. Coulson a question through e-mail. I want to know what is up with uplisting. Here is the mail I've sent:
Hello Mr. Coulson,
How about the uplisting that was being planned? Is GTEC still actively working on it? Has it been postponed? What timeframe do we have to keep in mind?
Thanks.
Best regards.
Let you all know if/when I get an answer.
See y'all in a year or two. Then we will trade between 30-40 cents again I guess...
Damn did they make us believe we would uplist with so little proof of their intentions...
Anyone acces to the bellwether report ?
http://app.quotemedia.com/quotetools/newsStory.go?storyId=10790335&topic=GTEC&symbology=null&cp=null
Greetings from Holland and GLTA
A lot of investors still have faith, not even one million sold today. Or are we going to see mega-selloff in the last hour(s).
Don't think so...
Greetings from Holland and GLTA
If this decline is all the damage that will be done it is not too bad. We will recover from that.
EPS almost guaranteed for FY 2008 and 2009. Uplisting still possible but that will not be within the next 1~2 year I think.
Yes, there were negatives in the arrangement made. On the other hand GTEC said it needed 30 million when the reverse merger took place. So this isn't a total surprise. Now that its done let's build the future.
They will be hiring a new CFO and some new boardmembers who are fluently in english. That means they want to draw more attention.
Let's go longs!
Crooks they are... still a slight, tiny chance uplisting will be accomplished. Maybe they are working hard on it behind the scene...
And then to think Crocker wrote this on Jan 6:
... In super 8-k we said company was planning on a 1for7 reverse split – timing and exact ratio need to be approved by board. I would expect this to be resolved in calendar Q1....
Looks like we will get hurt...
ouch
Well I am not so sure about it all to be adding at dips anymore
But no pain no gain....
Hello all. I have read throught the 8k, I don't understand every word, but I think I know the major things there are to know. I am going to hold my shares. Yes, we probably will see a dip in shareprice in the coming weeks/months. But I still think the future will be better: shares of Wubo in escrow is good sign. New drugs coming. 30 Million of working capital. New CFO/boardmembers: they will probably know better how to please and inform investors. Time will tell...
A lot of demands in concern with the new financing. A new CFO?
New members of board? what is going on?
In connection with the Financing, the Company entered into a holdback escrow agreement (the “Holdback Escrow Agreement”), dated as of May 30, 2008, with the Investors and Loeb & Loeb LLP, as Escrow Agent, pursuant to which $4,000,000 of the Purchase Price was deposited into an escrow account with the Escrow Agent at the closing of the Financing. Pursuant to the terms of the Holdback Escrow Agreement, (i) $2,000,000 of the escrowed funds will be released to the Company upon the Company’s satisfaction no later than 120 days following the closing of the Financing of an obligation that the board of directors be comprised of at least five members (at least two of whom are to be fluent English speakers who possess necessary experience to serve as a director of a public company), a majority of whom will be independent directors acceptable to Pope Investments LLC (“Pope”) and (ii) $2,000,000 of the escrowed funds will be released to the Company upon the Company’s satisfaction no later than six months following the closing of the Financing of an obligation to hire a full-time chief financial officer acceptable to Pope who has experience as the chief financial officer of a U.S. public company and who is a certified public accountant, fluent in English and an expert in GAAP and auditing procedures and compliance for U.S.
public companies. In the event that either or both of these obligations is not so satisfied, the applicable portion of the escrowed funds will be released pro rata to the Investors.
Authorized shares up to 900 million instead of 600 million.
What do we think of it longs?
One small step ahead, two steps back.
It is a good thing Cao Wubo gives a couple of million of his shares in escrow. It kind of guarantees earnings per share they write down in the PR. Value the eps 10x we should be trading at 0.58$ by june 2009.
I hope one of these medicins will be out VERY soon to get some positive momentum again.
Then it will change to two steps ahead and one small step back....
Greetings from Holland and GLTA
News on new drug and 30 million investment by Pope!
Genesis Pharmaceuticals Closes $30 Million Private Note Placement
LAIYANG, China, June 3 /Xinhua-PRNewswire-FirstCall/ -- Genesis Pharmaceuticals Enterprises, Inc. (OTC Bulletin Board: GTEC) (“Genesis” or the “Company”), a leading pharmaceutical company in the People’s Republic of China, today announced that on May 30, 2008, it successfully completed a private placement of an aggregate principal amount of $30,000,000 of its three year convertible notes (the “Notes”).
The Notes carry an annual interest rate of 6.0% and are convertible into shares of the Company’s Common Stock at a conversion price of $0.20 per share. In connection with the private placement of the Notes, the Company issued to purchasers of the Notes an aggregate of 75,000,000 five-year warrants to purchase shares of its Common Stock at an exercise price of $0.25 per share. The lead investor in the private placement was Pope Investments, LLC.
Genesis intends to use a significant portion of the net proceeds from this private placement to pay for the rights to manufacture and distribute a new Chinese Class I drug, Ligustrazine Ferulic Acid Acetate (“LFAA”), and for the marketing expenses associated with the launch of LFAA. LFAA is a cardiac cerebral vascular medicine that helps to reduce blood clotting and prevent blood platelets from clumping together. The Company expects to receive approval of LFAA from China’s State Food and Drug Administration in the first half of calendar year 2009 and to start generating revenue from sales of this drug in the latter half of calendar year 2009. The Company projects that revenue from LFAA sales in Genesis’ fiscal year 2010 (July 2009 through June 2010) will be over $23 million, and that revenues from LFAA sales will be over $35 million in fiscal year 2011, and to continue to grow thereafter. The Company estimates that the profit margin on LFAA sales will be above 80%.
The Company also intends to use a significant portion of the net proceeds from the private placement to purchase manufacturing equipment and upgrade the Company’s facilities.
“We believe that this financing provides Genesis with new capital with which to pay the balance of what it costs to acquire and market LFAA, a drug that we believe has the potential to significantly enhance our future growth and profitability,” said Mr. Cao Wubo, Chairman and CEO of Genesis Pharmaceuticals Enterprises. “We are investing in our future growth and development while working to increase Company value for our shareholders.”
According to a make good arrangement entered into in connection with the private placement of the Notes, Mr Cao Wubo agreed to put 150,000,000 shares of his common stock into escrow. 60,000,000 of those shares will be transferred to the private placement investors in the event that either the Company’s 2008 earnings before taxes are less than $26.7 million and/or the Company’s fully diluted earnings per share are less than $0.04 and 90,000,000 of such shares will be transferred to the private placement investors in the event that the Company’s 2009 earnings before taxes are less than $38.4 million and/or the Company’s fully diluted earnings per share are less than $0.058 (or $0.056 if the 20,000,000 shares of common stock held in escrow in connection with the Company’s November private placement have been released from escrow).
Neither the Notes, the warrants nor the shares of common stock issuable upon conversion of the Notes and the exercise of the warrants issued in this private placement have been registered under the Securities Act of 1933, as amended, and may not be offered or sold by the investors in the United States, except pursuant to an effective registration statement or an applicable exemption from the registration requirements. Genesis Pharmaceuticals Enterprises, Inc. has agreed to file a registration statement covering the resale by the investors of the shares of common stock issuable upon conversion of the Notes and exercise of the warrants issued in this private placement within 45 days of the closing date of the private placement. For more detailed information on this financing, please refer to the Company’s Form 8-K and related exhibits that will be filed with the Securities and Exchange Commission on Tuesday, June 3, 2008.
Brean, Murray, Carret & Co, served as the sole placement agent for this placement.
This press release does not constitute an offer to sell or the solicitation of an offer to buy any security and shall not constitute an offer, solicitation or sale of any securities in any jurisdiction in which such offer, solicitation or sale would be unlawful prior to registration or qualification under the securities laws of such jurisdiction.
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 major pharmaceutical company in China producing tablets, capsules, and granules for both western and Chinese herbal-based medical drugs.
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 anticipated or 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.
For more information, please contact:
Genesis Pharmaceuticals Enterprises, Inc.
Ms. Elsa Sung CFO
Phone: +1-954-727-8436
Email: genesispharm@gmail.com
Web: http://www.genesis-china.net
CCG Elite Investor Relations, Inc.
Mr. Crocker Coulson, President
Phone: +1-646-213-1915
Email: crocker.coulson@ccgir.com
Web: http://www.ccgelite.com
SOURCE Genesis Pharmaceuticals Enterprises, Inc.
-0- 06/03/2008
/CONTACT: Ms. Elsa Sung CFO of Genesis Pharmaceuticals Enterprises, Inc., +1-954-727-8436, or genesispharm@gmail.com; Mr. Crocker Coulson, President of CCG Elite Investor Relations, Inc.,
+1-646-213-1915, or crocker.coulson@ccgir.com, both for Genesis Pharmaceuticals Enterprises, Inc./
/Web site: http://www.genesis-china.net
http://www.ccgelite.com /
(GTEC)
Greetings from Holland and GLTA
Wow, would news on uplisting surely bring back joy and happiness to this board ...
I hope the way things went on this board aren't omens for the things that will happen to GTEC.
Walking a thin line by deleting that message...common Long be realistic
If GTEC doesn't uplist it may be so that current pps is a fair valuation for an OTC stock. I don't like it either...but if that is the point Carl was making I don't think his post should have been deleted...
Him metioning another stock is not right in regard of TOU but not a reason to delete his message I think.
On topic:
I think they will uplist because it can bring them a lot more investors and thus more money to develop their business. Unfortunately the uplisting porbably won't happen this year then I guess...
Thanks Long!
Thanks for update! Good luck with DPDW, for now that's making you profit I think?
What's your guess will we have news before FY 2008 is over?
Did they give any info on uplisting?
Timeframe on new drugs?
_bbb_ are you willing to write a brief report on the conference call you listened, so I don't have to call in ?
Hey longs, can we filter some positives out of the things that happened last days? Long, Carl, bbb, Bigplay is it still worth holding on? I really think so, but do you guys agree? Q3 results where confirmation of good things I would say. On track to (barely) meet the promised 100 million. But then what will bring 2009? Four (yes, 4) new drugs? More new items in CC?
You mean from the tips of my fingers. I was typing, duh...
I have bought in the last few months. Based on what I expect to happen.
I hope it is just that they have to get used to dealing with savvy investors who ask a lot of questions. Maybe they are better in running their business than in holding CC's.
Time Will Tell
Posted by: bigplay777
here the list who will ask what?
- how to get attention ?
- uplisting ?
- new drugs ?
- legal claims ?
- dividend ?
- outlook fiscal year 2009 ?
- why no PR during last months ?
Haven't been able to follow CC. Where some of these questions answered? Someone willing to write a brief report on the CC?
Train halted unexpectedly ?
Wow, a lot of new(born) posters here. Maybe they will bring some magic to our beloved stock. We need it... so far I think market isn't picking it up very well.
When Q2 results where announced (Feb 15th) we saw volume of over 2 million. Maybe tomorrow the action will start . . .
I am very curious what will be said during the CC. Such good numbers and still no positive action...
They need to adress a lot of issues..
- how to get attention ?
- uplisting ?
- new drugs ?
- legal claims ?
- dividend ?
- outlook fiscal year 2009 ?
- why no PR during last months ?