Register for free to join our community of investors and share your ideas. You will also get access to streaming quotes, interactive charts, trades, portfolio, live options flow and more tools.
Register for free to join our community of investors and share your ideas. You will also get access to streaming quotes, interactive charts, trades, portfolio, live options flow and more tools.
Bravo to CTIX for posting the chart they did and for sticking to their rigorous self-imposed deadlines.
It's not likely happen, but I'd love to see a similar chart for anticipated partnership executions. Maybe we could deduce one ourselves, however, even then I suspect there would be lack of general agreement so were left to conjecture on our own.
Leo and Co. want a partnership with the right pharma for each specific indication, they have repeated their desire to do partnerships repeatedly as evidenced in PR's and interviews, all well publicized on this board. They have reflected on the fact that they currently have more interest to do so than ever before in the Co.'s history. Leo the shrewd CPA businessman and BERTOLINO, MD, PHD, MBA, President and Chief Medical Officer are singing the same tune whenever asked while Menon remains the genius in the lab.
The key to the puzzle it seems to me is reflected in the latest OM trial. Pharma is interested in specific indications, the current P and OM trials would seem necessary and sufficient to satisfy their interests if the results continue to be both efficacious and safe. The UP 2b seems to me to be designed to quickly satisfy questions raised by interested pharma's as well as to inform the Co. in preparing the design of a potential registration trial. It also adds credibility to the value of B as a true franchise molecule with many indications and useful properties. I'm very curious to know if an interested pharma worked with Dr. B to design the trial to answer questions before partnering however I think it borders on being material disclosure and therefore better addressed in a PR. Maybe if you ask them they'll answer the question in their next PR. They are very good about answering emails but do not disclose material facts not previously made public.
2017 has been designated to be the year of partnerships, were entering the 2nd Q, I expect OM, UP and P to be the subject of serious partnership negations with outcomes to be informed by the upcoming trial results. I'm expecting at least one partnership this year and there is a good chance for two. Several posters on this board are doing a great job keeping us all informed and reminded about trial schedules and anticipated announcement time frames.
I'm not aware of any interest or any intent by the Co. to sell the entire co and I hope they don't as we are too early stage in regards to maximizing potential value.
The takeaway for me from the resolution of the Menon/Aruda dispute, which appears to me to have been A tort, in common law, that unfairly caused Menon to suffer a loss resulting from a legal liability created by the faulty execution of the K patent procurement process as described by others which I have not investigated as it seemed to me the settlement was a fait accompli. To wit;
1) There was no direct cost to CTIX from the Celleceutix/Aruda dispute.
2) Aruda (fairly or not) received 16mm shares of CTIX from Menon
personally, along with any potential royalty streams thereof (not
sure that I understand the royalty arrangement correctly).
3) The indirect cost to common shareholders was not dilution but rather
the inclination by Aruda to sell relatively large numbers of shares
compared to the average volume over a long period of time. We can
and have speculated as to the reasons for Aruda's divestiture, the
general consensus, it seems to me, being diversification of Aruda's
portfolio which when considering the large number of shares and
potential revenue streams seems likely to have been an over weighted
concentration in CTIX.
4) The resulting divestiture of Aruda stock combined with regular
selling by Aspire, according to the nature of it's business, seems
to have been to pressure the stock price and afford an opportunity
for conspirators (Mako, Rosen, AF, SA and perhaps many of their
followers/accomplices) to profit by shorting CTIX stock.
UNITED STATES
SECURITIES AND EXCHANGE COMMISSION
Washington, D.C. 20549
Form 8-K
Current Report Pursuant to Section 13 or 15(d) of
The Securities Exchange Act of 1934
Date of Report (Date of earliest event reported): August 28, 2014
CELLCEUTIX CORPORATION
Item 8.01 Other Events.
In a personal dispute between Dr. Krishna Menon and a party named Aruda, Aruda claimed that although he had participated in the invention relating to the compounds and therapeutic uses disclosed and claimed in US Patent No. 8,338,454 ("454" Patent") he was inadvertently omitted as an inventor from "454 Patent" and applications related thereto. On August 28, 2014, a settlement took place between Dr. Menon and Aruda which resulted in the following: Menon acquired all of the rights Aruda claimed in the Kevetrin patents in return for (i) the transfer to Aruda and designees an aggregate of 16,000,000 shares of stock in Cellceutix over a period of 16 months, currently owned by the Menon Trust and (ii) and assigned a portion of the royalty revenues that may be payable to Menon, to Aruda and designees, as further detailed in the Agreement titled "Amendment to Menon-Cellceutix Agreement Without Changing the Total Royalties Payable Under the Terms of the Prior Agreement". Menon then transferred all Kevetrin patent rights to Cellceutix. The aforementioned share transfer was strictly between the personal holdings of Mr. Krishna Menon, the Menon Trust, and Aruda. No shares or royalty payments were issued by the Company.
2
Item 9.01 Financial Statements and Exhibits.
(d) Exhibits.
Exhibit
Description
10.46
Cellceutix Aruda Agreement
10.47
Amendment To Menon-Cellceutix Agreement Without Changing The Total Royalties Payable Under The Terms Of The Prior Agreement
10.48
Assignment Of Patent Rights To Cellceutix
99.1
Press release dated September 2, 2014, titled “Cellceutix Appoints Dr. Barry Schechter to Board of Directors as Company Focuses on Meeting Requirements for Stock Exchange Uplisting”
What gets me excited is the more than likely probability (IMO) that the Co. will strike a deal this year with a Pharma (maybe not BP but hopefully BP) that has the the depth of resources, expertise, and experience with the FDA to complete an informed and successful registration trial and then the existing capacity to do the necessary preliminary follow up through existing channels with insurance companies and hospital formularies and the marketing muscle to put one of our drugs into the national and international spotlight as a potential blockbuster. It's far from certain that the next step is the one that I'm describing, as any failure along the way before that happens would weigh heavily on our investment. This is however an asymmetric investment where we could lose 50 cents on the dollar on the next trial result's outright failure but stand to make orders of magnitude gains, if one of many indications continues on it's present course through registration trials to the US market and eventually to the entire wold through licensing deals. It's my opinion that when a deal gets done that eliminates the immediate financial concerns of investors that this stock will quickly challenge the highs of a couple years ago at around $5.
Whatever, if you don't see it, it's not of concern to me, I read it, maybe it was the day before, I really don't care as it's not my original source. That site is a complete waste of time BTW . Try to understand it from my point of view, which is that it's difficult to know something without being able to say publicly who the source is. I went on record first with the salient fact the purchasers of the pipe were existing shareholders of CTIX. I have said it multiple times and I stand by my statement. Disclosure over time will prove me accurate. IMO this conversation is very long in the tooth and I still stand by what I said...
If that answer seemed ambiguous what I meant to say is that it's a fact that the pipe investors were already existing shareholders. That is all I know about them. Separately I read the same on the other board. I believe posing the question to the company would resolve any doubt in your mind.
I only have restricted access over there so I would need to dredge through with the pop up ad every few seconds. I assure you it is a fact, you can confirm with a simple email to shareholder relations if your interested. I do not quote people without prior approval.
It was reported on the other board yesterday that the purchasers were existing shareholders. This tends to give the impression that they are in this investment for the long haul although thats just my assumption.
FORM 8-K is out for the PIPE
The Buyer is entering into this Agreement and acquiring the Purchase Shares for its own account for investment; provided however, by making the representations herein, the Buyer does not agree to hold any of the Purchase Shares for any minimum or other specific term.
(b) Accredited Investor Status. The Buyer is an “accredited investor” as that term is defined in Rule 501(a)(3) of Regulation D under the 1933 Act.
No Prior Short Selling. The Buyer represents and warrants to the Company that at no time prior to the date of this Agreement has any of the Buyer, its agents, representatives or affiliates engaged in or effected, in any manner whatsoever, directly or indirectly, any (i) “short sale” (as such term is defined in Section 242.200 of Regulation SHO of the Securities Exchange Act of 1934, as amended (the “1934 Act”) of the Common Stock or (ii) hedging transaction, which establishes a net short position with respect to the Common Stock.
If this years results hold up I'm almost sure we will have one or more partners for specific indications rather than for a drug or entire platform. That's the direction things are currently headed. I don't know if there is any interest in a total Co. buyout by BP but that is not the best way to maximize shareholder return at this stage of development IMO.
The aspire deal does have some attractive features to it. It's a sure thing and it's at the time of the Leo's choosing. I'm speculating here but if Leo is a big believer in recent results, as I know he is, it's possible that he may expect a large run up in the next six months or so and is using the PIPE to bridge the time frame for that expectation while planning to use the existing Aspire agreement to raise capital at a much higher share price. The press releases have stated repeatedly that they expect 2017 to be the year of partnerships, that partnership interest has never been greater, so I view this recent tiny offering like i would a bridge loan to what might be 100 million dollar capital raise from the existing Aspire deal at maybe $5 to $10 or higher with the right partnership and great results from soon to be completed trials. That would allow the co to accept BP partnership offers with less cash up front but with greater milestone payments and a higher % of future revenue. At the very least and not speculation this small funding buys time which IMO equates to leeway for CTIX to negotiate a better partnership than it otherwise would.
I also would speculate that because the OM and P trials are double blind the attending physicians involved in them read to PR's to gain insight into the potential benefit to their patients. As there are no other trials out there that have had such encouraging results, both in the clinic and pre-clinical, It follows that they are excited about the results and that enrollment is speeding up as they share what they know with patients and they eagerly sign up to avoid the nasty side effects of OM. I suspect there are more than enough willing patients for the very small 3rd cohort of the UP trial.
I apologize if I'm mistaken, it's possible I've crisscrossed terms of another financing deal.
Aspire is contractually obligated to perform according to contractual agreement. They have mad a lot of money in successive deals with CTIX and there is nothing to lead a reasonable person to conclude they would not live up to their current obligations and seek to continue a very profitable and well understood financial relationship.
I would add that having multiple proven sources of funding drives down the cost as they can compare and compete and it gives (most) investors confidence that if the Aspire deal and the Co.'s only source of funding drys up for any reason related to Aspire or CTIX the business is in deep trouble. I'm convinced this was a mush needed and overdue move.
I think your forgetting to consider both the actual cost of dilution as a direct result of the options related to the Aspire deals, the almost certain hit to the SP from Aspire selling stock before the company needs money to to obtain a better purchase price and the potential huge cost of the options if the SP raises substantially as the PIPE deal indicates Leo is betting on.
If the SP soars the potential cost of the options will by far far exceed the the discount to Aspire and other costs related to their transaction that the PIPE does not incur. I think Leo in in a better position to judge the costs of financing than outsiders as he has both much more information and he is a veteran CPA and seasoned financial manager as well as having more skin in the game than any of us. He has the knowledge, incentive and the means means to make the right decision. Second guessing him is natural but advantage Leo IMO.
someone once said:
there is no such thing as a bad stock, just bad timing.
not that this matters much, but I think very odd;
StreetSmart now shows the last regular hrs sale as .96 with no time stamp
It shows 500 shares traded at $1.00 @14:00
and the last trade of the the regular day day of 100 share at .9875 @ 10:00
I think someone tried to sneak in an after the close trade as the last trade of normal hrs trading.
Good day today for the longs I think from watching the tape.
I believe you, it didn't make sense
100 shares
Schwab Streetsmart shows currently still shows the last trade at of .96 @ 14:00
schwab's streetsmart level 2 shows .96 close at 16:00
I had a bid in at .975 and I didn't get any
anyone notice the shenanigans at the close? There were bids, including mine, well above that .96 last second BS print.
In that case the'd be bidding up the cost of their own investment and Ctix would suffer in the market from the perception that they are totally dependent on aspire. Investors are a selfish bunch in that they want to buy low and sell high.
essentially flat for the day and a penny off the day's high. A green close is possible if the traders for Aspire think they are no longer guaranteed the next 19 million shares at a deep discount with free options. Aruda has sold quite a bit already and may be tired of competing with himself to drive the price lower and the would be short sellers can read the press releases and may not be as anxious to walk the crawl out on a limb and sell short. I'm not sure who's interest it is to keep the SP below a buck, maybe there is room to run....
check out the ctix message board on this site
ten times normal volume or more and a 31% move just today, I am wondering if this is telegraphing something we don't know or if it's momentum and not sustainable.
good luck to you as well. A little story. I have had a tendency to sell shares that were under water for some time when I got even but it's come a high price. For example, I had a very large position in CBG at around $3 near the bottom of the financial crisis. The stock is over $35 now. It went up so fast that I never felt comfortable so I watched closely for a pull back that never materialized until I couldn't stomach watching any longer and removed it from my screen. Point being just because we get even is not necessarily a good reason to sell. This stock has a lot of potential but is no doubt risky.
I love the asymmetric quality of this investment. I'm finally in the green on this one, been a while.
I did not suggest any material non disclosed information was the basis for my tongue and cheek remark. Others seem to think a private placement is suspicious on it's face which is not the case. No way Leo would cross the line into insider trading. I know this from his email responses, they are all carefully worded to comply with the letter and spirit of the law.
u never know, it could be Dr. Bertolino's friends at Pfizer that bought the placement believing that some form of partnership is possible. Either way being down only a penny on a capital raise is a vote of confidence that Leo found a deal the market approves.
Private equity investors typically seek investments with a probability of averaging 20% returns per yr.
It was a professional well coordinated hit no doubt about that but this is our legal system and nothing has changed for generations, I'm not the least bit surprised. This decision is not material to the long term future of CTIX. Move on.
This demonstrates that aspire is not the only way to fund future needs and this way is more cost effective. I'm going to send Leo an email asking that he keep me in mind for future private placements.
Private placements like this are not uncommon and they usually have a mandatory holding period of at least six months. They are probably already shareholders known to Leo.
Honestly the price was pretty good, most clinical stage bio secondary offerings receive about a 20% discount when you compute the value of the options and the costs associated. This was very small and very efficient. This raise also puts us in better negotiating posture.
The small size of the capital raise is the tell. Leo believes good new is coming or he would have raised a lot more money. This is apparently what he thinks will safely get the company past the next big news release. Leo's all in with this bet IMO.
I suspect for the same reasons we have been discussing;
Aspire is not a long term holder, they are in essence a lender who purchases shares at a discount (considering the free options) with the full intention of selling off the shares after a brief holding period while opportunistically holding the options. This would seem to be conformation that Leo thinks private investors will hold longer and perhaps it's a requirement of the deal. My first impression is positive.
The means by which Aruda acquired shares has been discussed ad nauseam, however in an effort to keep to the facts:
UNITED STATES
SECURITIES AND EXCHANGE COMMISSION
Washington, D.C. 20549
"Form 8-K
In a personal dispute between Dr. Krishna Menon and a party named Aruda, Aruda claimed that although he had participated in the invention relating to the compounds and therapeutic uses disclosed and claimed in US Patent No. 8,338,454 ("454" Patent") he was inadvertently omitted as an inventor from "454 Patent" and applications related thereto. On August 28, 2014, a settlement took place between Dr. Menon and Aruda which resulted in the following: Menon acquired all of the rights Aruda claimed in the Kevetrin patents in return for (i) the transfer to Aruda and designees an aggregate of 16,000,000 shares of stock in Cellceutix over a period of 16 months, currently owned by the Menon Trust and (ii) and assigned a portion of the royalty revenues that may be payable to Menon, to Aruda and designees, as further detailed in the Agreement titled "Amendment to Menon-Cellceutix Agreement Without Changing the Total Royalties Payable Under the Terms of the Prior Agreement". Menon then transferred all Kevetrin patent rights to Cellceutix. The aforementioned share transfer was strictly between the personal holdings of Mr. Krishna Menon, the Menon Trust, and Aruda. No shares or royalty payments were issued by the Company."
http://www.otcmarkets.com/edgar/GetFilingHtml?FilingID=10184158
The price for a priority review voucher keeps going up. In May of this year, the price was $245 million. Today, Abbvie bought one for $350 million from United Therapeutics.
"The Priority Review Voucher program was introduced to encourage companies to develop drugs for rare pediatric conditions or neglected tropical diseases. If the company’s drug gets approved for a pediatric or neglected tropical disease, the FDA can give them a voucher that they can then use for future drug applications. A priority review designation by the FDA means the drug will be reviewed in 6 months instead of the standard 10 months. And the vouchers can be applied to ANY future drug application by the company. Normally, a priority review designation would only be given to a drug that is for a 'serious condition' and has demonstrated 'the potential to be a significant improvement in safety and effectiveness'.
The Priority Review Voucher is also transferable and that is what United Therapeutics decided to do with their voucher—sell it. And Abbvie believes that getting one of their drugs to market 4 months earlier is worth $350 million.
United Therapeutics received the Pediatric Disease Priority Review Voucher when dinutuximab was approved by the FDA for the treatment of neuroblastoma, a rare pediatric disease in March, 2015."
http://www.raredr.com/news/abbvie-buys-priority-review-voucher-for-350-million
I believe you succinctly stated a reasonable position in your original post, however, I believe D has equally valid points. The "shock and awe" of all the hit pieces including Mako's, AF's never ending tweets, the Rosen suit combined with constant bashing and FUD on this and other message boards and the serious losses associated with the dramatic price decline related to the above has had the combined effect of scaring the hell out of retail investors.
The Co.'s market cap is trading at 1/3 of the potential value of K's approval from the FDA for it's Orphan Drug treatment of retinoblastoma, which affords the opportunity to apply for a "Rare Pediatric Disease Review" Voucher which can be sold and in fact have been sold for hundreds of millions of dollars.
This does not include the potential value of B's use as a treatment for biofilm infections in prosthetic orthopedic infections. Orthopedic infection continues to receive a high level of attention, due to the fact that nearly 1 million total hip and knee arthroplasties are performed in the USA each year, and this number is expected to rise in the near term with the aging population. The market is giving no credit to these adjunct applications and little to no value to B,P and K platforms combined.
I'ts clear that retail investors, currently the only holders (not including insiders) are scared to death and are sitting on their wallets until the price action supports their thesis for holding CTIX as an investment.