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Let's Be Clear...
For BGMO to ever be reinstated to the Pink Sheets by the SEC they need to file audited financial statements. As they have never done this it will take both time and money. Knowing that the SEC has looked into BGMO any CPA firm that takes on such an assignment will be extra careful and take months at best. By then the stock price will be a fraction of where it currently is.
This is not about any previously filed documents.
This is not about filing any documents with OTC, they are not a regulator and are irrelevant.
This is not about showing bank statements or paperwork, other than in the course of performing an audit.
This is not about anything to do with VSTA.
Remember, that when BGMO released their compiled financial statements that admitted openly that everything they had published in the past was a total lie and fabrication. Reconciling this will be a major challenge.
It is highly unlikely that BGMO can satisfy the SEC, it is unlikely they are even trying. More likely if they are even paying attention they are preparing a defense against civil charges.
The fact is that stocks do not come back from the Grey Market and no one should expect BGMO to be the first.
They're Just Trying to Keep the Scam Alive
Of course you're 100% correct. The PR is total BS, and that's unfair to BS as it least it can be used as manure.
A cursory read suggests that they are doing something. Typical HH dissembling that doesn't hold up to a careful read. That is of course the fool theory. But it has been years since the market has believed a single word BGMO/HH has said. If fact, whenever they speak the stock falls.
The grey market is a roach motel. Once you're in you can't get out. The only question is is there a civil complaint coming from the SEC (litigation). There could be, but it may take time before we know.
One of the more interesting things BGMO could do, which they won't, would be to release the corporate tax returns. If the income they have claimed over the years was real this is where it would appear. My bet is they had no income and probably filed a cursory return if they even complied. Tax evasion would be an interesting charge.
But why try and use real analysis and thought on this piece of garbage. It doesn't matter. Too bad that BGMO's death will remove a source of countless entertainment.
PS If HH tries to sell into this he is toast for stock fraud.
Keep the Fraud Alive
Wow, is all I can say. A PR from BGMO saying they are working with the authorities to get the stock restored. It actually takes a combination of moxie and ignorance to think you can do this. The only explanation has to be they believe someone will continue to be fooled that BGMO is for real and buy the stock in the grey market to keep it from collapsing.
You need to work backwards in how the SEC operates, which is why not a single stock ever moved to the grey market has ever come back. Not one. The SEC has seen what BGMO has put forward as financial statements already, including the much vaunted compilation. These statements severely contradict each other. If the compilation is correct it is an admission that all previous financials provided by BGMO are total lies. If the older material is correct then the compilation is a lie.
Either way, BGMO is guilty of lying to investors and the SEC now knows it. The only potential way out of something like this would be to get a CPA to issue fully compliant and audited financials. Bank statements from HSBC are irrelevant to the topic. It is highly unlikely a CPA firm will take this task on due to the inherent liability knowing the SEC will scrutinize their work. Even if one would take it on, it would take months to prepare, at significant cost to BGMO, to perform this assignment as you would have to go back and audit years worth of records.
When the first real trade occurs this stock, and scam, are over.
VSTA on Life Support
An initial read of the 10-Q filed last night shows how dire things are financially for VSTA. Barring a massive capital infusion the end is rapidly approaching.
Key points:
Revenues = $0, part of an ongoing trend and with no revenues in sight. Interesting that its been a couple of years since the last grant, is that a commentary on what VSTA is trying to do?
Operating cash burn still running roughly $1 million per quarter, or roughy $300,000 per month. They can't keep extending payables much more or suppliers will cut them off.
They are still alive as Platinum is providing small, very expensive for a development stage biotech, loans. These are not sufficient to meet their cash burns and one has no idea how long they will continue.
Funding from BGMO = $0. BGMO/Autillion continues to be in default of the SPA.
Question: does VSTA have any IP or patents that are of value to someone else? My bet is no or this would have opened a source of finance for them.
Question: why doesn't the stock ever trade?
Count the weeks, it won't be long now.
VSTA on Life Support
An initial read of the 10-Q filed last night shows how dire things are financially for VSTA. Barring a massive capital infusion the end is rapidly approaching.
Key points:
Revenues = $0, part of an ongoing trend and with no revenues in sight. Interesting that its been a couple of years since the last grant, is that a commentary on what VSTA is trying to do?
Operating cash burn still running roughly $1 million per quarter, or roughy $300,000 per month. They can't keep extending payables much more or suppliers will cut them off.
They are still alive as Platinum is providing small, very expensive for a development stage biotech, loans. These are not sufficient to meet their cash burns and one has no idea how long they will continue.
Funding from BGMO = $0. BGMO/Autillion continues to be in default of the SPA.
Question: does VSTA have any IP or patents that are of value to someone else? My bet is no or this would have opened a source of finance for them.
Question: why doesn't the stock ever trade?
Count the weeks, it won't be long now.
VSTA has mixed compliance with deadlines
So I agree expect an 8-K at the last minute delaying the 10-Q. They have a lot to explain, like why are they still in business at this point in time and how are they handling BGMO's default?
Also, I wonder what their lawyer's will advise them to say about BGMO now that it is suspended.
Barring an angel descending on them they are effectively a dead company. Maybe there is some IP buried in their but I just don't see them raising any fresh capital given the lack of any result for the millions they have already spent. You know your prospects are declining when you are reduced to having a poster at a major industry convention.
I wonder if they even have any actual employees as they haven't had the money to pay bills for most of this year.
Also, when your chat room is reduced to tangential posts from the BGMO chat room and repeatedly posting the same boilerplate from the company's website and there are no shareholders arguing in favor of the stock and haven't been for weeks its a pretty bad sign.
This stock seems way overdue for a major price correction downwards.
Can VSTA Develop Anything?
There is exactly zero evidence that VSTA has the money to spend to develop anything. This is a company on financial life support that stooped to trying to get financing from BGMO, a worthless, penniless shell.
After years of effort and millions of dollars spent they have bubkas (i.e., nothing) to show for it.
Unless they find cash fast no number of reposting what they intend to do will keep them alive.
The 10-Q due this week should make for very interesting reading.
SEC timing and potential charges against HH
I was thinking of why the SEC acted when they did and there are two obvious reasons.
The first is when BGMO defaulted multiple times on the SPA with VSTA. It would make sense for VSTA to report them to the SEC given statements VSTA had made in SEC filings. After all, in much of the securities world there is a duty to report so that once VSTA realized they were shown totally bogus documents by BGMO saying nothing implicates them too.
The second piece is the elusive 62 million shares that were sold to an unknown party. While we don't know the exact date when they can trade we know it is soon. If the SEC realized that an "insider" received them and that false information was being used to keep the stock price up so they could flood the market and harm other shareholders then they have BGMO management on securities and wire fraud charges.
This is a pretty reasonable theory as BGMO was actively promoted clearly false documents as real. If so much more serious legal action is coming from the SEC in the form of a civil complaint. HH and his cohorts should be quite nervous as this is a serious situation.
One should also add the following to the list...
Each may get a reprimand or fine depending on whether they are cooperating / enabling the SEC work or sitting silent.
LL Bradford. Their disclaimer may not be a bulletproof shield as things were so obvious.
Quality Stocks and the family of IR firms.
Seeberger, at least his letter was withdrawn.
Agree thought as this is both an easy case and that the SEC won't expend huge resources to get closure. If HH behaves as he has in past litigation then he will make things worse for himself. If he has any smarts he'll say what do I sign to make this go away. The fact that the SEC has filed for a jury trial may indicate he passed on that option already.
Either way this long running fraud is in the process of being shut down.
Lastly, I wonder why VSTA remains silent. You would think there would be an 8-K by now calling off the deal with BGMO and I am still puzzled why the stock doesn't ever trade and why the SP is where it is??? Clearly they have to explain to the SEC the statements that they were meeting with HH and all was well. Clearly they had to know this was false.
Maybe VSTA reported BGMO to the SEC...
Hmm, could have been the final nail in the coffin. After all, once they understood they were getting no money and there was nothing to recovery from a penniless shell via litigation they may have decided to let the SEC take over.
Either way, as obtaining funding is the key factor in their survival they owe it to SH's to say something. Silence is never golden. You would they think they want to run from the odor of BGMO as far and as fast as possible.
Pyrrhic Victory
It has been a battle waged for too long by those that immediately saw this for the fraud that it is and the company's management and promoters that were able use the stock as an ATM. The truly sad part is the damage done to people who tried to do business with BGMO, those that bought the stock or had the stock bought for them by their brokers.
The fact that it is essentially now confirmed that this is worthless paper, one can almost hear the rats scurrying away to their next fraud, is sad. Too many were hurt in the process of this unraveling. Hopefully they will at least learn the basic lessons of due diligence, and importantly what it means when you can't even do due diligence.
As to recoveries from HH, et. al., it is probably a very low probability.
BGMO Suspended
Game over folks. The fraud is so blatantly obvious it isn't funny and now the SEC knows.
If, As Claimed, There is $$
Why is the stock down over 70% since the last communication from the company in January? FACT
Why has the stock's status been downgraded to Stop? FACT
Why has the company said nothing in six months? FACT
Why did VSTA say in their 10-K that BGMO defaulted on the SPA? FACT
Why has the vaunted lawyer's letter gone missing? FACT
Why has not a single promise by HH bet met? FACT
Why is not a single fact independently verifiable by an investor? FACT
THESE ARE NOT OPINIONS, THEY ARE VERIFIABLE FACTS
Because the whole thing is a package of lies, deceits and frauds. There is no money and it appears HH isn't even trying anymore.
That is the definition of speculation.
Agree, one can speculate, but you have to be prepared to lose it all. Guessing, rolling the dice, or whatever one wants to call it is a very hard way to make money. It also assume, given the illiquidity of this stock, that you can actually really buy it without moving the price and then if it pops sell it without moving the price. Tough road to hoe in such an obvious fake company.
No One Will Speculate at Current SP
IMO this is about as much of a fraud as one can find. The facts never add up, in fact they frequently conflict, combined with total silence from management - not a peep since January - prove this is all a lie.
But, one has to ask will anyone speculate on the shares at the current price (notice I said speculate and not invest. One cannot invest in a company that has never filed an audited financial statement, doesn't keep investors informed of its actions, etc.)?
The answer is clearly no!
The reasoning is simple. Let's assume that much of what BGMO has said is in fact true and there is in fact money. In which case the stock will, as some have argued, sky rocket. On presentation of any actual real, independently verifiable evidence there would be big gains to be had. These gains would be so large that no one would care if they miss the initial move in the SP, there would still be much money to be made.
Alternatively, what if they are all lies as I and many others contend. Then the stock will continue its inexorable slide to sub sub penny status and total irrelevancy. This is clearly the view of the market. Since the latest round of promises, documents and now silence the share price is down massively.
So looking at the trade off, I argue no one would speculate on this stock at current prices when faced with losing all versus waiting for any actual evidence.
Then why...
If BGMO is alive and kicking then:
- why has there been not single word, in any form, from the company since January 30, 2013?
- why has the stock declined by 70% since the last word from the company?
- why has BGMO not said a word on their investment into VSTA?
- why has BGMO failed to meet its commitment to VSTA? They are in default. SUrely a company with the claimed financial resources could manage a measly $36 million share purchase, can't they?
- why did the company relinquish its hard won current status? I thought this was supposed to by a big deal?
- why is this management so opaque? Where are the audits, press releases, etc. they promised repeatedly? Did they lie?
For a company with so much money the stock trend is in one direction, down.
VSTA is Broke
Even a cursory reading of the 10-K, and the financial statements, confirms what many suspected. VSTA is out of gas, and what money it has had has not been well spent. High priced IR efforts? High salaries to executives as cash disappears? Any revenues, no? Any actual business prospects, nope?
Prospects for raising many = none. If they had the prospect to raise money they never would have become involved with BGMO.
Skills of the CEO = none. If he is what he claims would he have gotten the company involved with BGMO, nope. A first year MBA could tell you that BGMO has no money and is a hollow shell with no prior investing experience, much less in highly risky biotech.
The only question is when will investors wake up, see the facts before them and start selling the stock. At that point sub penny sounds about right.
This is an insolvent company without any prospects, IMO.
Game Over Folks
The only thing left is the final and total collapse of the share price. If VSTA was smart they would sue BGMO for the fraud that it is, but don't bet on it.
As if there was any doubt, BGMO has once again not performed. This isn't about excuses this is about the lies told by the CEO and a total history of non-performance.
As soon as any more stock hits the market, and it will, the PPS will drop in big chunks. Will we see an occasional pop on small volume to gloss the PPS, yup.
HH's fantasy of creating a financial giant has been definitively proven to be fanciful farcical claims. Just ask VSTA, or read what they said in their 10-K.
The good news is no reason to check in from time to time to see how this slow motion train wreck is doing as it is now becoming fast moving. Frees up some time. The bad news is, to be honest, reading this stuff has been kind of entertaining.
Maybe I'll be lucky and end up the Pakistani traitor list, though I have no idea what that is? If anyone knows how I get the secret emails they distribute please let me know.
Finally, does anyone know if HH is in fact still alive. He has been notoriously quiet?
A Convenient Excuse for HH?
VSTA was supposed to file their 10-K yesterday which they failed to do. This puts them out of compliance with SEC filing requirements. Its too bad as I was looking forward to seeing how they kept the lights on without any cash and what the auditors say about them as a going concern. And, of course, how they discussed subsequent events, namely the BGMO investment.
But alas not a peep on the 10-K or on the second tranche of BGMO's investment.
I suppose BGMO can now say they stopped the investment because VSTA couldn't stay in compliance with their filings, I know don't laugh too hard, but as BGMO hasn't said a single word about this in any form and probably won't as they went dark months ago one suspects they will say nothing now.
But claiming that VSTA not filing is why BGMO did nothing is a convenient way to kick the can down the road. Neither company treats their investors, nee owners, with any respect.
No 10-K, Going Dark?
VSTA was supposed to have filed its 10-K yesterday and they missed the filing deadline.
Too bad, as I was looking forward to seeing the auditors opinion on them as a going concern, how they were able to keep the lights on without any cash and the section on subsequent events discussing the BGMO investment.
Further, BGMO was supposed to fund the next tranche by yesterday and you would think there would be an 8-K discussing that. I wonder how VSTA will finesse this one.
But, if they are taking the company dark we'll never know.
The "tell" was getting in bed with BGMO in the first place. The last act of desperation.
Did the Check Clear?
I really thought I would get an email from the Wall Street Journal discussing BGMO's investment in VSTA. Nothing.
Can't wait to read the 8-K, when and if there is one. I wonder what the story will be this time?
Big Day Tomorrow
I wonder if VSTA will hold a check signing ceremony with BGMO to mark the $475,000 investment. This is momentous occasion that really needs an appropriate ceremony. Do you think CNBC will be there?
Excellent recap of the sad BGMO saga.
No reason to incur commissions selling. IMO everything is over except for the final collapse in the share price.
The Autilion AG Dilemma
All statements regarding Autilion are from SEC filings and PRs from VSTA. Yet, nowhere does BGMO either claim or acknowledge a relationship with Autilion. Further, we learn from the VSTA filings that HH is the CEO of Autilion.
Yet, the Autilion AG website, which is quite outdated, is for an automotive consultancy with no mention of either HH of BGMO Autlion AG Website
Once again any attempt to independently verify actual facts relating to BGMO only produce more questions, not answers. The standard modus operandi for anything BGMO, and now VSTA, related.
If BGMO had access to the money they once claimed they would have made good on the SPA, not missed three closings nor ultimately only fund $25K.
There is no money.
Management Must be in On It
IMO there is a very strong circumstantial case that management of VSTA is in on purposefully misleading investors
1) After three failures by BGMO to meet the terms of the SPA, with key terms of which kept changing, the company settles for a measly $25K. If management is meant to be "smart" and have finance backgrounds they can't really be taken in by BGMO. Either way they lose.
2) The company has to have long ago exhausted its cash. They burn $1 MM per quarter, had $24K on the last filed balance sheet and took in $750K months ago. How are they paying the electric bill, much less paying highly talented researchers.
3) They are barely meeting the minimal requirements of a company. There have been exactly zero breakthroughs by them, they are reduced to having a poster at a major conference. Revenues are nowhere in sight.
4) They have the same IR firm as BGMO. Any IR firm that has a lot of stock to sell.
5) Anyone surprised they didn't meet the filing deadline for their 10-K. I'm not. What is so complicated.
6) When you go to a funder of last resort, BGMO, who has no money, nor experience investing, np knowledge of "bleeding edge" bio research, actually they have nothing including an office you are de facto admitting that the gig is up.
7) So when management puts out a PR continuing this game they by inference are in on it. As they have never filed a proxy or held a SH annual meeting it would be very interesting to see where all the grant and investment money they have raised has gone. Singh's pockets?
VSTA has no money, BGMO has no money. Game over.
Total nonsense
Where is the legal relationship between BGMO and Autilion, which is a small automotive consultancy. Mr. market doesn't believe any of this, but nothing new there. And, of course, complete silence from BGMO.
No cash, nothing real.
Name one investment they have actually closed on?
Can't because they have no money.
Broker Dealer - nope
VSTA - nope, missed the dates three times.
Clearly a global investor and no one believes a word they say as it is all made up.
You Are Exactly Right
The end game for VSTA is in sight. The other points I would add to your analysis is the decisions that Platinum faces. They will look to protect their investment and if the II article is correct understand how to maneuver in distressed situations. I still say they may force a pre-packaged bankruptcy if they think there is value here and sell the IP to another company.
The odds of fresh cash from a new investor coming into this mess are extremely low. And as you point out, you need money to get an audit and you need audited financials to get an investor. Good luck with that.
Answer 1 Question Please...
How is VSTA paying its bills. A small number of people profess this is a great investing opportunity. But, by simple math VSTA long ago ran out of cash. How are they even paying to turn on the lights?
It is too easy to say that now that they must be realizing that BGMO has no money that they will readily find it elsewhere. Where and when? Should have happened by now.
So how does one recommend a stock that is out of cash and never, ever seems to trade (which means paper gains are just that, paper. try and sell)?
To continue the analysis...
VSTA is a little hard to parse. On the one hand they have been reasonably steady in filing with the SEC which is a good sign. I am agnostic on their science, other than this work is not typically done by a public company due to the large cash burn. On the negative they should have run out of cash months ago which raises the question of how are they paying to turn the lights on.
The connection to BGMO is a giant red flag. Why would anyone tie up with BGMO? My guess is VSTA realized they were hitting the wall financially and really had no where else to turn. They have a common relationship with Mission IR, who is in a web of IR firms, including QualityStocks (I suspect they are one and the same) who holds a big slug of VSTA stock they want to sell; see their disclaimer. So I speculate that Mission connected VSTA to BGMO hoping that an announcement would create the liquidity they needed to sell. Only thing is it didn't work. VSTA is less than illiquid.
The wild card in this is Platinum who appears to have invested real, hard cash in VSTA. But in my view they hold all the cards and if they like the technology may decide to force VSTA to go through bankruptcy and they would come out owning the whole thing.
Why Bankruptcy is a Real Option
Much of the focus in investing in a company like VSTA is the potential reward of a major scientific breakthrough. The challenge for the company is marshaling the financial resources to have a shot at making the breakthrough. Keeping in mind that most don't succeed and due to the high risks involved in these types of endeavors a lot of this type of work is done based on grants at universities where one doesn't face the consequences of failure in the same ways.
So the challenge is finding capital, which is where VSTA again finds itself. So one needs to put oneself in the position of the capital provider and when they do their due diligence how their thought process might proceed. They will of course evaluate VSTA's technology and progress. Then they will turn to the financials, this is where the real challenge is likely to occur.
As a general rule early stage, developmental companies tend to be debt free. With revenues potentially years off they do not have reliable means to service the debt. This is not VSTA's situation as Platinum holds senior debt and while I would have to reread all the terms and footnotes combined with the fact that we need to see the 10-K one can project with high confidence that VSTA has not been able to service the debt. That puts a lot of cards into Platinum's hands as any deal that doesn't improve their position they can effectively veto. Any potential investor will understand this.
Also, any potential investor will a) understand that VSTA is in financial distress which will give them significant leverage, b) that they need real time to do their due diligence, and c) will try and determine the cheapest way to invest. Genetically early stage investors do not like to have part of their investment go to bail out a prior investor (in this case Platinum). Due diligence also includes legal evaluations of the various "partner" agreements and this is time consuming. So take the most recent Duke U. announcement. We actually do not know who owns the intellectual property coming out of that work? Even if VSTA says they own it, which as of yet they have not said and one would suspect that Duke owns it as they led the press release, the lawyers will still need to carefully look at this. Time and money on the investor's part.
Therefore VSTA management has very little negotiating leverage, if any, with any potential investor and as the financial clock is ticking (again forecasting off the last financials VSTA is already long out of money) distressed investors may conclude that allowing, or forcing, a pre-packaged bankruptcy is the cheapest way to get hold of these assets.
Being sanguine that VSTA management will quickly and easily pull a rabbit out of a hat is a very risky bet to take, reinforced by the total silence by the company which puts them out of compliance with securities regulations.
Platinum Holds All the Cards
So lets think this through...
Platinum provided the most recent round of cash and have claims on the company's property; as per SEC filings. They have just agreed to restructure their deal based on VSTA raising a huge amount of cash; as in enough to give them several years of running room at current burn rates.
By all appearances BGMO didn't perform, otherwise VSTA would have filed an 8-K by now.
So, what must Platinum be thinking? The deal with BGMO didn't go through and I bet they are looking into why and will quickly see that BGMO is a scam without cash and I am willing to bet this has caused a difficult conversation with management.
In order for a new deal, which will not be easy to find, Platinum effectively has to agree. It is in Platinum's interests to improve their position in all this. So any deal has to at least match what "BGMO put on the table". In the event of failure Platinum is the creditors committee. They may say let VSTA go through bankruptcy then we reorganize things and own the whole company.
That is the benchmark that VSTA has to satisfy. Multi party agreements are much more difficult and complex to complete. Therefore they hold all the cards and will force the outcome that is best for them, not for current VSTA Shareholders.
The Power of BGMO
Well, well. So the witching hour is past and all we have from both BGMO and VSTA is dead silence. No PR or SEC filing that the deal has either closed or is delayed.
IMO the only winner is Mission IR which is announced that they have stock to sell and has, or does, support both companies. In some ways this looks like a cooked up IR scheme to create liquidity that doesn't seem to have worked.
But the real power of BGMO is its ability to concoct these stories of vast fortunes and skills yet nothing real ever happens and to live to do it again.
This story has many, many entertaining chapters that are yet to be written. And every time the secretive investors who are given free stock can sell they will.
Bottom line the day a $36 million strategic investment was scheduled to close and 100 shares of BGMO trade and zero VSTA shares trade (despite the massive dilution the deal implies). Mr. Market isn't fooled.
I genuinely look forward to the next scheme. They've been great over the last ten months.
You will learn nothing...
That is Mission IR's phone number in Atlanta. All they will do is repeat PRs. They aso have a conflict as they have a lot of VSTA stock to sell.
VSTA = BGMO
The reality is that VSTA brought this on themselves. They chose BGMO as their "strategic financing partner". As a result they caused people to go look at them and their SEC filings and financial statements.
What does one find, VSTA is effectively broke and in desperate need of cash. People claim they will just get it elsewhere. This is doubtful as financiers will see their cumulative losses, their lack of meaningful progress to a revenue-able product, they are years and millions of dollars away. Money isn't found quickly for developmental companies. It is unlikely to happen now.
If you like what they are doing, and get to see the latest financial position, the better strategy is to let them go through a pre-packaged Chapter 11 to clean up the balance sheet, wipe out the current liabilities and current stockholders and then buy the "assets" on emergence. Assuming the assets have any value.
One has to seriously question what VSTA management was thinking getting into bed with such an obvious scam as BGMO, did they do any due diligence at all? Also, why all of a sudden has VSTA gone quiet and fallen out of compliance with SEC filing requirements. There should have been an 8-K posted either confirming that BGMO bought the shares or didn't.
The totally slack financial management is a major red flag no matter which way one cuts it. Either VSTA was duped or VSTA was part of the scam.
As to not wanting bears posting hear, too bad. That is what makes a market.
One last thought. We now know that VSTA will sell massive amounts of stock at $0.50 / share. They are telling you they think the stock is massively over valued at the current price. Fact! Therefore no one in their right mind would buy this stock here until they know the financial distress has been solved and no news on the business development front will move the stock until this happens IMO.
There will be no lawsuit, and...
A) No lawyer will take on a suit against BGMO on contingency as BGMO has no assets to recover from, HH has no real personal liability, and the 8-K gives him an out as part of a due diligence process.
B) VSTA is in desperate need for cash they will not spend tens, if not hundreds, of thousands of dollars pursuing BGMO.
C) More importantly, why has VSTA gone dark. Where is an 8-K on the deal? Where is a 10-K or announcement of financial results?
D) It will be very hard to find a replacement for BGMO. Firstly, the deal with BGMO shows that VSTA is willing to sell stock at a huge discount to market - implying that they think the stock is very expensive here. Also, a lot of the money will go to pay off Platinum and money in pre-revenue transactions never likes those terms. This will be very hard to finance.
Duke, really?
Where is there even attribution in the Duke article? Where is there any independent confirmation? I for one would like to see it.
With what money?
Per the company's SEC filings they operationally burn about $1MN per quarter. They took in $750 earlier this year from Platinum. They started the year with $24K. They are out of cash.
How do they conduct research much less pay the rent, turn on the lights, etc.?
They have produced no revs and still show no signs of revs anytime soon.
How do they keep this going?
No Shock, just reality.
I am intimately aware of the role capital raises play in emerging companies. That said, I laud your faith in a company that is in effect bankrupt, is late in filing their most recent 10-Q, doesn't speak to investors other than through a conflicted IR firm, doesn't hold shareholder meetings, etc.
As I recall you have even asked for a conference call with management which was met with silence. That speaks volumes.
VSTA needs cash, and needs it yesterday. If in their desperation they turn to such an obvious fraud and scam as BGMO then one has to question their judgement as management. BGMO has changed the deal twice without paying VSTA a cent. Doesn't this concern you?
And saying that VSTA will just get the money elsewhere is called denial. If they could get the money they already would have done it instead of stooping to dealing with BGMO.
Once again, the stock appears not to trade. Tells you something. Any potential buyer, which is what is needed, who reviews this situation (its called analysis and due diligence) will do nothing until their enough cash for the company to keep the lights on. There is no sign anywhere that said cash is forthcoming.
This remains a financially dubious and speculative biotech play. Most of them fail. This right now looks to be a failure.
No Shock, just reality.
I am intimately aware of the role capital raises play in emerging companies. That said, I laud your faith in a company that is in effect bankrupt, is late in filing their most recent 10-Q, doesn't speak to investors other than through a conflicted IR firm, doesn't hold shareholder meetings, etc.
As I recall you have even asked for a conference call with management which was met with silence. That speaks volumes.
VSTA needs cash, and needs it yesterday. If in their desperation they turn to such an obvious fraud and scam as BGMO then one has to question their judgement as management. BGMO has changed the deal twice without paying VSTA a cent. Doesn't this concern you?
And saying that VSTA will just get the money elsewhere is called denial. If they could get the money they already would have done it instead of stooping to dealing with BGMO.
Once again, the stock appears not to trade. Tells you something. Any potential buyer, which is what is needed, who reviews this situation (its called analysis and due diligence) will do nothing until their enough cash for the company to keep the lights on. There is no sign anywhere that said cash is forthcoming.
This remains a financially dubious and speculative biotech play. Most of them fail. This right now looks to be a failure.