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Anyone speak w. mgmt. this week? Wondering what the weekly read/confidence level is of MV on getting a deal done. I know a lot of you don't think it will happen, but just wanted to see what the vibe has been from HQ this week. Possibly looking to add more at these levels (below .18). GLTA. Cheers~
MV gave his ok. So here it is:
Dear Dr. Varney/IR,
I hold ~ 200,000 shares of Cortex and just wanted to follow-up on your progress in securing one or more partnership deals as indicated at the Rodman Conf. Do you still feel confident about securing/announcing a deal within the next 2-3 weeks? The orginal timeframe was given at 30-45 days, but working in biotech/pharma myself, I know these things often take longer than you hope.
Can we expect any upfronts as central to part of a licensing deal? Are you in talks with multiple companies or one company in particular? Also, are you looking at partnering just one compoun, or multiple?
I am particularly concerned about how the proposed doubling of authorized shares may impact the stock price and the company's long term prospects in the absence of any revenue-generating deal over the next few weeks. I generally refrain from contacting management as I know you are busy working hard on these items, but my investment in your company remains a substantial part of my portfolio and there has not been much feedback since the conference. Thank you in advance for your response. Please be free to call or email.
All the best,
........
Response:
Matt,
Many thanks for your email. I can not divulge any information to you which has not been transmitted broadly in a public announcement. I can reiterate what I have already been stated publicly that we have several discussions underway at various stages of development all related to licenses of our AMPAKINE® technology. These are clearly very important to the company and represent the highest priority within our business. When we can make a public announcement about any resultant actions, we clearly will, but it also will need the approval of the potential partner.
Regarding the increase in authorized shares, this is something we believe is critical to the future of Cortex. While we much prefer to get cash from a licensing deal and avoid going back to the markets, in case these deals develop too slowly, or not at all, we need to have an alternative available to move the business forward. We do not currently have sufficient shares available to undertake any financings. Having such a capability somewhat reduces the appearance of “absolute necessity” in the eyes of the partners with whom we are discussing licenses, secondly having such resources available can prevent the company from going belly-up. Both issues are important to Cortex and its investors. It should be obvious that we would prefer not to have to sell large numbers of shares for small financial returns, however, if such a move allows the company to put itself into a better position to complete or negotiate a licensing contract we need to have that capability. Clearly most people negotiating with Cortex know from our filings that we have serious financial pressures on us, and they logically will try to use that to their advantage. However, your vote giving us the approval for the increased authorized shares can remove much of that pressure and potentially enable us to complete a deal more expeditiously or buy the requisite time to do so. I hope my comments help.
I’m happy to answer additional questions on a periodic basis.
Regards,
Mark
Davidal,
You are entirely misunderstanding the sentiment expressed. I believe MV is indicating that by having the ability to raise capital (regardless of the terms) by having shares available to sell means a company's back is not completely against the wall. That ability to raise shares gives Cortex some leverage in negotiating a deal. It means it has the abilty to survive without a partner, at least for the short-term If they have no shares and no $ and potential licensing partners know that, then it is harder for Cortex to negotiate a strong deal as partners realize desperation and realize that a partnership is the only remaining route for Cortex to get financing.
I asked if it was ok to post my email, and will post if I have an okay--though I admit there is nothing groundbreaking in it.
Received email response from MV. I finally emailed MV a number of questions to which he responded at considerable length, albeit stepping around specifics--obviously he can't divulge anything material in an email. I was very impressed in his candor and taking the time to elaborate to such a degree. I will not post my email nor his as I did not ask permission, but I will briefly paraphrase.
Several (3 or more?) discussions underway for Ampakine tech. Did not indicate how imminent any of them are.
They would be loathe to dilute shareholders further, but need the A/S increased as a back-up should negotiations draw out. Other companies realize Cortex's small cash position, increase in A/S at least buys some time/leverage, though they are doing everything they can not to dilute, but rather strike some licensing deals.
IMO - his answers were solid and straight-forward. Hopefully they can close on a licensing deal soon. GLTA.
Mexiatech,
I'm in the same boat--though, only if this hits $5 will I be able to think about a retirement, lol. .45 - $1.50 short term does seem doable if we start to strike some deals. GLTA.
Ok. Just wanted to see if you spoke with IR. The more people that hear the same thing from them, the better.
Where did you hear this?
I'm hopefuly of something with the next 2 1/2 weeks. Hopefully $4 million plus in upfronts and partner takes on all the costs. My hope is, with a new sense of urgency, mgmt strikes several more deals in quick succession. Perhaps sacrificing some leverage in upfronts to get partners to move products along at there cost. GLTA.
Thanks, Taber. Mostly the same I heard from Jose last Friday. It's good we get multiple people to confirm, because I don't feel like calling IR every 2 days or week. GLTA.
I am "wishing" you are correct :). Anyway, the rate of O/S increases (fingers crossed) has slowed and volume has shriveled over the last week. GLTA.
That's precisely what I was told also, though I didn't want to explicitly state the details when I reported back. Hopefully, it all works out. GLTA.
L2 today? Can anyone report on L2 activity today/possibly supply a screenshot? Thanks in advance & GLTA.
On the bright side. The O/S raise this time was much smaller than prior increases. YES it SUCKS to see it increase at all, but hopefully even mgmt doesn't sees the diminishing returns of diluting any furthere down at these levels. Hope I don't soon have to put my foot in my mouth. Cheers & GLTA.
If you're still keeping a list, put my 175K shares for Option 1. Possibly not done accumulating yet. GLTA.
Thanks for the follow-up. Another week or two of hoping and waiting. GLTA.
Ok, it's a little early, but these things can happen in a hurry. With a little help (eh-hem CEO, et. all mgmt. ), this looks poised/hungry to retest the 3.5's. My buy orders went unfilled today, but I'm not disappointed with that. GLTA.
I dig the low volume. Ok, it sucks interst is low. But interest in selling has abated. If the O/S stays below 500 mill, I am a happy camper.
MV's is the strongest I can think of in memory, because it gives such a tight time frame. Lots of companies say they are working to partner something and have lots of suitors, but MV stuck his neck out allowing only 4-6 week wiggle room. That's pretty bold.
Thanks, for making the inquiry. It seems like I've been contacting IR folks left and right lately as my portfolio blows up chunks. Don't have an established relationship w. Cortex mgmt (though I hold ~150K shares), and am content to leave it to others to report back, as they don't need every underwater shareholder badgering them as they try to get deals done, move projects along, etc. I've worked in biotech (IR/corpcom/marketing), and totally understand how timelines work. I was just rather stunned MV made such confident statement about deals forthcoming--hopefully not at the expense of shareholders. Am cautiously optomistic. GLTA.
On the note of news, has anyone pinged MV over the last week to get a feel for if he is still confident about having given the guidance of a partnership in 4-6 weeks (4-6 weeks ago :)? I know these things always take longer than everybody thinks, but I hope things are still progressing. Fortunately, in the background, the economy is holding up in October. I was afraid another collapse might coincide with potential partners fleeing, but we're looking stable right now. It's all on Cortex. GLTA.
I'm not going to guess on the MM's, but it looks like possible dilution is taking a rest today. Expected as much with the IR meeting. Today is retail shakeout. Buyers are scared. I'm happy on days volume stays below 15 million, as it should for a company with an O/S under 500 million. A couple million share buy could spurt this one up to 2, though i don't blame buyers for being cautious as long as their are folks willing to part with shares in the mid-5's. Hoping to get an EOD IR update PT time. Today's PR was fine, but not what we're waiting for. GLTA.
That's the word I got from Jose as well. He was expecting to get clarity as well. He said he would email me with an update. I will post what I can, and follow-up if I don't here back. Pretty p'od about the rising O/S, with no updates. Regardless, this still has a tiny market cap. and the A/S is not bad--yet--even if maxed out. Will someone please move up that bid? I can rest easier once/if it settles back above .175. At least ask seems thinner today. Hoping no more dumping today, with the IR meeting, at least. GLTA