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The reason from the beginning for me to share what possibly could be happening is so that if the shareholders are informed then they might not dump their shares for pennies on the dollar. I personally will not sell at these prices and I believe others feel the same exhibited by the spike in the price coupled with the news.
Paulness everything you say is true but you have to wonder why venture capital is interested in CYGX. Venture capital by definition is private equity. Ignoring the facts wont make this go away.If you look at this from an investor standpoint not a scientific one then it makes sense.Its all about making money to a venture fund...BTW..I hope that Im wrong.
The reverse split would come after NVF had a controlling interest. One company in the NVF past had the private company taking 95% and the public 5%... 19:1 ratio..so if Cygx reversed plit 20:1 at $.25/share then the stock would value at $5/share...which is the initial requirement to be listed on the NASDQ
If you really think about it....the little investor..all of us...are paying for a venture fund failed investment. Most of our cost averages are a lot higher then any future share price and wont sell and new investors coming aboard see potential with a merger that will allow the venture fund to exit. Will the potential ever materialize?
This is how I envision a RM. Hypothetically of course...CYGX announces a merger with a private co. Stockholder vote is then required. NVF along with a few major stockholders...add a name here...have gained controlling interest...which would explain the rise in the shareprice. They vote for the merger and a new company is formed. Lets still call it CYGX or whatever. Everything that Cowsert has promised still can happen.. the lab...moving to NY..listing on the NASDQ..Now the devil in the details. New stock has to be issued and most likely a reverse split to value the shareprice adjusted with the equity that the private co. brought to the table. NVF now has a way to get out of its venture with the private co. by selling its new public shares. I believe there is a time period required before they can start dumping. In anycase..we know very little about the private co. because they are not required to disclose their financials. They might have milestones that look great to the average investor which would help drive up the shareprice for NVF to recoup some of their invested money.....All of this is speculation of course. The reason it is called a RM is the private co. is acquiring the public co. and it can go public without a lengthy process. The examples are on the link I have provided in my last post.
Actually it was 11:00 pm...DD will tell you why...BTW..a new alias was born because I couldnt remember my old one...thats what happens when you dont look at this board for years.
Infinity with DPII is the type of reverse merger we could hope for...possibly Alios with CYGX.
Infinity Pharmaceuticals, Inc.
Reverse merger into Discovery Partners in 2006, NASDAQ: INFI
Integrating unique approaches and capabilities in synthetic chemistry, chemical genetics, informatics, and biological screening, the company’s aim is to transform the drug discovery process and to increase its success rate.
www.venturefund.novartis.com/index.php?id=323
Speculating...
Alios is a private company that may have technologies or assets that would make a merger w/ CYGX attractive to private investors who are looking for a public market exit strategy. NVF (i.e. Dr. Campbell) is both on CYGX and Alios boards...keep in mind that it could be any (or none) of NVF's portfolio companies that create the reverse merger opportunity.
Speculating further...
A reverse merger may (or may not) increase CYGX shareholder value. It probably depends on whether or not the private company adds real value.
I dont remember you telling the board to sell when the price hit $1.50. I did the DD and thought the IP was sound. What I did learn is that even with sound IP, share holder value is at the mercy of the company's governance. However, that is all water under the bridge. The reason I have spoken up now is that our only hope is to hold on to our shares and educate the shareholders who read this board about a possible scenario involving a reverse merger. Again, I want nothing more then increased share holder value.
Again I own 165K not 175k shares..I wondered why a person like Dr. Murray...Harvard MBA and more...would be associated with CYGX...a company dead in the water. The answer...thats what he does...venture capital..and we all know that venture capital is private equity...usually pennies on the dollar...then I looked at the companies he is on the board with... private companies...so I looked at those companies and found the DOV to EBI merger...DOV was dead in the water with intellectual property not being used. The rest of the story I already explained.If the story doesnt get out and its happening then we have no chance of making any money.The company will be sold for way under its value. So should I have kept quiet and let that happen? Its my money invested like the rest of you and Im trying to do what is right. So you take a deep breath and do some DD instead of cheerleading.
Hey dude..I dont lie...it is what it is...I own what I said...look at the last 5 letters of my alias and maybe you might want to go to school...or be quiet and stop calling someone who does the DD a liar...enough said...I hope that Im wrong and the stock continues its upward climb.
negative only because it might be true not because I want it to happen...think about it...like DOV..out of the ashes CYGX got new life...at least for a short time again....the message if any is not to sell...hold on and make NVF pay for the DNAsyn
Yeah...Lex is moving to New York on his $15k/year salary from CYGX....maybe his 3 million options and possibly a new company might help.
Ive been a long of CYGX for over 5 years...165k shares cost averaged at approx. $.70....I had given up but was never going to sell my shares for pennies...I want to be treated fairly... go search out what DOV shareholders on there old message boards had to say about the reverse merger...here is another link that is too coincidental...http://www.biorelix.com/news
30 miles from our new site
biorelix is a NVF company
please dont call me a basher if you dont list what you own.
BTW...I want everyone to hold not sell...just educating you of what I think is happening
I have no idea of how many and what price Lex owns of shares in CYGX.I have no idea of what a new merged company might offer him either. I am connecting the dots. Dr. Campbell is involved with venture capital...j-curves for private money...he sits on our board now. Dr. Campbell is on the board at EBI. EBI acquired outstanding shares of DOV to gain control and take EB1010 to market pennies on the dollar.
Take a look at this...
http://www.spacebelieve.com/media/ThePinkSheet.html
NVF has Dr. Mundell on its board who is the head of global developement for NVS. Taking it one more step, NVF's Dr.Murray is on the board of numerous private bio-tech companies. One example company is Euthymics Bio, which is a privately held company. "EBI" acquired the majority of shares of DOV then merged the two companies with "EBI" being the survivor. Shareholders of DOV got approx. $.013/share from the now new private company.This could be happening to CYGX. This is what a venture fund does and NVF...Dr Campbell and such...would like to buy CYGX for those prices or something less then what I have invested.Do the DD..look at DOV and see what they were being told...EBI bought DOV for 2 million then raised 24 million in private money based strictly on a DOV product. What can we do if this is the plan for CYGX?
Campbell Murray is on the board of several impressive biotech companies, all of which seem to privately held, partly by Novartis Venture Fund. Does this mean a reverse merger for CYGX? If so, hold onto your stock or we may see this great technology given away for pennies.