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Where do you see that? 2.5 B Outstanding
10 "Business Days" not 10 Days. So Monday is not the final day for the merger.
I'm still here just waiting patiently since Oct. 2012
MoMo: How do I join the SIT circle? I am a long and haven't sold a single share since I first bought srge back in September. Since then I have bought more shares each month and continue to add to my position.
Thanks Banker
Got my dividend from fidelity. It showed up on 12/28 and is still in my account. No sign of reversal.
MoMo: It was mentioned awhile ago that a small number of longs controlled the float (215 M Shares). What happens when they all pull their certs and someone like me that has two million shares try to pull my certs? They cannot issue more paper certs like they did with the air shares from naked short selling correct? So how would I get my paper certs if they have already sent out 215 million to the small group of longs?
I appreciate your help and input.
Banker
MoMo I have never pulled certs before. How do you trade them in the future? If they are air shares how do they give me the certs?
Thanks I tried. Go SRGE!
Bio I think I know who it is. Is it Sandstorm Gold Ltd (SAND)? They are Canadian trade on NYSE at $12.43 a share. Is that who SRGE will be doing the Joint Venture with? If that is the case we may still have a buy out with Southern Copper and a J.V.
Long No. ?? with 1.61M shares. It looks like there is at least 100M air shares above the float. Looking forward to the next dividend and short squeeze.
Thanks Bio I am comfortable with my shares since I received the dividend. I was just curious what would happen if the Nsser's did not have the ability to cover or deliver equivalent shares by paying cash because of the increase in share price and the amount of air shares. Thanks for your wisdom.
Bio2: What happens if the individual / entity that is naked short selling has created too many air shares and cannot cover because they do not have enough funds to cover now? What happens to the investors that own those air shares?
Thank You debu--So worst case scenario if we don't have a decision by May 1st then we should have one by May 15th assuming that the hearings are held between the 8th and 15th of every month.
Banker
Does anyone know how quick a decision is made at these MLRB hearings? Do they make a decision at the hearing or does the decision come later (weeks/months) after the hearing?
Looking at last years MLRB Agendas they seem to fall between the 8th-15th of every month so if we miss the April agenda then we should make the May Agenda and have the hearing by May 15th.
thanks,
Banker
Agreed I think golferman was reading it wrong. This is from the 8-k filed on pinksheets:
"In connection with the March 2012 Financing, the Company and certain holders of its existing convertible notes entered into an Amendment Agreement (the “Amendment Agreement”), which, among other things, provided for the following: (A) the predetermined conversion price adjustment provisions of the September 2011 Notes were deleted, (B) the requirement for the Company to effect a reverse stock split was deleted, (C) the holders of existing convertible notes agreed to amend the put rights of such existing convertible notes, currently effective starting on March 31, 2012, to require the approval of certain requisite holders (as defined therein), (D) the entire proceeds held in the Blocked Account will be distributed to the holders of the H Notes and an equal amount of H Notes will be redeemed by the Company at face value, and (E) the H Warrants were amended so that they would become immediately exercisable.
Banker
josey--I agree with you that a a R/S would be necessary to move to a bigger board if Colorado wanted to keep and grow the company. However, if the company's goal was to identify the assets in the ground and restart the mill in order to sell the whole operation would the R/S still be necessary?
Banker
Thank You Nutriman I will look into it. Wouldn't they be required to mention the notes like the others did on the SC 13G if they had current obligations with GENTA?
Banker
QuietTim- I think you are right about the new institutional investor. I don't think they are a current note holder of GENTA with convertible debt. Here is my reasoning:
There were four SC 13G filed Feb 14, 2012 that consist of the current note holders with convertible debt. In each one of these SEC filings they mention specifically the notes (G, H notes etc.) involved with GENTA. These note holders currently have 39.6 percent of the OS shares.
The new institutional investor(Sabby Management LLC and Hal Mintz) filed there SC 13G on March 6, 2012 and there is no mention of any notes. If they were current note holders and had the option to convert debt into shares I think they would have mentioned the notes in the filing like the others did. So IMO we have a new institutional investor who owns a large percentage of the OS shares.
Banker
I definately think they were denied for a reason and whether they will be able to split again is in question. I listened to a conference last year where the SEC, FINRA, the DTCC and other Retail Brokers met to discuss problems (such as pump and dump schemes, market manipulation, toxic financing, etc.) in microcap trading. The DTCC has come down hard on several penny stocks recently and IMO I think we will start to see some regulation. I think FINRA was responding to the abuse of reverse splits caused by their toxic financing deals. I do believe FINRA is trying to protect shareholders.
IMO I don't think we will see a reverse split by April 16th according to the recent amendment or even this year for that matter. I think the reason for the amendments is because they are in talks with potential partners and are waiting to close a deal rather than rework all of the existing notes just to change them again when they sign a partnership agreement. If a partnership agreement is not in place by April 16th then I think they will just file another amendment with a new deadline until an agreement is worked out with a new partner. This is just my opinion so take it for what it is worth.
Banker
I agree fmrick we should be entitled to the reason for the denial and Genta should have given us more info other than just saying we were denied. I just want to know if they will be allowed any more reverse splits.
Banker
Sorry you are correct it wouldn't be 14 months I didn't notice the Sept 11 date at the bottom of the slide so it looks like November-December this year at the current burn rate based on the conditional financing at 8.5 million.
Thanks
Banker
fmrick- I did notice that from the Sept 2011 conference to the most recent conference the projected launch changed from 2014 to 2015. And I also know how slow the FDA works in everything they do so your time frame could be accurate.
In my opinion I still think phase III will start sometime this year based on where they are currently at and not 18 months from now. They have completed the end of phase II meeting with the FDA and now just need to complete the final trial design and get the SPA. Also, they have currently accrued patients for a phase III trial in Taiwan. Things can go wrong and this time frame will be dependent on what the company can do so I could be wrong.
As far as cash goes they have enough for a little over 14 months based on the current burn rate of 1 million per month. I know that once they start phase III the monthly burn rate will increase and so I think they will have the partnership agreement in place before phase III starts. (purely speculative)
If they do get the SPA (Special Protocol Assessment) approved this year then I think it will cut the overall approval time down by a year so they could meet their projected approval(s) within 3 years. The only approval from FDA I would expect within 3 years is second line gastric. I also think they will get approvals in gastric in the other countries within that time frame as well.
From my understanding of Special Protocol Assessments once GENTA and the FDA approve a trial design for phase III. Then Genta will start accruing patients for phase III. This is what usually takes the most time. I have seen some SPA's were the company only had to accrue half of the desired patient population. Once they did that then they could use the data for overall survival on that half and if it met the criteria of the SPA then it would constitute an approval. That is why I think the approval will happen within the companies projection of three years. Because I don't know what the SPA will read or even if they will get an SPA this is just my projection and is purely speculative.
Keep in mind this is just my opinion and I hope the company's timeline is accurate but nothing is set in stone that is why the company states "projected" approval(s). I am just looking to make money in this one and I don't mind the wait.
Banker
The events calendar on Genta's website.www.genta.com
Banker
Upcoming Events:
Feb.13-14th---14th Annual BIO CEO & Investor Conference Also we should have an 8-k this month to either amend the existing notes or possibly new details of a partnership agreement.
March 31-April 4th--- AACR Annual Meeting
June 1-5th----ASCO Annual Meeting
IMO I also anticipate between now and mid year 2012 the following:
-FDA Special Assessment Protocol Granted
-Start of Phase III Tesetaxel trial in Gastric Cancer
-Announcement of a Partnership Agreement
We will see what happens.
Banker
Sorry Rudy I wasn't trying to correct you I am a very detail oriented person so I catch little things here and there. I see your point and I agree with you they have destroyed their own stock from the crazy financing.
IMO I think they diluted more than usual this last month thinking they were going to get the reverse split. It will be interesting to see if it continues at this pace two weeks from now when we get the next 8-K
Banker
Rudy it is 204 million NOT 400 million over the last two weeks check your figures again from the 8-Ks:
1/13/12 "The number of outstanding shares of Genta Incorporated common stock par value $0.001 as of the date of this filing is 1,529,054,259."
1/27/12 "The number of outstanding shares of Genta Incorporated common stock par value $0.001 as of the date of this filing is 1,733,460,585."
The difference is 204 million not 400 million. I think most of the shares were diluted before the final denial letter from FINRA on the 23rd. IMO The next two weeks will be more telling when the 8-K comes out than the last two seeing that Ray thought he was going to get the split. If the dilution slows down he may be trying to minimize the outstanding shares before a partnership agreement is signed. If it speeds up and is greater than 204 million then we should see lower prices.
It will be interesting to see what his long term strategy will be as far as moving back to the big boards or staying here in the OTC market. If he wants to get back to the big boards he will have to minimize dilution and keep the outstanding as low as possible so he can bring the pps back above $1.00 It will be difficult with the current share structure and will even be harder the more he dilutes.
Banker
GNTA-Conversion Price is NOT .001
According to amendment 11 "initial conversion rate of 671,040 shares of Common Stock for every $1,000 of principal and accrued interest due under the notes (the "G Notes")" this would equate to .00149 as the current conversion price. The amendment also stated that:
fmrick-
Keep in mind folks earlier this month from the OneMedForum in San Francisco Ray mentioned that he was in talks with more than one potential partner. IMO If a partnership is signed and announced then we may just have our reversal of the multi-year down trend we have been in due to the dillution and reverse splits.
Banker
It is anyones guess as to whether the pps will go up or not but in regards to the r/s there will be none by the 15th or possibly ever again. The company still has a lot of convertible debt that can be dumped on the shareholders or they can renegotiate the terms of the notes with a suitable partner.
I think a partnership agreement may come sooner than later now seeing that they will need the money as they move forward with Tesetaxel.
Some on this board will now claim that it is the end of GENTA because they will be in default but IMO that will not be the case. They have been around 20+ years with a blockbuster drug. I remember back in 2008-2009 when they were struggling with financing due to the credit crisis and had an unsuccessful drug (Genansense) but yet they still seemed to survive after renegotiating the notes and warrants several times.
As far as pps goes the market will now dictate what the bottom will be. If the company decides to unload billions of shares all at once then the bottom price will be much lower. If the company decides to control the dillution then the price will fluctuate. If the company signs a partnership agreement and reorganizes or pays off the existing debt with the proceeds that come from the partner then our pps should be higher. At least people can accumulate for the time being without the fear of a reverse split so it is anyones guess as to where the bottom price will be.
Banker
GO FINRA!!!
That is the question and it will depend on the reverse split. If they do get the split approved I think it will be their last at least for this year. I cannot see FINRA allowing the other 2 planned splits happening this year seeing how involved FINRA has become recently.
I think there are a lot of investors on the sidelines that want to invest in GENTA specifically for Tesetaxel but they don't know when to get in because of all the reverse splits. I think that once this issue is resolved then people will start to accumulate for Tesetaxel.
Milestones that I am looking for in 2012 for GENTA are:
-Tesetaxel Special Protocol Assessment for Gastric Cancer: This will speed up the final FDA approval for Tesetaxel in Gastric Cancer possibly end of 2013 or beginning of 2014. Genta stated they should be to market in 2014.
-Start of Phase III Trial for Tesetaxel in Gastric Cancer
-Partnership Agreement Signed
All IMO of course
Banker
Sorry I don't know FINRA's track record on appeals. I do think the reason for FINRA's involvement was due to all of the toxic financing deals and multiple reverse splits within the last few years. I think FINRA is actually acting in our behalf.
"Moreover, the new rule authorizes FINRA to not process a request to announce a corporate action if FINRA determines that the request is deficient and not processing is necessary to protect investors and the public interest and to maintain fair and orderly markets."
Banker
Zaxdada- The company filed the appeal in December and the FINRA appeal committee meets once a month to make decisions on the prior months appeals. So the committee should be deciding this month on GENTA's appeal from December. I think we will know for sure before Feb 15th what will happen regarding the reverse split.
Appeal Process
"If FINRA Operations determines that a request to process a Company-Related Action is
deficient, FINRA will provide written notice to the requesting party. The written notice
will state the specific factor(s) that caused the request to be deemed deficient. The
issuer or its duly authorized representative may request an appeal of such determina -
tion by submitting a written request for an appeal to FINRA Operations within seven
(7) calendar days after service of notice of the deficiency by FINRA. A three-member
subcommittee composed of current and/or former industry members of FINRA’s
Uniform Practice Code Committee will review the appeal. The written request for an
appeal must be accompanied by proof of payment of the non-refundable Action
Determination Appeal Fee and must set forth with specificity any and all defenses to
the determination by FINRA Operations that a request is deficient.
While the appeal is pending, FINRA will stay the processing of the Company-Related
Action. The UPC subcommittee convenes once a month to consider all appeals received
during the prior month and will render a determination within three (3) business daysfollowing the day the appeal is considered by the UPC subcommittee. The UPC
subcommittee’s determination will constitute final action by FINRA. If the issuer or its
duly authorized agent fails to file a written request for an appeal within seven (7)
calendar days after service of notice, FINRA Operations’ determination shall constitute
final action by FINRA."
Banker
Questions Answered Regarding Reverse Split
In early December 2011 Genta attempted to do a reverse split the same one that is in question now. The 8-K at the time read "absent any further waiver or amendment, the reverse split must be implemented by December 15, 2011." FINRA the regulatory agency denied the company's request and so the company filed an appeal. The answer to the appeal did not come by Dec. 15th so the company amended the notes (11th amendment) and a new 8-K was filed stating "absent any further waiver or amendment, the reverse split must be implemented by January 15th, 2012."
Obviously FINRA's decision on the appeal didn't come by Jan.15th or the split would have been implemented so the company decided to amend the notes again (12th amendment)and the new 8-K reads "absent any further waiver or amendment, the reverse split must be implemented by February 15th, 2012."
The must be implemented is irrelevant at this point seeing that it didn't work the last two times December and January. The ball and the decision is completely FINRA's not GENTA's to make. If for some reason FINRA approves the split how easy do you think it will be for them to do another one this same year. The company had planned on two more this year but I think those plans are changing IMO.
Banker
fmrick- I have done the math several times and they DO have enough shares in the authorized to cover all of the conversions based on the current conversion terms. (671,040 shares for every $1000 converted) If you converted just the new financing of 12.7 million that only adds less than 9 billion to the outstanding. If you add the rest of the convertible notes to the 12.7 million then the total OS becomes less than 17 billion. I have looked at multiple scenarios and I don't know what you are talking about. The pps has held above the old conversion price so I don't see how they don't have enough shares to cover all conversions. Please enlighten me.
thanks,
Banker
SmallCaps- FINRA denied the R/S in December so GENTA filed an appeal. The appeal process must take longer than 30 days so the company keeps filing 30 day extensions with their note holders until they are approved by FINRA. FINRA can still turn down the appeal which would mean they won't be able to do the split at all.
Banker
elleryqueen- Here is the quote word for word from the 8-K "As a result of the Eleventh Amendment Agreement, absent any further waiver or amendment, the reverse split must be implemented by January 15, 2012." I highlighted "absent any further waiver or amendment" because people fail to mention that option as a cure for the default. This was the 11th Amendment to the notes and warrants which shows they have amended it plenty of times before so what makes anyone say that it cannot be amended again.
IMO If FINRA rejects the reverse split then my guess is that we will see an amendment or a waiver. It will also put pressure on the company to partner sooner than later. "The Company sought this amendment to the G Notes to facilitate the continuation of ongoing discussions regarding corporate partnership opportunities for Tesetaxel."
As far as the Reverse Splits that were approved by the board of directors were 2 for 2011 (up to 100 to 1) and 2 for 2012 (up to 500 to 1). The one that is in question right now with FINRA is the 2nd for 2011.
insert-text-here
Banker
From what I can see there is still no news of the approval or denial of the appeal. The message you read may have been from another message board like yahoo and they didn't know what they were talking about.
The co. did however just file an 8-k "The number of outstanding shares of Genta Incorporated common stock par value $0.001 as of the date of this filing is 1,529,054,259."
I guess we will have to wait till Tuesday to confirm either next week will be the week of news good or bad.
Banker