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Well well... Finally someone else is smart here and knows what is going on - just another DM scam hidden in a reverse merger with some other clown as the front man - who got conned to sign financial statements... Sad.
Old Dog - Old Tricks...
Glad to see someone exposing this scam, soon they'll be knocking on HP's door to put the pressure on him.
Perhaps I read the last paragraph incorrectly, I believe there was an earlier discussion last week as to how the company would pay for such new facility, and the comment was directed that they received an offer on the old facility, and per the last paragraph below - my interpretation was they planned to use funds from the sale to facilitate the new purchase... If I am incorrect in my interpretation of that last paragraph, my apologies to the board - never intended to misdirect..
"The Company has received an offer to purchase the building, and is currently assessing the offer."
This sounded to me that when you used "The Company" you're usually referring to yourself".. But again I could be wrong.
ROCKY MOUNT, NC, Apr 18, 2011 (MARKETWIRE via COMTEX) -- PharmStar Pharmaceuticals, Inc. (PINKSHEETS: PHAR), a U.S. drug developer, manufacturer and marketer of the FDA-approved, Over-the-Counter (OTC) liquid pain reliever AQUAPRIN(TM), announced today that it has entered into negotiations to purchase an over three-acre site and 24,000 square foot building for production and research activities in Wilson, NC.
According to PharmStar CEO Howard Phykitt, moving PharmStar's production and R&D to a stand-alone facility can provide greater economic benefits as well as accelerate the commercialization process to bring AQUAPRIN to market.
The property is strategically located in a professional industrial park near a third-party pharmaceutical testing facility. In addition, it is close to many pharmaceutical companies such as Merck; Sandoz, a division of Novartis; Perdue Fredrick; Natures Bounty; and GlaxoSmithKline. Talented pharmaceutical production and research personnel are readily available for hire.
"To better meet FDA CGMP guidelines, it is prudent for AQUAPRIN be manufactured in a facility that has only one tenant," said Mr. Phykitt. "While our current location meets these FDA guidelines, it also would require that we continuously monitor and have knowledge of all materials that are located our building, even those unrelated to PharmStar. After carefully evaluating the economics of these FDA guidelines, it made more sense to move PharmStar into its own building, where we can have complete control and move quickly, while ensuring that the highest standards of the FDA are consistently met."
The Company has received an offer to purchase the building, and is currently assessing the offer. Mr. Phykitt concluded, "I made a commitment to shareholders when we restructured the capitalization table that the Company has no need to dilute its common stock for at least the next six months. This decision will not affect that commitment."
Speaking of DD and the facility at 3791 Wesleyan Blvd North, the Company issued a PR last week I believe stating they were looking to acquire a new facility, and had an offer on the old one, however, looking through county records, it "appears" that the Company does not even own the building they are alleging that "they have received and are evaluating an offer to purchase".... Seems very strange...?
The property appears per county records to be owned by "Belmont Commerce Park LLC" which owns other properties in this area/street, and appears not to be related to Pharmstar in any way.
No records found for anything owned by Pharmstar in that county, or Howard, other than a primary residence..?
I wonder how they plan to sell a property they apparently don't own...? or put that in a PR..?
http://taxdata.nashcountync.gov/Forms/Datalets.aspx?idx=1&sIndex=0
(Copied from country records website)
PARID: 019708 TAX DISTRICT: RM00
CITYNAME: Rocky Mount TOWNSHIP: South Whitakers FIRE DISTRICT: 0
BELMONT COMMERCE PARK LLC
Parcel
PIN 386318405384
Physical Address 3791 N WESLEYAN BLVD
Unit
City BATTLEBORO
Zip Code 27809-
Neighborhood 169
Class C-Commercial
Land Use Code 59-59
Acres 15.24
Land Type A-ACREAGE
Frontage Width and Depth - -
Street1/Street2 01-Paved /-
Topo1/Topo2/Topo3 LEVEL--
Util1/Util2/Util3 1-All Public/-/-
Restrict1/Restrict2/Restrict3 -/-/-
Legal
1 of 2
Legal Description 301 2, 15.24 AC, TRACT A COMM 213 RED IRON RD AC TRACT A COMM RESOURCE
Sub Name
Lot No.
Block
Phase #
Plat Book 37
Plat Page 24
Deed Book 1917
Deed Page 63
Owner Details
Owner 1 BELMONT COMMERCE PARK LLC
Owner 2
In Care Of
Mailing Address
City/State/Zip ROCKY MOUNT/NC/27804
# of Dogs 0
Solid Waste Fee 0
Recycle Fee
I'm just saying... a coincidence... No need to get all bent out of shape..
We're all entitled to an opinion, I thought...
Agree - that would be some coincidence that one of DM's boys just happened to work for the company prior to this RM...
Another reply from the company... I'm still not sure what they are saying...
Sounds like the "FDA Approval" is more of an association for combinations of approved ingredients, rather than say "just for Aquaprin"...
I asked for the application number, they did not give it, so I assume it does not exist "directly" for Aquaprin, but the components/ingredients are approved..?? If its just acetaminophen then, I guess that is approved.. SO I don't think you'll ever find it separately on the FDA site, good bad or otherwise...
Re: Question
From:
"investors@pharmstarinc.com" <investors@pharmstarinc.com>
Add to Contacts
To: Gordon Gecko
Gordon,
In reading your questions, it seems that maybe you are not sure how the FDA approval process works. We will try to explain it for you here.
The FDA, USP and many other organizations worldwide create what is termed a "Monograph". It is a very detailed provision that goes through constant review and updating, as new products are introduced to market. Additionally, they provide for the acceptable combinations of various drugs to be used, or not to be used, in preparing pharmaceuticals. Within that monograph, any pharmaceutical company can create a new drug, as long as they follow the monograph completely. Any variance from the monograph, and it is not approved.
The monograph also tells a company how to properly label the product, and give various warnings that may be out therel concerning the ingredients of the monograph. Every analgesid on the market follows the same monograph, and remains approved by the FDA, as long as they remain on Over The Counter offering. There is no need to make an application, or registration, unless a new formulation is going to be made, or unless a prescription strength formulation is being made.
For example, search the FDA site for Tylenol. What you will find is this:
1. An approval to deliver their product using a rectal supository, back in the 70's, that ultimately did not work.
2. A reformulation of their product, using caplets and geltabs, which were new at the time of the approval.
3. 4 formulations of a prescription drug, using codeine.
What you do not find, is an approval for using Acetaminophen, nor do you find the approval for the name "Tylenol". That is because acetaminophen was already approved under the Analgesic Monograph, and Tylenol is simply a trade name. As for Aquaprin, the name "Aquaprin" is a trade name, and the combination of drugs used to make Aquaprin are already approved in the Monograph. Unless we change the formulation, or make a prescription formula, you will not find "Aquaprin" in the FDA website.
Your next question should be, "then can anyone use the combination to make this product?" The answer is NO. Because we have patented the combination, and the process for delivering the product.
We hope that makes sense.
As for the Monograph, you can find it here http://www.fda.gov/ohrms/dockets/ac/02/briefing/3882b1.htm
We will locate the entry in the Federal Register and the USP, and forward those to you as well.
Thanks. Hope this helps.
Investor Relations
----- Original Message -----
From: Gordon Gecko
To: investors@pharmstarinc.com
Sent: Monday, April 18, 2011 2:27 PM
Subject: Re: Question
Thank you for your prompt response.
So how would one find it on the FDA website?
Does the company/product have an FDA application number, the FDA website allows for that as a search box..?
The application number should clear up the confusion - thank you again.
GG
Yeah, I know, I e-mailed back with how someone would find it on the FDA website, still waiting on that response. Will advise.
I e-mailed the company in hopes of clearing this up, here's their response...
Re: Question
From:
"investors@pharmstarinc.com" <investors@pharmstarinc.com>
Add to Contacts
To: GGeck050
Gordon,
Thanks for your interest, and we welcome all questions.
Aquaprin, which has an official name of potassium acetylsalicylate, is appoved under the FDA Analgesics Monograph. It appears in the Federal Register as a "permitted combination", and appears in the USP under the "Effervescent Aspirin" Monograph. We could not use the official "FDA Approved" logo if we were not approved. We will try to put links to these on our website for easier access.
If you need more information, please don't hesitate to ask.
Investor Relations
----- Original Message -----
From: GGecko50
To: investors@pharmstarinc.com
Sent: Monday, April 18, 2011 1:50 PM
Subject: Question
Good Afternoon,
I am interested in your company, and have read many good things that you have released to the public.
There have been some questions surrounding the FDA approval of your product "Aquaprin" - Your press releases note it is FDA approved but I can't seem to find it on the FDA website of approved products? Can you please shed any light on this? Is it perhaps registered/approved under a different/former name or something.
Thank you for your time and I look forward to your response.
GG.
I'd tend to agree with that - From the warning letter issue, which is dated 1997, and addressed to Teresa Phykitt (President), it appears there was numerous manufacturing issues/violations, which stated needed to be addressed by the company per FDA letter...
Given that was 14 years ago... I'm guessing if the violations weren't addressed/corrected, the FDA would probably pull the approval, so it may not show up as a "currently" approved drug..??
The company appears to be very forthcoming with information, I'm sure they'll straighten this out..?
Perhaps its just an administrative oversight..
I can't see them doing that, especially since they're just getting some forward momentum...
So... Is this product FDA approved or not..? Doesn't appear to be any middle ground.. It is or it isn't?
If it is, it should be listed on the FDA website, and have an FDA application number.., regardless of what any press release says...?
The company alleges it is, but the FDA says otherwise..?
Correct, that would make for a LONG filing.
Former companies associated with shell should/would be listed on the Initial Disclosure, as it is mandatory per FINRA.
A reverse merger, if this is what happened, would still retain any and all former liabilities, of all former companies, unless they were settled with the plaintiffs.
If there's no money/assets, the plaintiffs don't have much recourse, however, if they break out/and acquire assets/revenues, the plaintiffs still have their legal rights/judgement to come after their court awarded judgement.. So you "could" see a whole bivy of former plaintiffs come out of the woodwork, from years ago, if this thing takes off and has real assets and revenues.. These judgements should be disclosed in the upcoming financial statements I would imagine.
What do you mean he is the "author" of the document on 4/13...? I didn't see that on your link..
Due Diligence is key - Just like you mentioned (I like your approach), just want to see the facts, primarily in financial statements, and disclosures, not just PR's.
Pro forma projections are great, however it appears that there is a lot of cash needed to build/complete a production plant, before any sales can be recognized.
$3 million or so for an initial phase one is a lot of cash. I'd look to see when that is coming, and how it will be secured, which if its done soon, we should see in the first set of financial statements, which should show the purchase transaction, all the assets of the new company, and anything else related to prospective financing (ie. how they'll pay for anything - rent/utilities, vendors, contractors, salaries of employees/exec's etc.)
Then I'd focus on sales.. Just saying, seems like a reasonable approach.. (to me..)
You do know that Tommy Johnson is a former partner of DM in Evolution Fuels/Earth Biofuels, and that as long as PATB, LLC (aka Kit Chambers) - DM's partner (another Evolution Fuels/Earth Biofuels and BMGI executive controls the Preferred A stock, which controls the majority vote, nobody listed on that officer/director list really controls the show.. Unless in the first company filing due out in May, shows something different, I'd be skeptical.. The Financial Statements and disclosures show who controls what. Always look to the preferred stock, there's a reason for it.
Agree. Talk about recycling the old and washed out.. Tommy Johnson was a DM puppet way back in the day... History appears to be coming round the corner as you say...
That makes no sense..? What is your question or point?
Exactly - New Co appears just to be another "wolf in sheep's clothing...." SOP for DM
Unfortunately other than a PR, the specific details haven't been released regarding the structure of this new company.. PR states stock was issued to PharStar, essentially giving it control over BMGI shell, and probably a RM is happening, wait and see game so far.
PATB, LLC (Kit Chambers) holds control due to Preferred A stock, unless they were cancelled in this deal (unknown until new FS are put out) - so DM isn't too far away... Have to wait and see..
The only thing DM will get running is his PR machine, then funneling cash to his pocket, standard operating procedure for him. Smart money has long figured out his deals... No bank or legitimate investing group will give him a dime. You can only burn people so many times before the trough dries up, and it appears it's a desert out there for DM.
Thanks - anytime, just calling it like I see it, I'll be happy to throw positive comments when I see them developing, hopefully soon.
Well, depends on you risk level. ANYTHING to do with DM should be avoided at all costs. Nothing he has touched has done anything positive, nothing. All his other companies are crap, nobody will lend him a dime. - yes there'll be some positive PR's talking all about this and that.. and some stock movement up possibly, so if that's your game, then play away..
I'm not convinced DM is out of the picture at all, not for a minute, plus his sidekick controls this company with his Preferred A (currently), where there is smoke, there's fire, so DM isn't far away..
This patent has been around since 1993 allegedly, patents are only good for 20 years (I believe), so it expires in couple years. They have no current production plant and no cash, plants don't get erected/completed and push out product in a matter of weeks/months... especially drug types..
IF by the time this "may" get done, the patent will expire, without a patent to protect the product, anyone can make this.. The company alleges they've had some production, and marketing in the past with no success - why now would it be a success..? Again, anything near, touching or has touched DM is a potential time bomb.. just look at his history, don't take my word, I've done my research..
Sure, day traders etc. who like to watch PR's etc. and play games, have fun.
Unfortunately, I've watched his companies and the boards for a long time where everyone is excited and RA RA until the tornado rolls in, they get wiped out, diluted or whatever, then they cry for SEC investigations etc...
History will tell the tale, I guess we'll see. When the next bunch of FS come out, we'll know more about the transaction, the assets/liabilities of the pharma company. Until then, just a bunch of PR's and bad financial statements.. Just smells like a DM story..
Same old Dog, same old tricks..
Yep! Standard operating procedure for DM... Dogs typically run in packs..
Notice who really controls the new BMGI company - Preferred A stock owned by PATB, LLC, owns 500,000,000 shares, which is Christopher "Kit" Chambers... So you know DM is never far away, he can't hold any stock as all his creditors would try to grab it, so in comes the sidekick... and let the same old story re-appear..
I wouldn't be overly surprised that the new BMGI company is nothing other than a shell game that DM is playing, when he destroys one, he changes the name, alleges some acquisition and starts up again and sticks some new 'face' as the CEO and he lingers in the shadows...
Yeah, I recall reading the "claim" of what they did.. Big Star was long defunct for months, no updates, no financial statements etc... If you really want to know, contact the old CEO, Jeff Skillen, he'd know..but, who really cares about BS..
Either way, if you leave everything in the shell, like they did, or "appears" they did, then essentially, who cares what they did, the old Big Star and previous companies liabilities, contracts, claims/lawsuits linger - I doubt DM took all his lawsuits and claims with him.. He's usually running, and don't think all the lawsuits and judgements I've read would fit under his rock...
The concern should be the new company and its assets/liabilities, you can easily read up on DM's old company lawsuits and claims.
Well, they can "claim" anything, however, reality will tell the truth - no technically they can't, a note payable is debt, they may be referred to technical long term bank debt etc... The NP is most likely short term, however since they've lingered over a year, they'd probably need re-classification to long term if there's no intent or cash to pay them back..
Correct, a reverse merger, if it was legally done that way - yet to be seen, as there are no new financial statements... You should see all of the assets and liabilities of Pharma Inc. appear next filing.
Pharma Inc. would roll into the Big Star shell, the down side is that the "shell" carries all liabilities and lawsuits from its prior existence, going back however far the shell existed, it does not wipe out any of this, and given there are judgements and lawsuits against Big Star from its seller before that, it will remain. I doubt Big Star still exists in a private co. - DM does his business in the Pink Sheet land, nobody would give him a dime privately.
The history on this shell is about 5 or more previous companies, name changes etc... Typical in pink sheet land..
Agree.
I'm curious to see the financial statements for the reverse merger, under FAS 141R, Old Co. Big Star would have acquired assets of the Pharma Co. (vice versa with Reverse Merger) I have not seen or read anything about what was acquired, given $3 million had been spent on this product, I imagine they have a good Balance Sheet if truly no debt. (will have to wait for 3/31/11 financials. These FS would also show how much invested in the production plant, if anything. Again surprised nothing was mentioned - if there is no production plant/facility.. I wonder how long it could take to construct and get a product to market - Tracking down $7 million isn't easy in this market..
I thought they would have issued some pro forma financial statements at date of acquisition to show investors what was acquired, as all the financial statements show is old Big Star financials.
Hmm.... Howard said 90 days...? Seems a bit quick... I pulled this from the Company's initial disclosure which was submitted and reviewed by Howard...
So per the filings - it appears they need $2.8 million to complete construction and 'pilot' production facilities and get up to speed, then phase 2 with another $3.6 million... That's a lot to happen in 90 days...?!
(Per Company Initial Disclosure)
Corporate Funding and Direction
Phase One
Raise $2,800.000 million dollars, which will accomplish the following:
Use of Proceeds (Phase One)
1. Complete construction of R&D laboratory and Pilot production facilities.
2. Provide laboratory and pilot production equipment.
3. Scale up to pilot production capacity.
4. Register Facility and products with the FDA
5. Validate processes & equipment.
6. Do 90 day stabilities to get 2 year dating.
7. Write “Standard Operating Procedures”.
8. Expand laboratory area to be able to develop follow on products and line extensions.
9. Establish the manufacture, marketing, and sale of AQUAPRIN in limited quantities with
phase 1 funding. Thoroughly engage its professional marketing team to get AQUAPRIN
into distribution channels and in to drugstore shelves, hospitals, nursing homes, and into the
prescription drug markets and or make licensing and distribution agreements as soon as
possible.
10. Continue to develop advanced formulations, improvements and line extensions
11. Complete development of the Insta-Prin Emergency administration technology.
12. Develop several line extension of AQUAPRIN , such as: AQUAPRIN Cough & Cold,
AQUAPRIN Cold & Flu, AQUAPRIN Menstrual Pain. AQUAPRIN Migraine Pain.
13. Conduct clinical claim trials to make specific claims for the product.
Phase Two
Raise $3,600.000 million dollars, which will accomplish the following:
Use of Proceeds (Phase Two)
· Initiate full scale clinical studies in order to meet FDA and FTC requirements to make claims
of “fastest acting, Safest, and most effective” analgesic on the market.
• Make leasehold improvements to a physical plant.
• Establish full-scale production capability with phase 2 funding.
• Continue to develop advanced formulations, improvements and line extensions.
• Thoroughly engage its professional marketing team to get AQUAPRIN into retail
distribution channels and in to drugstore shelves, hospitals, nursing homes, and into the
prescription markets and or make licensing and distribution agreements as soon as possible.
• Complete development of the Insta-Prin emergency administration technology.
• Develop several line extension of AQUAPRIN, such as: AQUAPRIN Cough & Cold,
AQUAPRIN Cold & Flu, AQUAPRIN Menstrual Pain, AQUAPRIN Migraine Pain.
• License distribution for European and Asian markets.
Finally some diligence - good job MT.
So, Kit Chambers, one of Dennis McLaughlin's people controls the voting stock.... No surprise there.
Therefore you know DM must not be far away pulling the real strings..
Also noted that the new Investor Relations contact is Tommy Johnson, who also happens to have a history with Earth Biofulels (Evolution Fuels) and DM - another coincidence...?
I see the PR machine is back in full swing....
Here's what I would be concerned about...? (if I was an investor)
1. The financial statements published and footnotes don't even match, nice cut and paste job, the footnotes talk about completely different periods..
2. A reverse stock split DOES NOT AFFECT PAR VALUE, (per their financial statements) it affects APIC, changing PAR VALUE is a completely separate process, which I see a further release states this - perhaps they caught their blatant error there..
3. Look to see who really controls this company - Look at the footnotes, on December 31, 2010 the Company (under prior ownership/control - DM) issued 100 preferred shares to "one" shareholder. Investors should be concerned "who" owns the voting control of Preferred A. Each share of preferred stock is entitled to 5,000,000 votes per share, which equals 500,000,000 votes, which currently controls the company.
Control of a company is not always evident on the surface.
Okay - Do as you please.. Maybe the fox isn't guarding the hen house anymore...
I hope I'm wrong, for the sake of investors out there.
I agree getting in on the ground floor or before things take off is good, if you can trust the leadership and the information, I suppose time will tell.
I will look for the hard information in the next few weeks like: (and everyone else should too)
1. Financial Statements - haven't produced any (even if no activity) since September 2010.
2. An actual signed agreement that details the transaction/acquisition (if you have such a great deal, you should want to show it off - nothing to hide)
3. Costs to complete facility
4. Production timeframe and time to market
5. CASH - do they have any, who will pay for completion of facility, hiring skilled people, sales
6. Fundraising - and see it ON THE BALANCE SHEET.
7. Customers - REAL ONES who pay for products
I will not be interested in MOU's, LOI's or other non substantiated statements from DM, as this is the standard operating procedure.. to generate stock interest, then nothing ever happens.
(see other DM companies, press releases and then no further action).
Just some thoughts. Again, hopefully I'm wrong, time will tell.
Funny...
Nothing bad yet..? What is good?
A statement saying, there was some sort of acquisition..? With what money did they acquire this?
You don't buy something valuable for nothing..
Why are there no financial statements?
Why is there no details on what was paid for this company?
Who signed the stock purchase agreement on behalf of Big Star/or whatever they are called now..?
What happened to Big Star Media?
How much CASH will it take to produce a product?
Is there viable WORKING facilities?
How much to complete a manufacturing line?
How much to market this product?
What does DM get out of this deal - Don't kid yourself, he'll be getting more than ANYONE, wether this thing flies or not.
You need to dig deep.. Not scratch the surface, the snakes are in the grass.
Come on - Really....?! You are buying into another DM scam! Its a wolf in sheep's clothes..
Just by naming some guy on paper and making him President and Chairman doesn't mean he pulls the strings.. the guy is an inventor.. He will never control the cash!
No information on Big Star for 6 months, no filings, no releases, then POOF, a new company being acquired... With what money, Big Star couldn't file their Financial Statements...!!
You people need to wake up - Did you think DM would just fade away... these people always come back with a new scam, looking for new suckers..
The smart play is wait til the company actually produces a product, has real sales, real customers, not press releases.
I have some swamp land in Florida for sale if you're this gullible...