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Yup, I agree, the company is being as open and transparent as any company.
I guess the company is NOT hiding something since they have not deleted the Q&A from the recording. I'm listening to it right now. I guess the transcript hasn't been updated by the firm they use to transcribe the audio. Doesn't sound 'suspicious' to me. I guess investors should take time to listen to the Q&A.
Anyone that wants to 'hear' the Q&A can just listen to the conf call replay. Don't believe it's been deleted from the replay. I would imagine the firms that does the transcript is still compiling the Q&A parts. But just go listen instead of accusing the company of something 'suspicious'.
Here is the link to listen.
https://storage.googleapis.com/wzukusers/user-26831283/documents/5c7815ba7203czR65Bkf/Investor_Call_02_26_19.mp3
And Q&A starts at 40:20 mark. Please go listen to Q&A.
And my questions start at 56:10 mark.
Not sure why anyone is looking for the dividend in their accounts. During the last conf call (please go listen to it), it was stated they will need to evaluate, purchase a shell company to reverse the NGIO shares into and then publically list them. Initially, your shares will be a book entry on GNBT books that you are entitled to a certain number of shares for when it goes public. They may do it as some kind of note, that may show up in brokerage accounts, but that is most likely more expensive to have to change them out later.
I would join the conf call tomorrow at 11AM and I'm sure we will get the details on the NGIO dividend shares.
I do my own due diligence. I was looking to see where you might have seen they are selling. Just because they list to be able to sell, does not mean they are selling. You posted they would be so I was just looking for your link so I could see what you are seeing.
Please provide a link that they plan to dump those shares.
However there was a 35 day US government shutdown that inhibited IPOs. Also Alpha causes a delay with FINRA questions during the initial dividend back in November. That can be pointed back at them.
I'm not trying to be mean here, but isn't that the point of an ex div date? And that question has been answered here many times if you were to review the posts. However, Yes, if you sell now, you will be entitled to the NGIO dividend on 2/25/19.
Sorry but that did not answer the question. You are suggesting that GNBT will be shorted down to pennies so this $2M will be a death spiral and this is a HUGE assumption. I'll take it that you don't really want to say the 1.2M shares with 60M shares out is not 'massive dilution', so you will keep pointing to your definition.
Unfortunately, I don't know. It will be worth what the market thinks as they see revenue come in. We will need to see a few quarters of increasing revenue to get a better feel.
Unfortunately that does not answer my question. That is a general description of your death spinal theory. My question is do you feel 2% stock is 'massive' dilution?
namtae, I agree that I don't like this financing either. However I did want to ask for clarification on one part of your statement regarding "massive dilution". Let's say they convert now because they believe the stock will go up, and they get to convert at 70% of the average 10 day price. Let's say that is $2.40/share, so 70% of that is $1.68. Now they get $2M divided by $1.68 is 1,190,476 shares of GNBT. With 60M shares outstanding, that is only 2% dilution.
So I guess, how is this massive dilution on $2M? Are you just assuming they will do more and that is the basis for 'massive dilution'?
Thank you for you answer.
ed, you're investing in GNBT, so you should look back at the dividend on 11/30/18. At the beginning of Oct 2018, GNBT was $2/share. The with the dividend announcement and other deals, they ran to $25 before settling at $18.99 on 11/30/18. The 20 share dividend was paid on 12/3/18 and so the share price was adjusted down to $0.904/share ($18.99/21). Now was are at $2.38/share, so almost a 200% gain since 12/3/18. What I think the other person was reflecting was that pre dividend, GNBT was over $10 and he thought it would not have held that. Now we are at the equivalend of $49.98 pre dividend adjusted.
While that is great insight you are giving to us, you did also post this back on 12/6/18
"Will be below .30 sometime in the next few weeks and then they will do another R/S....:) "
Please provide some back up to your posts.
YES. That is the point of the ex div date. So you can sell your GNBT stock now, if you choose to, and will still get the NGIO dividend provided you purchased the stock before the close on Friday 1/25/19. Of course, there may be good news coming between now and 2/25/19 and also they announced a new investor conf call for 2/26/19 at 11AM EST. You might want to wait until then to see all they have planned.
First off, it was a dividend of shares of stock and not a forward split. A forward split, requires a new CUSIP number and a 'D' to be added to GNBT for 30 days. That did not happen, even though some brokerage firms are confused and show this as a forward split.
Second, if you owned 1% of the company before the dividend, you still had 1% after the dividend. However we all kept our shares. Joe Moscato and team, donated their shares from the dividend back to the company to be used to fund their plans. Essentially, Moscato and team, went down in their % ownership in GNBT.
Third, those 34M shares are being used at a price of $2.50/share (or more) to purchase acquisitions. So if they buy a company for $1M, they issue them 400K shares of GNBT stock. That 34M shares is ALREADY in the outstanding 60M shares. 26M shares are held by investors and 34M held by GNBT. Therefore as they use those shares, there is NO INCREASE to the outstanding quantity so NO DILUTION to existing shareholders.
Very true.
I can answer this too...
I believe Marvy asked about NuGenerex which is GNBT. Now the new spin off called NuGenerex Immuno-Oncology, no we do not know what the symbol will be yet.
NuGenerex ticker is GNBT
I agree, there is so much info available on NuGenerex that you would think they can not possibly camouflage anything. My guess is 99% of the true shareholders, and not day traders, know what is happening at NuGenerex and the bright future it has over the very near horizon now.
Yes, you are correct it was a release, however it came out on 1/16 and that was after the date you would have had to own to be entitled to the dividend. Therefore I think they had to change the date to give everyone the opportunity.
You are right Ann. Since this one is not a greater than 25% dividend, they are going to follow normal dividend rules. I’m glad they clarified it though for everyone.
The ex div date on ‘stock’ dividends is the day after the payable date, so 2/25/19.
New Tom Barnard article.
https://www.linkedin.com/pulse/agenda-generex-tom-barnard/
Let’s think about this...
You buy a ‘private’ company with $78M sales and a net of about $16M. Normally private companies take all the value out for the owners due to taxes. Now that company is owned by a ‘public’ company and all those paid out earnings now retained in the public company. Also that ‘public’ company has years and years of losses to use to eliminate those earnings for years to come. Thank makes this asset now worth much more than it was before and allows for expansion now into 24 more states to grow sales exponentially.
Sounds like a great business plan.
No way to know the dollar amount of the spin off yet. GNBT shareholders of the 26M shares that are in public hands, will get 1 NI-O share for every 4 GNBT shares you have, without changing the ant of GNBT shares you hold. So that means only 6.5M shares will go out to GNBT shares that are in public hands. According to conf call with CEO, that is supposed to be only 10% of the new NI-O so that would mean it will have about 65M shares. If they value NI-O at $325M, then that would be $5 per share but that is only a guess.
No Orlando. After lots of research and seeing what happened with the 12/3/18 stock dividend, you can not sell the stock until the day after the payable date of 2/25/19, so you can not sell until 2/26/19 or after if you want your shares.
“Sometimes a company pays a dividend in the form of stock rather than cash. The stock dividend may be additional shares in the company or in a subsidiary being spun off. The procedures for stock dividends may be different from cash dividends. The ex-dividend date is set the first business day after the stock dividend is paid (and is also after the record date).
If you sell your stock before the ex-dividend date, you also are selling away your right to the stock dividend. Your sale includes an obligation to deliver any shares acquired as a result of the dividend to the buyer of your shares, since the seller will receive an I.O.U. or "due bill" from his or her broker for the additional shares. Thus, it is important to remember that the day you can sell your shares without being obligated to deliver the additional shares is not the first business day after the record date, but usually is the first business day after the stock dividend is paid.”
FINRA rules for large stock dividends. So the rule is the ex dividend date is the day after the payable date. So the payable date is 2/25/19 so the ex div date is 2/26/19. Therefore you need to own the shares on the ex doc date of 2/26/19 and then you can sell and still receive the stock dividend.
Deals get restructured all the time in business. Good for GNBT for having the bargaining chips to be able to restructure, and that Veneto accepted that restructure.
Guess what? They did. They used donated/pooled GNBT stock, which the last time I checked counts at "equity".
From the 11/5/18 8K
"Item 1.01 Entry into a Material Definitive Agreement.
Item 2.01 Completion of Acquisition or Disposition of Assets.
A subsidiary of Generex Biotechnology Corporation (“ Generex ”) has completed the acquisition of certain operating assets of Veneto Holdings, L.L.C. and its affiliates (“ Veneto ”) contemplated by the Asset Purchase Agreement described in our Current Reports on Form 8-K dated October 3, 2018 and October 9, 2018.
As previously reported, on October 3, 2018, NuGenerex Distribution Solutions, LLC, a wholly-owned subsidiary of Generex entered into an Asset Purchase Agreement (the “ Agreement ”) with Veneto. The Agreement was subsequently assigned to another wholly owned subsidiary, NuGenerex Distribution Solutions 2, LLC (“NuGenerex”). The Agreement provided for NuGenerex to purchase certain assets of Veneto and its subsidiaries (the “ Assets ”) at two separate closings. The first closing took place on October 3, 2018 (the “ First Closing Date ”). ON the First Closing Date, NuGenerex purchased the operating assets of (a) seven dispensing pharmacies, (b) a wholesale pharmacy purchasing company, and (c) an in-network laboratory (the “ First Closing Assets ”). In consideration of the sale, transfer, and assignment of the First Closing Assets on the First Closing Date, NuGenerex executed and delivered to Veneto a secured promissory note in the principal amount of $15,000,000 (the “ First Closing Note ”) guaranteed by Generex and Generex’s Chief Executive Officer, Joseph Moscato.
On November 1, 2018 (the “ Second Closing Date ”), NuGenerex consummated the acquisition of the balance of the Assets contemplated by the Agreement, consisting primarily of Veneto’s management services organization (MSO) business and two additional ancillary service companies (the “ Second Closing Assets ”) (the “ Second Closing ”). The aggregate price for the First Closing Assets and the Second Closing Assets was $30,000,000. ,NuGenerex issued its promissory note in the principal amount of $35,000,000 (the “ New Note ”) consisting of the $30,000,000 purchase price and a $5,000,000 original issue discount, as the sole consideration payable on the Second Closing Date. In addition, NuGenerex has assumed approximately $3.8 million in outstanding institutional debt of Veneto subsidiaries; NuGenerex will have use of the Veneto cash which would otherwise have been applied to paying down the debt. The parties entered into an amendment to Asset Purchase Agreement (the “ Amendment ”) reflecting these changes and the application of the New Note proceeds described below. The New Note retires and replaces the First Closing Note.
Generex expects to raise funds through a combination of debt and equity to fund the required payment of the New Note. As of the date of this report, Generex is in discussions with several potential funding sources, but has no definitive arrangements for such funding. "
Usually businesses include the sales that go with them. Also, in several conference calls and online interviews, it is stated that Veneto revenues in only 3 states is $78M/year. That will expand to 27 states, already in process of another 5 states.
That's right doc. The management of this company believes so much that they donated their 34M shares of stock dividend on 12/3/18 back to the company to be used to execute their plan. So, is it cash, no it is not. However the purchased companies are accepting shares at $2.50 value to be purchased and they have to hold them for a certain time frame. Whether you use cash or stock, these revenue producing companies are now part of GNBT and that revenue flows up the line and ultimately in OUR STOCK PRICE.
We are partnering with drug developers to out-license the Rapid-Mist® for formulation of new drugs and supplements, with a focus on generating both near and long-term revenues through licensing fees and royalties on future product sales. To this end, Generex has entered into licensing and co-development agreements with Scientus Pharma to use the Rapid-Mist® Drug Delivery System with their medical cannabinoids and cannabinoid-derived drug products. Scientus has studied individual cannabinoids and their mixes and ratios to profile the absorption and effects on different body systems including the endocannabinoid system, and have evaluated the medicinal potential of cannabis and cannabinoids in a number of therapeutic areas; they have the regulatory approvals to permit the study of CBD and THC formulations, and are approaching the commercialization stage for new and safe cannabinoid drugs. Scientus holds an exclusive, worldwide license to commercialize such products in exchange for royalty payments. Generex and Scientus will co-own the intellectual property created by the co-development effort. This is another huge opportunity for Generex and a significant advancement of the licensing strategy for the Rapid-Mist® technology.
Another venture in the CBD space is our recently announced agreement with Puration, Inc. (USOTC: PURA) to develop and produce NuGenerex CBD HydroHealth High Alkaline Water for distribution through our pharmacy network, with an eye towards product-line expansion.
I agree, the drop of $.70 on 40,000 shares of stock when we’re trading 600,000 to 700,000 shares a day for the last couple days, was just someone getting out thinking they are entitled to the dividend shares coming up on February 25. When they realize they have to buy back in, they’ll have to buy back at a higher price hopefully.
No. There is a price objective of $285 out there and it is the old $6 objective pre reverse and post dividend adjusted.
It’s the old $6 before the reverse and after the 20 share dividend.
I’ve posted this on another board in the past. If we get to $1B sales and we trade at 3 times sales, then the market cap would be $3B. Joe Moscato has stated he wants to try to cap at 75M shares so that would get a share price of $40. This is realistic over the next 1-2 years with the expansion of Veneto into 27 states.
I have not seen that but that would be an AWESOME PRICE! That may be the one and only price target they had for years that was $6 before the reverse split in early 2017 and then after the 20 dividend shares. I just figured it out that is the $6 price target. $6 times 1000 divided by 21 equals $285.71