I love these historical Radient PR's. They are wonderful examples of why you should never trust PR's from developmental biotech CEO's. Thanks for posting it!
Let’s look closer at this AMDL/Radient PR and determine whether this PR passes the sniff test.
“…given its most recent news announcing the monetization strategy for the Company's China-based subsidiary Jade Pharmaceuticals Inc.;” At the time this PR was released, Radient knew that Jade was not cooperating. The “monetization plan” was a dream.
“…focused on the commercialization of AMDL's proprietary Onko-Sure(TM) In Vitro Diagnostic (IVD) cancer test;” Because they had nothing else to sell. And even when the company “focused”
on selling DR70, they failed. Gross revenues were only about 10% of operating costs from the time this PR was released until the end of 2011 when the company announced they couldn’t pay their operational bills.
“In addition to today's rebranding announcement, AMDL completed a note and warrant purchase agreement with St. George Investments, LLC in the amount of approximately $555,555 and a bridge loan with Cantone Asset Management in the amount of $58,000.” This is the one piece of meat in this air sandwich. This was the start of the toxic financing. Instead of selling shares in a private placement, MacLellan borrowed money.
“Radient Pharmaceutical is aggressively collaborating with its China-based management team to determine the highest valuation path and plan for the de-consolidation of Jade Pharmaceuticals Inc. (JPI).” How do you “Agressively collaborate?” Wasn’t this agression the very thing that caused Jade to mutiny in the first place?
“MacLellan continued, "Along with our corporate name change, we have restructured our business and are re-classifying Jade Pharmaceuticals as a business asset rather than a core operating arm of the Company.” Unfortunately, the SEC disagreed with this “re-classification.” It took the SEC two years but they eventually delisted RPC because the $20 million Radient claimed this “business asset” was worth turned out to be $0.
“By late 2011 the Company anticipates launching a next generation version of Onko-Sure(TM) ….. The Company anticipates market launch and commercialization of the introductory Elleuxe(TM) product line targeted to women in the luxury market in late Q1FY10 to early Q2FY10.” “Anticipates” is a red-flag Safe Harbor word in biotech. Everything they “anticipated” and “expected” in this PR never happened.
Conclusion: the sniff test score? "It stinks."
