Generex Biotechnology Corp. (fka GNBTQ)

[WeeZuhl]

Generex & Emmaus: A Love Story

Gnbt is broke. They cant dilute enough to come up with the money needed to pay Emmaus. How is this deal going to get done.

Emmaus has PDUFA date this summer, but they are not publicly-traded, so there is no opportunity to see their enterprise value increase if the drug is approved. Solution: merge with a publicly-traded company- ASAP. Enter Generex, a publicly-traded company desperate for a quick pop in share price so that a long-planned reverse split can finally take place.



This is akin to a shotgun wedding. Young sweet Emmaus has found herself pregnant and set to deliver this summer. She really needs a ride. She's desperate to get married, and at this point she doesn't much care to whom. Here comes Generex, the ugliest, smelliest guy in town. He has no money, but he has a crappy car and lots of big plans. What the hell she figures- I gotta do something. So she makes him brush his damn teeth and get a haircut and gets him looking half decent. He says Let's get married! And she says Yes! But first give me 1.5 million dollars, and he says You got it baby. Will you take a check?




Wash. Rinse. Repeat.


From CC transcript:
https://www.generex.com/investor

Now a question. The way I read the letter of intent with Emmaus is that you’re treating GMBT as a company that has currently a market value of about 10 million US dollars, or 12 million. I’ve already once sent an email to you, which I never received a reply to. I see a significant hidden value related to GMBT, sorry related to _____ [0:54:42] and as well as related to Antigen Express, which is not reflected in the current stock price and with this, the way you’re trying to do this acquisition, you’re giving away 90 per cent of that value for free to the current owners of Emmaus. I would really like to receive a comment on that and how you would like to re-compensate the
current stock holders. I’m following this company for 10 years now and I’m actually very upset as you may hear out of my words.


Joe Moscato:
Let me just say one thing as regard to your first question. As far as the value of the platforms, we believe there is significant value in our platforms and we will come back to those platforms in a more efficient and more effective way with this team.
As far as giving away 90 per cent of our company to Emmaus, well there are significant further steps that need to be done. And those steps, obviously _____ [0:54:00] the reverse stock split. Once that reverse stock split is garnered then we will move immediately for an annual meeting of shareholders. We will ask for new authorized capital which will reduce the Emmaus holdings and that stock that Emmaus gets out of the transaction is given after the new authorized capital is approved by shareholders. So, if we authorize 500 million shares, as an example only, and the stock is $10 a share, the math would call for Emmaus owning less than 10 per cent of the company. It’s all about what the ratios will be, it’s all about how much authorized capital we get approved from shareholders after the reverse as we move into the annual meeting. Again, we’re not giving any of our stock to Emmaus until after that is accomplished. The ownership of Emmaus will significantly lessen in terms the way the cap structure is laid out today.