Ayala Pharmaceuticals Inc (ADXS)

[Meishairwin]

Traderbx, you say, "Why does Dan do this.. ADXS has sufficient cash on hand for 2 years... there is no reason to dilute..,

Dan needs to focus on a big buy out"

First, there is every reason to dilute. You need to understand the capital requirements of a company like ADXS. It needs as much capital as it would take for it to bring its AXAL product through what will probably be two Ph3 trials and to advance the Lm platform significantly (i.e., many more clinical trials of other targeted Lm therapies). And that amount of capital is WAAAAYYY more capital than it has now.

Why do I say this? Because ADXS will NOT be bought out until that is achieved -- or until it is obvious ADXS can achieve that on their own. Why won't they be bought out any time soon? Because the Lm platform is not "mainstream" immunotherapy and there is too much unknown about it for Big Pharma to risk its money until there is MUCH MORE evidence it works and has no serious downsides.

Pre-revenue start-ups like ADXS must raise capital WHENEVER THEY CAN at advantageous prices (higher than the pps is now and higher than it will be at various later points in time, probably). Why? Because if ADXS ever looks "needy," professional investors will extract a pound of flesh for that new capital -- i.e., you'll get MUCH greater dilution.

So, I don't think Dan is (nor should he be) trying to sell ADXS. It's way too soon -- and least 12-18 months too soon. ADXS needs at least another $100M-$200M to show it can take AXAL to FDA approval on its own, if needed, and that its Lm platform has a lot of breadth through multiple additional Ph1/ Ph2 clinical trials.

If you're invested in ADXS now, I think you should be ready to be diluted another 25%-40% before you can cash your investment out at $100-$150/sh in 2-3 years.