RespireRx Pharmaceuticals Inc (RSPI)

[gfp927z]

Davey, Recent company guidance is for $8-10 mil in cash remaining at year end, so there is obviously a need for additional money soon. Possible sources -

1) BP deal for CX-717/neurodegenerative rights.

2) Proceeds from excercising of warrants.

3) PIPE, or some type of secondary offering.

Hopefully there will be a significant amount of #2 right after the clinical hold is lifted (there is over $20 mil in potential warrant proceeds out there). The other possibility is that #1 might happen quickly right after the clinical hold, though more likely it may take into Q1-07 to finalize the deal. Alternatively #3, a 5 mil share PIPE at say $4-5 would yield a fast $20-25 mil, allowing Cortex to bargain with BPs from a position of strength (Cortex then having the cash available to do an in-house ADHD Phase 2b if necessary, rather than having our backs to the wall). Also, don't forget that Cortex will need even more money to acquire the in-licensed non-Ampakine program and move it through the clinic. All things considered, a PIPE in the $4-5 range or better would be a wise move all around. In the bio world, smart CEO's grab the cash when the grabbing is good.