NanoViricides Inc. (NNVC)

[JG36]

It wouldn't matter if Dr. T's previous job had led to a blockbuster multi billion dollar approved drug. NNVC is running out of money. The very first thing a CEO has to do is raise more money. And lots of it, so NNVC can be doing clinical trials before asking for more. (And remember NNVC will probably take years to get that far.) At a minimum, NNVC should raise $20 million. At the current price that would require selling 50 million new shares. That's a 75% increase in share count. The dilution alone would send the price down to about 0.23, but allowing for the fact that there would be more optimism about the company surviving maybe the price would be 0.30. But wait -- nobody's going to buy 50 million shares at 0.40 that immediately lose 25% of their value. So the new shares must be offered at a significant discount, say 0.25. Now 80 million shares have to be offered to raise $20 million. The share count increases by 123%. Now the dilution drops the priced down to 0.18, which maybe recovers a nickel due to optimism up to 0.23. Oh, oh, Mr. Big is underwater again. See how this works? It's really going to suck raising money for this dog and existing shareholders are going to get reamed.