VistaGen Therapeutics Inc (VTGN)

[jimmy667]

To raise money on exercise of options and to reward the executives for performance at the same time. This will forestall a dilutive financing prior to the share price being significantly higher. Also it solidifies control and voting power of the directors and executives while diluting the accredited investors voting power that bought the private placement thereby reducing the risk of hostile takeover. This is smart and a good thing for us common retail.
Further it portends that we are on the cusp of the markup phase of the stock and the rapid development stage of AV-101 which just might be a great improvement on Ketamine. Which it should be remembered is an FDA approved generic drug that is a great and safe anesthetic that is used off label for depression extensively in private self pay clinics ( insurance will mostly not pay as off label) JNJ/Janssen have patented and are clinically testing for depression the isomer (mirror chemical image) of Ketamine. Esketamine but it has all the drawbacks of Ketamine ie Safety and clinical supervision administration. AV101 is a completely different oral home administration drug with ostensibly a better safety and potential for abuse profile. Treatment resistant major depression adjuvant is just the first clinical race. Others are mono TRMD conducted and funded by NIH. Then recently announced Baylor/NIH for suicide ideation in PTSD. Katy bar the door if any of these show efficacy. The implications for other uses as out patient surgery anesthetic to first line treatment for Major Depression to pain relief to treatment for opioid abuse. Imagine Ketamine with and expanded label but a patented drug. Cancer is in the works as well. That’s why the share price spikes after every new patent approval.
Do not tell to many people until you got all the shares you want. This one drug AV101 could be worth more than the entire Market Cap of Sage Therapeutics ($7billion) That is why they want to strengthen the voting power of the Directors And executives. To stave off hostile takeovers. The next clue you will see is a anti-takeover provision to be voted on at the next Annual Shareholder meeting. Vote in favor. Those $1.50 options will have all been exercised by then. There will be some dilution but it will be market distributed to retail and Tutes and not concentrated in a Wall Street Cadre bent on hostile takeover. If that fight happens I expect a white knight to make a fair buyout offer. Likely JNJ/Janssen.