RespireRx Pharmaceuticals Inc (RSPI)

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His reply--

John, We deliberately limited the financing to $5 - $6 million so that we did not have to use too much of our stock. We had to add some funds to be sure we had enough for a full year of activity, otherwise the auditors would have given us a “going concern” opinion which would be very unfavorable. So we added just enough funds to be sure that 2007 budget would not become an issue. We obviously feel that we should be able to improve the stock valuation over the coming year. If we do need to do another financing it would be later in the year and hopefully at a far better stock price. We have a significant number of events which I outlined in the recent meetings in NYC all of which can improve our position as a company; (a) submission of new toxicology data for CX717 to the FDA sometime at the end of February/early March, (b) bringing our backup compound CX701 through toxicology and into Phase I testing this year (c) having a possible in-license drug ready for Phase II development, and (d) establishing a research collaboration with big Pharma around the high impact compounds and getting our first high impact ready for clinical development by the end of this year. The research collaboration agreement should bring some money into the company, but it would not be a huge front-end payment since it is a preclinical deal and Cortex wants to retain some rights in the high impact arena. Obviously, if the FDA removes or alters the dosage limitation for CX717 sufficiently to allow us to pursue ADHD then not only should that provide a huge boost to our company and its stock, but also re-opens the door to a very significant licensing deal for that compound. Hope this helps. Roger