BioRestorative Therapies Inc (BRTX)

[trader59]

Those shares are accompanied by 2 tradeable warrants, and the offering price won’t necessarily be 20-4000 X’s the OTC PPS, it’ll be whatever the underwriter can sell enough of those units at to get the money they’re seeking. The underwriter’s clients expect to profit handsomely and immediately and will sell their allotment at the first chance, total profit will be for all 3, shares plus 2 warrants.

With the company having gone bankrupt due to lack of funding from biotech investors, it’s going to be a tough sell to the clients and then NASDAQ investors afterwards. The last 3 I’ve watched landed on NASDAQ at a discount to the OTC price, then went down. The effect is the company gets there on the backs of those holding the stock through the process. None of them are anywhere close to the OTC PPS, splits considered.

They’ve still got a lot of work to do on the S-1, more revisions coming. This looks like Auctus getting their money back with profit after selling as much of the warrants as they could on the OTC, stock is not very liquid here. The terms of the deal with Auctus for their warrants being included in this offering will be interesting.