I don't think this is complicated. Musick and Zamora (indirectly) own most of the company. I don't think investors want any part of that. The Board took control of Zamora's shares a few months ago, which I'd guess was a shot at appeasing some "you gotta be kidding" sentiment from the investment community. But they're still being asked to invest in a company where something well north of 60% percent of the shares are owned by two individuals. As I said early on, I don't think that will fly. They will need to find some way of selling a sizeable chunk of the Musick/Zamora shares into the IPO pool. In theory, they don't even need an IPO, since there are so many shares in those two individuals' coffers. Musick and Zamora would get rich instantly (deserved in one case, a travesty in the other), but that's the way these things work.
They need to sell 40 million of those M-Z shares to some investor, do a 10:1 reverse split, value them at something like $6 each, and relist the shares on an exchange -- any legitimate exchange will do. As part of this, Musick and Zamora would be required to lend half of the $24 million in proceeds back to the Company at 0% interest for a couple years, for the operating capital they need to run the clinical trials and pay everyone for a while. Problem solved.
If they want this company to (a) not dissolve and (b) not be sued into oblivion by 3,000 disgruntled shareholders, they need to get this done.yesterday.
