Let me be clear... Todos Medical was a high-risk venture even when things seemed to be going pretty good with increasing revenue at Provista Diagnostics and plans moving forward with Tollovir testing. Now that the company is officially in insolvency proceedings in Israel, the risk is considerably higher.
There are only two possible outcomes from this point, IMO.
1. The court approves the reorganization plan and the company gets another chance, and the stock continues to trade. Whether the company succeeds following reorganization is anyone's guess. But the lawsuit the company has against certain clients is approximately $5M, which is enough to resolve all issues presented to the Israeli courts by the former CEO and 3CL Pharma. But if those companies don't have the cash or the liability insurance to pay the claims if Todos wins the lawsuits, this point is moot.
2. The court does not approve the reorganization plan and the company's assets are liquidated. The stock would stop trading, and shareholders would lose their entire investment.
The stock continues to trade because some feel option 1 is possible. One can purchase 1M shares for only $200 at this point. For some this may be a low-cost lottery ticket for 1-100x return in the coming months. Others may simply be exiting their position to get whatever they can for their remaining shares. MMs may be buying large numbers of shares from those selling to resell to the speculators at 100% profit. I expect the large trading volume will continue until there is news regarding the insolvency proceedings, or the transfer agent halts trading of shares.
There may be another scenario I haven't considered. But in most liquidations, note holders and preferred stock holders are given priority over any funds generated. Common shareholders are low on the recovery totem pole and rarely get anything. I don't believe note holders would be buying the shares we see trading now. They already have a claim in liquidation. I believe it's mainly speculators and MMs generating most of the volume on the buy side from investors who are exiting their positions.
Actually, one other unlikely scenario comes to mind. According to GC's LinkedIn page, he's a managing partner at Fortitude Advisors LLC, which are merger and acquisition experts according to their website. Is it possible something is being pursued there to have Todos Medical acquired by or merged with another company? Perhaps that's what some of the speculators are considering. I am not one of those, but just pointing out a remote possibility. Gerald did say he would find a way to keep Tollovid production going for those who need it.
