Cobalis Corp. (fka CLSC)

[laker5]

On Toxic financing--not every counterpart in a financing which has a provision tied to the stock price will engage in unethically shorting the stock to reap more shares.

Cornell, if it does engage in such, would gain a reputation for such and would no longer find counterparts willing to do business with them.

Having said that, many companies will have a counterparty sign a statement pledging that they will not engage in any activity such as shortselling. Did Cobalis have Cornell sign that statement? I don't know the answer.

In any event, to engage in this type of financing does show some naiivety on the part of CLSC's financial advisors. Unless they know the trial is good and the whole issue is thus moot.