Synvista Therapeutics Inc (SYNI)

[Lochan]

Hey, 1CK -- I agree. The financials don't look good, and that's
why this SH's meeting on July 20 is so important. There will be a vote to accept a financing plan that will provide the company with $25M, enough to keep them going for another year
of R&D. During that time, a buyer from among the big pharmaceutical companies may come forward like a knight in shining armor to save the day.

The Company's Dec. 31, 2006 financial report carried a going concern warning, never a good sign, especially with the deficit
now at $246M. They had interest expense of $2M for the year, just to service their existing debt. Alteon now needs shareholder approval to issue preferred shares to receive the financing, must give up a couple of seats on its board of directors, and, as part of the new financing agreement, must arrange a 1:50 or 1:100 reverse split to keep from being delisted from the AMEX. They will also change the name of the Company to Sylvestre Therapeutics (or something like that).

If, on July 20, the shareholders approve, and I believe they will, the Company will be breathing a lot easier for another year. If they can complete the current phase of clinical testing, Alteon will become an interesting buyout target. It looks like their plan to avoid liquidation might just work.