Biotech Values

[DewDiligence]

>PP – "Reverse merge into a corporate shell" Can you please explain what you mean here?<

I guess you haven’t read the SEC filings. In 2006, the original Pipex, which was private, merged into a company that had a public listing but no business operations. The shell company was then renamed Pipex Pharmaceuticals.

Now let me ask you a question: Why do you think Pipex wanted a public listing? Kanzer claims that the company will be “highly profitable” in 2008, so the rationale for going public via a reverse merger was presumably not to facilitate the raising of capital.

If Pipex had cutting-edge science with outstanding prospects and no need for a capital infusion, as Kanzer asserts, why didn’t the company’s owners prefer to stay private and reap 100% of the benefits for themselves?