Biotech Values

[mouton29]

": 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."

Not so. The company raised $13.5 million in private placements just before and after the reverse merger. Do you think it might be possible that the investors in the private placement insisted on receiving stock in a public company? The whole thing is just a low rent way to go public, in effect they paid 2% or so to the shareholders of the public shell.

"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?"

I don't think he made any such statement before the private placements, did he? Kanzer basically funded and started the company. He is the real insider and so far as I can tell, he has not sold any of his stock.