I just feel compelled at this time to give you my honest opinion from once a long-term shareholder and now a person without a position in this new company.
I feel over the last four years or so, I have learned plenty about this company, past GTEC and new GTEC Pharma, and feel lucky that I have, overall, made a profit in this endeavor.
However, as this learning curve has grown, I have become more and more skeptical about this current situation. I am not saying this because I have any intention of buying shares in the future. I just want a few of you on this board who I enjoyed conversing with to read what I have to say now.
I feel this last financing deal reeks immensely. From more than one front:
First, it appears that it has doomed the stock to a lower trading range, probably 0.20 to optimistically 0.25, in the foreseeable future. I really think a lot of the accumulation now at 0.20 are not long-termers, but most are those looking to make a quick 20% to 0.24 or so on any good news release.
Secondly, are the terms of the deal. Financing at 0.20 a share.
Going back to the beginning of the merger, the deal was G. Pharma goes to OTC market. Wubo & Co.75%, U.S. 25 % with just under 400M O/S. Now Wubo & Co. got their 299+M(300 for short) and U.S. even now probably only are accounting for the 93 M. Some options, probably at well over 0.30 were not exercised. So this is most likely the end of that at 393M. There will be expected rises as BOD and employees get their yearly bonuses.
Now the financing starts:
Nov., 2007
$5M for 20M shares at 0.25
Options for $3.2M for 10M shares at 0.32
May 2008
$30M for 150M shares at 0.20 (using current O/S shares)
Options for $18.75M for 75M shares at 0.25
IMO, the 20M shares from Nov. are now part of the O/S for a total of 413M shares. This just seems logical with the exact 20M rise. So that $5M won’t have to be paid back.
Another 85M shares could be added to the O/S if Pope would ever choose to exercise them.
The biggest thing I am skeptical about is the 150M shares at 0.20. Who here really thinks that GTEC is going to pay back the $30M dollars? IMO, I already consider these shares the property of POPE and the $30M the property of Wubo & Co. Technically, on paper, the money went to secure a new, great drug and improve facilities. The only thing I am sure of is this money went to Wubo, and we have to 100% trust that this money is being spent like we are told. I’m not buyin it.
And now, conveniently, the A/S have been raised to 900M. This is so Wubo & Co. can continue to control via share count. He still controls the BOD. So, when the share count more than doubles, you have to ask, will the revenues and profits more than double as well? Sounds great, but that is only a break even.
I’m not saying here that a shareholder can’t get lucky and make money here. News manipulations can make share price rise. I just think the only ones truly gaining here are Wubo & Co. and Pope & Co. and other influential insiders.
I just think this deal reeks, and be wary.
And just a comment on Elsa's representing the company via PR: She's might be a good beancounter, but please, GTEC, replace her for PR speaking engagements.
AI
