Genta, Inc (fka GNTAQ)

[kun]

The reason for today’s drop___a message from discussion board at Google

According to SEC filing - section (c) under conversion of outstanding
notes; each holder agreed not to sell or transfer any common shares
until 11:59ET April 26th
Thus today, the 27th , was the first opportunity for note holders to
sell if desired. One should remember, note holders only converted to
common shares they are not required to sell. Many will hold and reap
the benefits of this coming year.

“Conversion drop days” such as today generally works out to 2/3
conversion sellers and 1/3 panic sell. Considering it only dropped a
0.017 I am very impressed and even more optimistic of this stock.

If anyone is wondering today is a great day to buy or average down.
The damage has been done.

More dates to know:

On June 15, 2010 will be the annual share holders meeting. Investors
holding as of April 26th will have the opportunity to vote to effect
a reverse stock split. If approved the Board of directors would have
the authority to effect a RS anytime before the 2011 meeting. Thus
any reverse split does not have to happen ASAP; the board has the
flexibility to set the date and ratio according to market conditions
in the best interest of the shareholders.

Reverse splits are usually considered an ugly thing because companies
doing them are generally in trouble, the stock has tumbled and they
have received notice of non compliance and will be booted off the
exchange. This is not the case for GETA. GETA wants this reverse
split for the garden variety cosmetic reasons. Improve perception,
appeal to broader range of investors and keep investor transaction
costs down.
More importantly this Reverse split will keep shares numbers within
the authorized limits come note conversion time. Trust me you would
much rather see note holders paid out with stock instead of cash.
Here’s the part I don’t like, GETA also states that a reverse split
would leave required shares available for future issuance. Dilution is
such an ugly word but the company would not do this needlessly and as
of March they have 25 mil for operating costs and a potential FDA
approval in less than a year. So it may never be necessary.

Once again it is a VOTE

Cut and paste to this link below. This is one of my favourite
articles regarding reverse splits. Read it all the way through
because when you get to the end about the 25% companies that sky
rocket after a reverse split I believe GETA might apply because the
reasons for the RS is cosmetic, for authorized share limits and 2010
prospects have definitely improved.

http://moneycentral.msn.com/content/P32972.asp

About Fast track designation (most of this purloined from wikipedia
but it had the best explanation.) Tesetaxel has left an impression on
the FDA as it must show all of the below to even be considered
• Showing superior effectiveness
• Avoiding serious side effects of an available treatment
• Improving the diagnosis of a serious disease where early diagnosis
results in an improved outcome

A drug that receives Fast Track designation is eligible for some or
all of the following:
• More frequent meetings with FDA to discuss the drug’s development
plan and ensure collection of appropriate data needed to support drug
approval
• More frequent written correspondence from FDA about such things as
the design of the proposed clinical trials
• Eligibility for FDA Accelerated Approval,

In addition, most drugs that are eligible for Fast Track designation
are likely to be considered appropriate to receive a Priority Review.
Fast Track designation must be requested by the drug company. The
request can be initiated at any time during the drug development
process. FDA will review the request and make a decision within sixty
days based on whether the drug fills an unmet medical need in a
serious disease.

In short the reson why almost every fast track drug wins FDA approval
is:
1) It is a very promising drug to begin with. Safety being #1
2) because they have the luxury of more communication with the FDA.
Insuring the New Drug Application has all of the t’s are crossed and
I’s are dotted before the approval date.
GETA may apply for priority review when ever it feels it has met the
FDA requirements.

Don’t get too freaked about about today’s price. Today was written in
the SEC filings. The only thing anyone should be is bullish about
this stock an FDA approval for a cancer drug possibly within the year
is a winner.

Disclosure: I am in 700k, It is my intention to play this one right up
until approva.l If you want some fun read back all the discussions
from the past three weeks ..the mania and depression. This stocks’
price causes light switch bi polar effects on investors please don’t
get sucked in The facts and future have not changed.
GLTA