VG Life Sciences Inc. (VGLS)

[palmspringsbum]

You left out this part:

The standard efficacy rate for HIV/AIDS drugs is 99.9% viral reduction loads in 70-95% of the patients.

http://www.viralgenetics.com/investors/press-releases/Research_2.0_Report_Feb1_2011.pdf#page=2

What I've been trying to figure out is what exactly does "out-of-the-money call" mean?

Although it has great potential, we are leaving VG Energy out of our IV methodology and treating it as a free out-of-the-money call option.

http://www.viralgenetics.com/investors/press-releases/Research_2.0_Report_Feb1_2011.pdf#page=12

Wikipedia had what seemed the most appropriate definition...

A call option is out-of-the-money when the strike price is above the spot price of the underlying security.

http://en.wikipedia.org/wiki/Moneyness#OTM:_Out-of-the-money

Well, in this case the "underlying security" is VRAL, so it seems that means the intrinsic value of VG Energy is greater than that of VRAL, i.e. greater than $0.47?

I suppose this means that VRAL isn't going to have to look very far to find funding for their clinical trials and research.

And it also means that the worst case value for VRAL is greater than $.03?