RespireRx Pharmaceuticals Inc (RSPI)

[neuroinv]

I'm puzzled too. The number of shares is so idiosyncratic that I'd wonder if this is a purely internal Samyang machination--some realignment of the percentage of their fund allocated to biotech, CNS, companies in SoCal, I don't know.

What I don't think it is would be the 'warning shot' scenario--if they wanted to do that, they could pick a round number--and secondly, this is based on the presumption that Cortex management is trying to drag out the process however fruitlessly, and that they have to be forced into finding a resolution. It's not so, and just because somebody built a house with paranoid framing doesn't mean everybody else has to move in.

The time is running down, I think Cortex is simultaneously looking at both outright sales and licensing, and will take the best deal that ends up available. Financing is a bridge to either of those, should more time be needed. And keep in mind that without at least the appearance of being able to raise money, offers tend to be reduced as the cash balance approaches empty.

Finally: this fantasy of the 'forced sale.' As if there is some orderly auction process, a Biotech CarMax, where reasonable value can be produced. That does not exist. Closing down and dispersing assets does not obtain value. If you doubt this, look at Dov Pharma, which at one time had a market cap over $300 million (if I recall correctly). The assets were finally sold for $2 million to Euthymic Bioscience. Epix Pharma suffered the same fate. Now, I believe that Cortex's assets have more value than either of those two companies, and that it will not come to that. But be careful of what you wish for.

NeuroInvestment