NanoViricides Inc. (NNVC)

[seeker_of_value]

I will give you my perspective:

In the Seaside deal, NNVC essentially gives Seaside a 15% price advantage relative to the recent trading prices of the stock. That actually is a great deal. In most cases struggling companies not only have to give lower prices to be able to sell a large quantity of share they also have to issue warrants enabling the buyer to buy almost the same quantity of stock within a few years. 15% discount is ok.

Another company may have sold shares at say 1.00 and issued warrants for eaqual number of shares to be bought at say 1.25 within say 4 years. For us the later deal would be worse since let us say in 4 years NNVC shares are at $5, but the warrant holder will be able to buy shares at $1.25. That is extra dilution.

The problem is the ability of small companies to raise large amount of cash so they can continue their operations. I think in this case the thrifty attitude of NNVC management got them a great deal.

However, I always hate the commission given to another company which acts as the intermediary. I think companies use them for legal purposes. However, it is just a waste of money.