InvestorsHub Logo
Followers 3
Posts 197
Boards Moderated 1
Alias Born 03/01/2010

Re: None

Sunday, 12/11/2011 5:25:44 PM

Sunday, December 11, 2011 5:25:44 PM

Post# of 58465
As I read the 8-K from GNTA http://ih.advfn.com/p.php?pid=nmona&article=50311999 I am now wondering what will be the results of GNTA not being able to do the R/S Split by Dec 15, 2011. As this will put them in default with their agreement made with their creditor. Any thoughts?

On November 16, 21, and 28, 2011, and December 4, 2011, the Company entered into amendment agreements with certain investors in the September 2011 Financing to amend the terms of the G Notes to revise the timing of certain adjustment dates therein and to extend the deadline set forth in the September 2011 Purchase Agreement for the Company to effect a reverse stock split. As a result of the amendment agreement dated December 4, 2011, the reverse split must be implemented by December 15, 2011 and the second adjustment date for the conversion price under the G Notes has been moved to December 15, 2011.

On December 2, 2011, the Company received a letter from the Financial Industry Regulatory Authority (“FINRA”) notifying the Company of FINRA’s determination that the Company’s request for approval of a proposed reverse stock split was deficient and therefore would not be processed. The Company currently intends to appeal such determination. There can be no assurance that we will be successful in any such appeal and, if we are unable to appeal the decision or secure a permanent waiver of the covenant requiring a reverse stock split in Section 1.3(b) of the September 2011 Purchase Agreement, the failure to implement a reverse stock split as required would constitute an event of default under our existing indebtedness.

Additionally, on October 21, 2011, the Company issued a press release announcing that it had held a Special Meeting of Stockholders (the “Special Meeting”). At the Special Meeting, the Company’s stockholders approved a proposal that authorized the Company’s Board of Directors, in its discretion, to effect up to two reverse stock splits of the Company’s outstanding Common Stock, at exchange ratios up to 1 for-500 until December 31, 2012. The Company intends to rely upon such approval to implement one or more reverse stock splits by December 31, 2012.

Join the InvestorsHub Community

Register for free to join our community of investors and share your ideas. You will also get access to streaming quotes, interactive charts, trades, portfolio, live options flow and more tools.