Biostax Corp (BTAX)

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Problems with TNIB's "China Deal."

The big hanging chad to this PR is "what does TNIB get from the deal?"

Lets take a look at the few specifics from the PR:

TNI BioTech, Inc. will maintain oversight responsibility for pre-clinical and clinical trials in China complying with both FDA and SFDA standards.

Hubei Qianjiang Pharmaceutical Co., Ltd. has committed a minimum of 10 million yuan, approximately $1,600,000 dollars, for pre-clinical work.

Once the companies complete pre-clinical studies, TNI BioTech, Inc. will apply for clinical trials with SFDA. Hubei Qianjiang Pharmaceutical Co., Ltd.will provide the funding for clinical trials in China to have Methionine Enkephalin approved as a new drug for the treatment of cancer.

No mention of any specifics of a business partnership. Do they split profits? 50/50? 90/10? Or do they pay TNIB for their services? For the use of any patents? Would any payments cover payments and expenses to Herberman and Shan? Is there any chance this deal could have any value to shareholders?

Surely more detail would be included in the public filings. So, lets look:
http://www.otcmarkets.com/financialReportViewer?symbol=TNIB&id=93248

It is agreed by the Parties that there shall be no disclosure of any information concerning any provision of the agreement.

Why so secretive? What are they hiding? It's not like the terms of their financial arrangement would be any kind of trade secret.

Now lets look at some other red flags in that PR:

Methionine Enkephalin's potential in fighting cancer was identified in completed Phase I and early phase II trials in the United States. During Phase I and Phase II trials, Methionine Enkephalin exhibited encouraging antitumor efficacy and a favorable toxicity profile.

Hubei Qianjiang Pharmaceutical Co., Ltd. has committed a minimum of 10 million yuan, approximately $1,600,000 dollars, for pre-clinical work. The pre-clinical trials, designed to assess safety, tolerability and antitumor activity of Methionine Enkephalin, are required in China as Methionine Enkephalin is a new drug.

So they tout successful Phase I and II trials in the US (not conducted by TNIB), yet go on to say they need to do pre-clinical work in China. How is that consistent? If there is already credible data that it works, why start all over? Either those trials they tout have nothing to do with TNIB or its proposed applications, or the data is bad. They can't be valid studies and require a complete restart.

And lets go to the last little gem:

Confessed Congressman briber and TNIB CEO Noreen Griffin says:

This agreement illustrates TNI BioTech's ability to draw upon its patents to build alliances that help biopharmaceutical companies navigate the approval process of new therapies and further illustrates our strategy to maximize the potential of biopharmaceutical development and innovation for the benefit of patients and our shareholders

Such powerful patents. And what did TNIB pay for them? $19,750. Legitimate patents in Biotech sell for million. TNIB's were available for less than $20k.

http://www.otcmarkets.com/financialReportViewer?symbol=TNIB&id=89112

Acquisition of TNI Bio Tech IP $19,750

That fits right in with their $369 of cash to fund their trials.

(The Bihari Patents are also listed for $900k, which was paid in stock, but these are related to LDN, not the Methionine Enkephalin covered in the China PR)

The real question here is which parts of the PR is smoke and which is mirrors.