Intellect Neurosciences Inc. (fka ILNS)

[montanus]

From Yahoo Board

massive upside potential??
To any real longs here (who don't bother to post):

observations:

• ILNS science/IP/patent portfolio is basically sound/solid

• The company is a one-man-band, but so what.

• Company was completely refinanced a few years ago, so the company has no actual debt
- it was all converted to stock
- debt in the balance sheet is only for accounting purposes and to help reduced taxation on future earnings

• $6.5M received from ViroPharma October 2011 (all spent/burned as of latest 10Q)

• company is financed (day-to-day) by purpertual sales of Promisary Notes at 14% interest, carrying "full ratchet protection" (ie. payment of principal+interest in shares at 1 penny each)+millions of warrants at 1/10th penny each

shares outstanding (as of today): 108M

according to my calculations, conversion of all the Notes currently outstanding (principal+interest) converted at 1 penny each, plus all the Warrants = 550M dilution to come.

According to recent 10K, fully diluted shares = 808M
So, there must be some I have missed (not counted).

Longs (historically) have been totally screwed over (that's for sure) by the terms of this totally weird/twisted (and barely legal??) financing.

However, for new-comers/"extreme investors" who might wish to enter this stock now (at 1 penny) I am alone at recognizing a potential thousand-bagger here??

ILNS has solid IP, and Pfizer and J&J are duty bound to pay up. Failure to do is only indicative of such enormous value. By failing to pay, big pharma hopes to drive ILNS bankrupt. So the issues is whether or not big pharma is successful in buying-off the folks at EPO and USPTO. If the bribes fail, intellect is worth (overnight) a billion dollars, even with close to a billions shares outstanding.

Plus, I question the legal status of the "full ratchet" protection...

Are they any serious investors here with any valid inputs (I doubt it, but it's worth asking)..


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