VistaGen Therapeutics Inc (VTGN)

[RealWorld1]

There will be no lawsuit, and...

A) No lawyer will take on a suit against BGMO on contingency as BGMO has no assets to recover from, HH has no real personal liability, and the 8-K gives him an out as part of a due diligence process.

B) VSTA is in desperate need for cash they will not spend tens, if not hundreds, of thousands of dollars pursuing BGMO.

C) More importantly, why has VSTA gone dark. Where is an 8-K on the deal? Where is a 10-K or announcement of financial results?

D) It will be very hard to find a replacement for BGMO. Firstly, the deal with BGMO shows that VSTA is willing to sell stock at a huge discount to market - implying that they think the stock is very expensive here. Also, a lot of the money will go to pay off Platinum and money in pre-revenue transactions never likes those terms. This will be very hard to finance.