VistaGen Therapeutics Inc (VTGN)

[RealWorld1]

Platinum Holds All the Cards

So lets think this through...

Platinum provided the most recent round of cash and have claims on the company's property; as per SEC filings. They have just agreed to restructure their deal based on VSTA raising a huge amount of cash; as in enough to give them several years of running room at current burn rates.

By all appearances BGMO didn't perform, otherwise VSTA would have filed an 8-K by now.

So, what must Platinum be thinking? The deal with BGMO didn't go through and I bet they are looking into why and will quickly see that BGMO is a scam without cash and I am willing to bet this has caused a difficult conversation with management.

In order for a new deal, which will not be easy to find, Platinum effectively has to agree. It is in Platinum's interests to improve their position in all this. So any deal has to at least match what "BGMO put on the table". In the event of failure Platinum is the creditors committee. They may say let VSTA go through bankruptcy then we reorganize things and own the whole company.

That is the benchmark that VSTA has to satisfy. Multi party agreements are much more difficult and complex to complete. Therefore they hold all the cards and will force the outcome that is best for them, not for current VSTA Shareholders.