VistaGen Therapeutics Inc (VTGN)

[borstalboy]

VSTA is between a rock and a hard place. Due diligence should have precluded the signing of the SPA and the issuance of the 8K and PR announcing such unless the due diligence indicated there was a strong possibility of completion. If that was the case, then an earnest deposit should have been made in conjunction with the execution of the agreement. That is just first year business law in college. The fact that the SPA is still in place after repeated failings to fund is astonishing, and reinforces the opinion that proper due diligence was not done. Lack of due diligence and the failure to terminate the agreement makes a lawsuit very unlikely. If VSTA is not aware of the two lawsuits that BGMO lost during the last two years, it will become aware of them if they start to pursue a legal remedy. Their attorney would probably advise against incurring court costs and legal fees to win a judgement that can't be collected. It would have made sense to terminate the agreement prior to filing the delinquent 10K, and move on, but that didn't happen implying that there is still a chance of funding by BGMO. Nevertheless, I agree with you regarding your recommendation as to "the smartest thing VSTA can do". Doesn't look like anyone bought stock on the news anyway, so shareholders won't take action.