VistaGen Therapeutics Inc (VTGN)

[Investman432]

Platinum continued to fund senior secured notes in July to cover the cash burn. I am sure they are working on every viable opportunity to staunch cash burn and exit the position.

VSTA doesn't have any near-term viable business plan, but could do licensing or IP sale deals. All the consideration up to the total senior secured loan and interest will belong to Platinum before anything available for the other mounting unsecured liabilities. In most cases, the common will see nothing.

I am not sure why small holders aren't exiting --- either they aren't paying attention or there aren't really any. What euphoric exit do they think could happen to justify risk of holding shares at these prices. While most early stage pharma can support high market value while losing money, this company has demonstrated that its technology isn't highly prized in drug discovery. That is what passage of time and $50 mm spent, along with numerous pitches to companies and several demonstrations. The only active business I see are things like Hopkins which is using VSTA's stem cells but not their process for predicting drug impact on organs (i.e., the company's core technology).