Generex Biotechnology Corp. (fka GNBTQ)

[RoswellChamp]

Clarifying the S-1 posted Friday, Jan 24....

Generex did not "sell" any new shares. The shares covered by the S-1 are issuable under warrants and preferred stock which was actually placed with certain investors last summer (July, as I recall.) At the time of that placement, those investors paid Generex about $1.2 myn for the warrants and preferred stock.

The investors are simply registering the shares covered by those warrants and the preferred stock which they already own for possible future sale. In the case of the warrants, should they choose to exercise and sell, they will have to pay Generex $.03 per share to get the stock. (yes, there are ways to sell the shares prior to exercise by shorting them versus the collateral of the warrants, but they would still eventually have to exercise the warrants to get the actually stock to cover the short position.)

It seems unlikely to me that such large investors, whoever they may be, are in this business to buy a stock for $.03 and then sell it for $.04 or $.05. Even with 60+ myn shares, there is not a lot of profit in that. I suspect they are looking for something significantly higher.

I would be interested in other opinions about that.