A 10-Q can make for some very interesting reading! Prior to March 31, 2019, the TAUG Investment Company had dumped ALL its VTGN common shares for a realized loss of $34,630. The TAUG investment Company continued to hold warrants to purchase 320,000 at a strike price of $1.50 or a total of $480,000. During Fiscal Q1 2020, i.e. April 1, 2019 thru June 30, 2019, the TAUG Investment Company purchased 230,000 restricted VTGN shares at a price of $1.25 per share, however the "author" of the 10-Q appears to be confused. Per the June 30, 2019 10-Q:
Note there is no mention of the direct buy for 230,000 restricted shares, also including warrants to purchase an additional 230,000 @ $1.50, but the 10-Q includes the following:
"Out of the money by .25 per share" is complete BS! The warrants were out of the money by .80 per share, as the VTGN closing price on June 30, 2019 was .70 per share.
Without any further information, it appears the TAUG Investment Company is currently holding 230,000 VTGN common shares, showing an unrealized loss of $126,500, and warrants to purchase another 550,000 VTGN shares at a strike price of $1.50, or a total outlay of $825,000. The warrants are out of the money and not publicly traded, so the Asset value of the warrants is deemed to be zero.
Anything beyond what was disclosed in the June 30 10-Q is pure conjecture. It would hard to rationalize buying more VTGN shares, when the cash is needed to support the chewing gum startup. We know for a fact the TAUG Investment Company dumped its initial VTGN common holding to generate cash, even at a loss, to finance the chewing gum venture. Has the Investment Manager, CONSULTANT CEO Seth Shaw, dumped more VTGN for a loss? The investors will only know the details, when the next 10-Q is filed in mid-November.