Replies to post #8411 on RespireRx Pharmaceuticals Inc (fka RSPI)

[gershfinance]

The underwriter was JMP, Not JP Morgan.

Altogether, this is extremely disappoionting, but potentially necessary. One would certainly have hoped for better terms on this financing than a 25% discount to market value and warrants....

At this price, it's too low to sell, but I, too, am frustrated by management's decisions here....

Looks like an unlimited supply of stock beiong offered at 1.95....a PIPEr selling stock at cost and keeping the free warrants?

[Lungman424]

Smart move on Stoll's part...

Smart move my ass...if he could have done the deal at $2.50 a share I'd say, ok BP not knocking on the door, take the money and advance it yourself...but wiping out 30 million dollars of current shareholder value to raise 14 million "ain't" what I call smart move, besides JP Morgan isn't the underwriter. PLUS..what makes you think those 7 million shares won't be coming on the market if this stock recovers to 2.20- 2.30 area..anyway you shake it...it's a long road to hoe before any smiles in Mudville...

[upndown1313]

If this was so well thought out, he should have done this in July when sp was over $3, right after the hold was lifted.

[moosedogger]

Why did you change your mind? At $3+ to $5 or so, a financing makes more sense, but at $2 it seems like another giveaway to Rodman.

Last October you said:

>>STOLL- Take on debt in lieu of dilution...

Yes, debt is risky for developing stage companies, but not in this case..COR should obtain $20-30 million mid-term loan and pay it off with Big Pharma upfront proceeds and/or equity purchase at much higher prices or wait to do a secondary at higher prices after the Big Pharma deal is concluded. The loan proceeds would give COR the strength from which to negotiate a better deal with the pharma companies.

In no way should COR issue a secondary offer prior to the Big Pharma deal...that would be very unwise.<<

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