Replies to post #19759 on Genta, Inc (fka GNTAQ)

[The Holder]

It doesn't, read this snippet for insight into the truth.

Recent 8-K filed pretty much confirms a R/S as a stipulation, that is unless they don't want the money (the other half of the "up to 12MM in financing").

"The 2009 Notes include certain events of default, including a requirement that the Company effect a reverse stock split of the Company’s Common Stock within 105 days of the Initial Closing. There are currently not enough shares of common stock authorized under the Company’s certificate of incorporation to cover the shares underlying the 2009 Notes."

[Sprycel]

All I know is if we stay at this level and we do the maximum reverse split of 100 to 1, the stock price would only be 5.7 cents!! What would that accomplish? If the stock price was .02 then the 100 to 1 would take the price to the .20 price noted in this agreement! Something has to happen to the share price for the maximum R/S to be effective!

[garywoodruff]

what don,t you understand! you have to read between the line,s The Notes will bear interest at an annual rate of 8% payable semi-annually in notes with similar terms at the Company’s option, and will be convertible into shares of Genta common stock at a conversion rate of 500,000 shares of common stock for every $1,000.00 of principal.
The first one-half of the Notes, or $6 million, will be issued upon initial closing of the transaction. Holders of the Notes shall have the right, but not the obligation, to purchase an equal amount of additional Notes until the earlier of 36 months from the initial closing date or 90 days after the first regulatory approval of Genasense for marketing by the European Medicines Agency (EMEA) or the Food and Drug Administration (FDA).
The Company shall have the right to force conversion of the Notes in whole or in part if the closing bid price of the Company’s common stock exceeds $0.20, as adjusted for stock splits, for a period of 20 consecutive trading days. }****The Notes are secured by a lien on all assets of Genta.***{

GNTA had to Guaranteed that there would be no reverse stock split to get this note!!!!!!!!!!!!!!!
enough said goodbye