Give the Gift of Stock
With all the hype and drama surrounding Generex these days, Monday's antics might have crossed the lines of sanity, even for those that have grown accustomed to this company's flair for the dramatic.
First we had Sunday's press release informing shareholders that Dr. Craig Eagle was in support of a reverse split of Generex's common stock - big surprise since he's on the Science Advisory Board of the company - and then shareholders greeted Monday morning with yet another PR, this time announcing that Dr. Joseph Rubinfeld, an independent scientific advisor to the Company and ANOTHER member of the Company's Scientific Advisory Board was also in support of the reverse split. Big surprise.
Are we to believe that Generex would issue PRs that were against the reverse split, especially while knowing that the current management team is whole-heartedly FOR it?
Is this a wise way to spend the cash that it costs to issue these PRs?
These are just a few questions that shareholders are going to ask after the antics of the past few days.
But the pressure-cooked 'Please Vote Yes' PRs not enough.
During the early afternoon hours of Monday, another PR was issued stating that the planned live web cast from the Nasdaq was postponed until Thursday, following the adjournment of the Special Meeting of the Company's Stockholders scheduled for Monday afternoon.
You couldn't think this stuff up without believing you're creating a show for the Ringling Brothers, but it would be fairly easy to surmise that the Board at Generex HQ makes it up on the fly, minute-by-minute, as if there's never a plan or a back-up plan in place.
I'll tell you what - that's not the way to procure the confidence of shareholders that is needed to push this reverse split through.
The press releases citing statements from company officials who - surprisingly - support the reverse split; the constantly adjourned meetings; the webcast that should have been Tuesday at the Nasdaq; the trading halt for news that didn't necessarily warrant one; the clown music in the background - enough is enough already.
If the RS doesn't go through, then the shareholders have spoken.
If it DOES go through, then there had better be an announcement identifying a major partnership - or some other news to that scale - in order to keep shareholders for wondering what the heck is so important about this RS that justifies the amateurish attitude that this company has undertaken for the past week. We'd have to hope at this point that a deal is all but done, but the partner wants GNBT on the Nasdaq for it to go through. I doubt that's the case, but that's one of the only scenarios that could justify the obsessive need to have that Nasdaq listing.
Look at Titan Pharmaceuticals. That company got booted from the AMEX, ended up as a pure penny play on the pinks, and then bounced to $2.50 because its pipeline became successful. It's the products that talk, not the exchange. A move to the bulletins will not kill GNBT if the products make it, although I get the impression that this is a life or deatch scenario for management, judging by the way they've been acting.
These antics do little to win votes, but do a lot to lose the faith of those who would be responsible for the management carrying out the battle plans of the company.
An investment in Generex is - at this point - an investment in the potential of Oral-lyn, and the cancer vaccine pipelin being developed by Antigen Express. In no means is a GNBT investment a vote of confidence for management.
If the products make it to market, then Generex will be huge, that's the bottom line, and Oral-lyn is close enough that we won't have to wait too long to find out.
Enough is enough already - let's move on.
Disclosure: Long GNBT.