Cotinga Pharmaceuticals Inc COTQF

Great potential but...

[RJSullivan]

This company has a lot of potential, as does their lead drug compound in clinical trials. That being said, they don't seem to have any strategic direction as far as the capital markets are concerned. Instead of doing one significant capital raise to get them through the clinical trial process, they keep coming back to the market every 5 or 6 months with small private placements, exhausting the market and existing shareholders. And they spend too much money for a small little company. Recent news of adding another high salary to their payroll (new president) and opening an extra office in Boston has not been well received by shareholders weary of the company's spending. Plus they keep changing IR firms every year with unrealistic mandates of focusing on institutional shareholders, as if the general constraints institutions have (min $1 share price; min market cap of $100 mill - or for many now $200 mill) shouldn't apply. Maybe the problem is not with the IR firms but the company not having a clue about the capital markets.