Akela Pharma Inc. AKLPF

RE: New Investor

[PxPx007]

Hey Sudbury ! Just like you I feel that the share consolidation and the IPO didn't go as planned. I am really concerned on the decision to realize an IPO in the recent context of liquidity crisis which reduce the financing capability of the firms. The company can't intervene on the decrease of the share price, since a buyback is not possible. Also, the latest share price decrease might jeopardize the whole process of financing since they probably won't have the minimum amount (2M * 6,5$). They might need to issue more stock at a lower price to achieve the 13M$. The disinterest from investors is quite unsettling. If the IPO fails, the price should increase since the shareholder's dilution does not happen. But this could be temporary because a future issue is inevitable. In this situation, i'm happy that they incur a license deal with J&J, which guarantee some liquidity to accomplish the trials. The liquidity problem on the stock is a real problem (this week we had a 1$ spread) and I am disappointed that the share consolidation didn't stimulate the institutional to buy some shares. Hope they will get proper financing to realize the trials otherwise the stock is doom to decrease. See ya ! PxPx