Mid-TermHey everyone,
I think the line that was mentioned in the Sokoll announcement sums up where the company is at:
"The focus of the Company's drug program now turns from the discovery and proof of concept phase to activities focused on optimizing the formulation and bioavailability of GAP-107B8 in specified cancers using clinical delivery mechanisms; establishing the formal safety profile data required to gain approval for human use."
In the short-term (next month) the share price will most likely be capped in the low twenties unless something material changes overnight. The rationale for this is because of the 7.5 million warrants that are expiring come August 22nd. At this point anything even at 21 cents someone would short the stock and cover to take advantage of a warrant that will be useless come September.
Mid-term (next year) things continue to look very promising. In my opinion, I think it's just a matter of completing the tests that other pharmas have requested until some sort of deal is reached. This is my opinion so take it for what it's worth. I see things unfolding with some sort of deal within the next year as these tests wrap up, and when further funding is required to proceed into the phases of human trials.
I have my reasons for thinking that....One of them being that Stormont continues to buy more of this at a premium to the market to ensure all of their warrants are exercised before they would expire on August 22nd. When Bryden needs a lot of money for his other companies, you don't fund Pharmagap with more money (and acquiring more shares that would be tough to get rid of in a pretty illiquid market) unless you knew the shares would sell themselves in a licensing deal or takeover. They currently really don't have any other way to acquire a bigger stake, as the board are rejecting loans (I wonder why), and because there could be issues with participating in a PP after driving the price down.
Another reason being the amount of flack I receive when trying to suggest another way of raising money besides going the route of a PP. I am concerned about trying to illustrate to investors that the games of driving this down to buy back in on a depressed PP are over. This clearly isn't an issue with management, as I think they see the big picture of the game ending when the music stops. It was my perceived thought that the music was going to stop in 2-3 years time, but my thoughts have changed to a shorter time frame.
As long as the the test results continue to show what they have always shown, the share price will continue to accrue what it is due at some point.
Take care