dontknowmuch wrote: Hey “broke”/“buddingprospect”/“Xstorm2”,
I was surprised at the lack of comments/discussion regarding the
March 5th news release about the $254,980 Warrant Exercise. I was curious, started to do some research but as stated in an earlier post I got sidetracked; then got busy; then forgot about it until the
Warrant Exercise Raises Additional $612,865 news release which generated a bit more discussion. Based on your recent posts it sounds like everyone is frustrated – I get it – I get there once in awhile myself.
*****
Part 1 – Cavaltinib Phase II trial Note that both news releases regarding the exercised warrants (actually all recent news releases) state the following in the “About Naturally Splendid Enterprises Ltd.” section:
NSE, through its joint venture Plasm Pharmaceutical, has been approved for conducting a phase 2 clinical trial approved by Health Canada for treatment of COVID-19.
Other than that we have had silence about it but we have not been told that it is
not going ahead. I assume when a decision is made one way or another we will be told with some people being happy and some not.
“broke” March 3
rd – “
Also I think they finally picked a third party company to run the Phase II trial. I still do not think it has started yet but possible may be soon from a US based company that does that sort of thing.” The only other time I recall the 3
rd party company being mentioned was the
Nov 3rd News Release the Plasm Pharmaceutical Inc. (“PLASM”) team has begun the process of assembling the additional team members and third party organisations that will be required to engage in and complete the clinical trial,
www.plasmpharma.com.
I am curious what made you think they had picked a 3
rd party company and that it may be a US based company given that there are many
Clinical Research Organizations in Canada?
“broke” March 9
th –
“I can only speculate and get frustrated with these guys. (And I was an early promoter of this new Covid19 venture!)” Yes, I can see the frustration… no more broke/Curc signoffs in your posts.
“broke” March 17
th –
“the Phase II trial is dead in the water at this stage” I am also curious what happened, if anything other than silence, between the 3
rd & 17
th for you to now think the Phase II trial is dead in the water?
“broke” no disrespect meant in any of my comments/questions; I appreciate all the DD that you share on this board; just asking in case there is some you haven’t shared and might consider sharing
;<) The only information I can add about Cavaltinib is that the process for obtaining a US trademark is moving forward but it seems to be a long, slow
process that has been going on since April 2020.
Regardless of the current status of the Covid virus/vaccines I hope the Clinical Trial is not dead in the water as I truly believe there is great potential for other uses of Cavaltinib over and above use as a therapeutic for Covid.
*****
Part 2 – Warrants exercised The
March 5th news release surprised me because the terms of the $0.055 warrants as stated in the
June 5th news release Naturally Splendid Closes Private Placement are -
each Warrant entitling the holder to purchase one additional common share for a period of two years from the date of the issue at an exercise price of $0.055 per share. Naturally Splendid has the right to accelerate the expiry date of the Warrants if, at any time, the average closing price of Naturally Splendid's common shares is equal to or greater than $0.10 for 10 consecutive trading days. In the event of acceleration, the expiry date will be accelerated to a date that is 30 days after Naturally Splendid issues a news release announcing that it has elected to exercise this acceleration right. The news release left me asking Who? and Why?
twice.
The first set - about the news release - is pretty straight forward:
1
st Who? – NSP put out the news release
1
st Why? – to let us know they got some cash? an opportunity to continue promoting e-commerce/plant based foods? …? …?
The second set - about the investor - is the interesting set:
2
nd Who? –…? the 2
nd news release states “a strategic investor” exercised the warrants
2
nd Why? – …? …?
The warrant certificates state
“This warrant certificate is void if not exercised on or before 5:00 pm (Vancouver Time) on June 4, 2022” – over 14 months until expiry! The average closing price of the shares has not been over $0.10 for 10 consecutive trading days so no acceleration permitted by the company.
Who? I went back over old notes, postings, news releases, and financials. I believe this strategic investor got involved with NSP in the 2
nd quarter of 2019 and advanced NSP a
half a million dollars by way of
unsecured due-on-demand loan. Subsequently, this loan was converted to equity by involvement in a PP, improving the balance sheet and eliminating accumulating interest costs. Both of these actions benefitted NSP. I checked the
Form 45-106F1 regarding the PP and think that the “strategic investor” is an Accredited Investor out of Ontario. Sorry, couldn’t find enough to unmask Zorro today
;<) Why? I have been invested in NSP for 7 years, I am an admitted cheerleader of the company and I personally hold a few of these warrants but so far after the 4 month hold expired I haven’t felt any compulsion to exercise them early. As much as I would like to help the company, if I exercised my warrants early it would not help them much. I suspect that soon enough I will be forced to exercise them due to the acceleration clause
:<) Since I don’t know who Zorro is, and it really isn’t important if I ever do know, I can’t ask and can only presume that this strategic investor fully believes in the Natera Plant-Based Foods, e-commerce strategies, other key initiatives of the company and the success of NSP going forward.
I am also assuming that the bulk of the warrants exercised early so far are from this one strategic investor and possibly some close associates that suggest his/her investment has gone from ~$500,000 to over $800,000.
So for me knowing that an Accredited Investor with apparent significantly deep pockets has been invested in/working with/helping out NSP for ~2 years that we are aware of… well let’s just say I am a feeling a lot more comfortable with my position in NSP. I have to say even more so considering the events of the last 2 or 3 years.
One last question… why release this at the end of the week on a Friday why not release it on Monday morning to begin the week with positive news? I’m guessing there is more to follow. Not a chance I will be sleeping in this week. This is all
JMO and speculation ;<) *****
Be safe! *****
“Living in the sunshine” Always DYODD DKM