DEATH SPIRAL financing: The interest on the RESTRICTED loan (they can't use the funds) for 2016 was $3.5M from May to Dec. Galena modified the terms so that the interest can be paid with stock. I projected earlier that about 7M shares of dilution would pay the interest. In the SEC filing yesterday, the actual amount of shares issued was 9M, and and and 40M more shares of dilution is projected into 2018 just to pay the interest on funds that are restricted. As the dilution increases, the stock price drops. As the stock price drops, more dilution is needed. Hence the term DEATH SPIRAL financing.
YIKES!!! You don't want to be holding a bag with a DEATH SPIRAL financing in play. Another reverse split and another dilutive financing are expected this year.
This can't be good: GALE 401 Dispute: "On April 27, 2017, we received a notice from BioVascular, Inc., the licensor of GALE-401 (BVI), of an alleged material breach of our Exclusive License Agreement with BVI, dated December 20, 2013 (BVI License Agreement). BVI maintains that we are in breach of Section 4.5 of the BVI License Agreement. Section 4.5 of the BVI License Agreement generally requires that we use "Commercially Reasonable Efforts" to pursue development and commercialization of a product. BVI claims we have not used "Commercially Reasonable Efforts" to commence a Phase 3 clinical trial of GALE-401. The BVI License Agreement defines "Commercially Reasonable Efforts" to mean "the carrying out of obligations or tasks in a manner consistent with the efforts a similarly situated bio-pharmaceutical company with sufficient resources devotes to research, development, and/or marketing of a pharmaceutical product or products of similar market potential, profit potential or strategic value resulting from its own research efforts or for its own benefit, taking into account technical, regulatory and intellectual property factors, target product profiles, product labeling, costs, economic return, the regulatory environment and competitive market conditions in the therapeutic or market niche, all based on conditions then prevailing." Under the terms of the BVI License Agreement, to the extent we have materially breached our obligations thereunder, we have 90 days to cure such material breach (other than undisputed payment defaults) or such longer period of time as required to cure such breach if we have commenced reasonable actions to cure such breach and continue to diligently cure such breach. We believe we have used "Commercially Reasonable Efforts" in respect of GALE-401. We continue to have discussions with BVI regarding GALE-401. We are not able to predict the manner in which the dispute with BVI will be resolved." _________________________________________________________________________________________________________________________________________________________________________________________________________
27M cash at the end of Q1 ($11M) suit settlement and abstral payables ($6M) loss for Q2 -------- $10M cash on June 30th
How long will that last? How much will be needed to settle the class action suits?
Sell like the insiders and only buy when they buy back.
"On January 18, 2017, we received an inquiry from NASDAQ Listing Qualifications Department seeking information in connection with the subpoenas issued to the Company by the US Attorney’s Office for the District of New Jersey and the U.S. Attorney’s Office for the Southern District of Alabama. We responded to the inquiry on February 1, 2017 and March 31, 2017. We have not received any follow-up inquiries from NASDAQ. If we are not in compliance with the listing requirements under NASDAQ Listing Rule 5502(a)(2), we could be delisted by NASDAQ."
When is the DELISTING party?
Insiders ( Ghiglieri, Knapp, Burns, Nejadnik, Schwartz, Chin, Einhorn, Galiker, Hillsberg, Ashton, Kriegsman, Nisi, Gray) own 124,711 shares. That's less than an average of 10K shares each. Doesn't the janitor hold more shares? 124,711 owned by insiders / 46,567,392 shares outstanding = .002678 = about 1/4 of 1%.
No faith in the stock ever recovering.
Another REVERSE SPLIT is needed.
They should distribute the funds from the offering and close up shop. There will be nothing left in a few months.
Ghiglieri, The Undertaker. Ghiglieri was the CFO at Hansen Medical. The stock plunged from $375.00 and the Company was sold for $3.99 per share. Ghiglieri was the CFO and COO at NeurogesX for 10 years. The stock dropped from $10.00 to $0.005 and closed up shop after completing a $20M private placement and blowing all the funds. Sound familiar?
"The Company is evaluating the appropriate time to commence enrollment of the GALE-401 trial and anticipates making a definitive determination in the second half of 2017."
What are they waiting for? The trial will never get started! GALE-401 was part of the con. It's doubtful that it could ever get approved. Even if approved, GALE-401 couldn't compete with the low cost generics for the tiny market. Ghigli is dilly dallying, trying to decide whether to continue the elaborate ruse and waste money on a foolish trial or put it on moth balls. I suspect that he will go with the latter.
FOR SHAME!!! The stock is down 99% and the insider pigs are taking 50% bonuses, tells you all that you need to know about this sketchy operation and the dirt bags running it.
"On various dates starting on March 9, 2017 until March 21, 2017, Stephen F. Ghiglieri, Interim Chief Executive Officer and Chief Financial Officer, Bijan Nejadnik, M.D., Chief Medical Officer, John Burns, Vice President, Finance and Corporate Controller, and Thomas J. Knapp, Interim General Counsel and Corporate Secretary executed retention agreements effective February 1, 2017, whereby the Company would pay these officers fifty percent of their annual base salary"
They are raking it in before bankruptcy or before Ghigi has a fire sale. SHAMELESS SLEAZEBAGS!!!!
"We are not currently eligible to use a short-form Form S-3 registration due to our failure to timely file multiple current reports on Form 8‑K relating to our unregistered sales of equity securities under the Debenture, which we resolved by the filing of an 8-K on May 2, 2017. As a result, our principal executive and principal financial officer has concluded that we did not have effective disclosure controls and procedures as of March 31, 2017. Management intends to work with outside counsel to adopt formal training procedures to periodically educate the Company’s officers as to the Company’s SEC reporting responsibilities. However, we cannot provide assurance that we will not have further lapses in our disclosure controls and procedures, which could result in our failure to provide accurate and timely disclosure to our investors."
Not good at all.
GALE gives cancer, it doesn't have anything to treat cancer.
Can you name one biotech that spends more on G & A than R & D?
For Q1: R & D = $2.4M G & A = $2.7M The priority at Galena is filling managements' pockets, not developing drugs.
All the cash will vanish and Ghigli will close up shop.
Step right up!!! Who wants to buy 35 cents shares for 55 cents? Cayman has 9,000,000 shares for you. Don't be shy - buy!
Let's hope Antoniass has a stop loss in place, otherwise he'll lose everything like James2tx.
Markets UP and GALEdung DOWN. BwaHaHaaaaaaaaa James2tx, you really know how to pick'em. You found the dungiest pos - DOWN over 99&%!!!!!!!!
James2tx Gale Jim Henry Earl Stephen MoneyLoser and his other dozen aliases is the same LOSER, LIAR, and SCAMMER. No denials that he is a dumb buttt and always wrong - pumping to rip off moms and pops since $155.00. If there a SEC rule for posting lies, the scammer would doing time in prison already.
James and Antoniass: mentor and protege.
The contingent consideration relates to various milestone payments which are dependent on the quarterly sales achieved in calendar years 2016 and 2017 and annual sales from 2018 to 2022 exceeding specified sales targets. The maximum amount payable is $26.0m however management does not consider it likely that the associated very high sales targets will be achieved.
This is from page 70 of Midatech's 2016 annual report.
Jimbo's perfect record of wrong predictions remains intact.