Back in the 90s and early 00s a very common con was the “Reg S” scam. Using an exemption from the registration requirements companies could sell stock with virtually no disclosure, nor oversight. The catch, the shares could only be sold to non-US persons or institutions. Americans were forbidden to purchase Reg S stock.

Boiler rooms would buy huge blocks of Reg S stock at massive discounts from the trading price of the shares on the open market. Then, some of the stock would be spread around to various nefarious stock promoters to create demand and volume.

The boiler rooms would then furiously call foreigners offering them shares of hot “US-listed” company X. Even better, the call scripts would read, is that these shares are available at a discount, but only if you buy now.

As a hypothetical example, the boiler room baddies buy stock from a company, or from insiders, at $1, while the shares were actually trading at $4, and would offer them to the suckers at $3, pocketing the $2 “rip“.

But what’s the harm, you ask? The buyer still got a share of stock at $3, and the market price is $4 How can he lose?

Easy. The shares are not eligible to be resold for at least 1 year. This fact is usually left out of the boiler room sales pitch. By the time the year is up, the share price is usually back down to the $1 the boiler room paid, if not less. The foreign sucker? Left holding worthless paper.

Although not as common as it once was, every once in a while, the Reg S scam pops up again. Going through the recent filings for recidivist securities scoundrel Harmel S. Rayat controlled, magic stem cell wound care scam RenovaCare (RCAR), we can see the footprints of what was, most likely, a recent Reg S con.

RenovaCare claims to be working on a medical device to spray stem cells onto wounds, speeding their healing. You can check out more of their crazy claims on their webpage.

Although US listed, with an address in Scottsdale, AZ (owned by Harmel S. Rayat) the majority of the “work” being performed, if any, appears to be done by a German company and German individuals.

In early 2018 the shares of RCAR suddenly started to move on increased volume, reaching a crescendo, above $12, on the 23rd of February, before quickly collapsing.

And prices continued to fall, as volume rapidly disappeared.

Did anything happen in February 2018 that might explain this?

From RCAR‘s quarterly report, available here, we can look at “Item 2. Unregistered Sales of Equity Securities” and see the following:

There are 6 very interesting transactions starting on the 3rd of February and ending on the 22nd of February.

• On February 3, 2018, Thomas Bold, the Company’s President, CEO and Interim Chief Financial Officer received 44,083 shares of common stock on a cashless basis, that is, they cost him $0.00 per share. Free stock.
• On February 11, 2018, an unnamed consultant received 17,480 shares for $0.00 per share.
• On February 12, 2018, Dr. Gerlach received 457,480 shares for $0.00 per share.
• On February 13, 2018, a nameless holder received 100,000 shares at $1.10 per share.
• On February 22, 2018, Kenneth Kirkland, a member of the Company’s board of directors, received 41,033 shares for $0.00 per share.
• On February 22, 2018, Mr. Sierchio, a member of the Company’s board of directors, received 35,028 shares for $0.00 per share.

And upon reading further we find out that these shares were issued under an exemption from the registration requirements pursuant to, you guessed it, Regulation S.

In all, about 695k shares were issued in February at an average cost of just $0.16. Makes one wonder what an offshore boiler room could sell those for, when the shares were trading for $12.

Reg S deals would certainly not be unknown to Harmel. He was already busted by the SEC twice for sleazy stock scams. Once in 2000 and again in 2003. But nothing seems to faze the amazing Mr. Rayat, as David Baines, from the Vancouver Sun, discovered in a great piece from 2007, see here, about Harmel’s solar scam, then called Octillion (OCTL).

Today, Octillion is known as Solarwindow Technologies (WNDW), and is still controlled by Harmel. They do have a fancy new webpage, however:

Look familiar?

THE CONTENT CONTAINED IN THIS BLOG REPRESENTS ONLY THE OPINIONS OF THE AUTHOR. THE AUTHOR MAY HOLD EITHER LONG OR SHORT POSITIONS IN SECURITIES OF VARIOUS COMPANIES DISCUSSED IN THE BLOG. THIS COMMENTARY IN NO WAY CONSTITUTES INVESTMENT ADVICE, AND SHOULD NEVER BE RELIED ON IN MAKING AN INVESTMENT DECISION, EVER. THIS BLOG IS NOT A SOLICITATION OF BUSINESS: ALL INQUIRIES WILL BE IGNORED. THE CONTENT HEREIN IS INTENDED SOLELY FOR THE ENTERTAINMENT OF THE READER, AND THE AUTHOR.

A reverse-merger based in Eden Prairie, MN, hyping nonsense, recently came to our attention, NeuroOne Medical Technologies (NMTC). This filthy company shares many similarities to another reverse-merger turd, Biotricity (BTCY), we’ll examine that scam another time. For now, let’s look under the covers at NMTC.

There was recently a conversion of notes at $1.80/shr, along with 100% warrant coverage at $1.80. Our guess is that we are seeing a walk-up (aka a “rig”) in front of a real promotion as those shares are being sold.

The company originally came public in 2011, as Original Source Entertainment, a Jody Walker shell. Ms. Walker has been responsible for countless scams: RNBI, ALKM, VHUB, RIHT, RJDG, PVTA, KRED, NAMG, DMHI, and AIDC just to start.

The original nominee holders were:

In 2014, the control block was sold to a young gentleman named, Amer Samad:

Amer moved the company to an address near Buffalo, NY. By April, 2017 some stock had leaked out, and Amer still held 69% control.

In July 2017, the shell merged with a medical device company in Minnesota, NeuroOne, Inc., creating NeuroOne Medical Technologies (NMTC). Curiously Amer returned 100% of his holdings for cancellation.

This leaves 1.573mm existing shares, and 6.292mm shares issued in the merger for a total outstanding of 7.865mm shares. One unanswered question is where did those existing shares, which would be free-trading, end up? Typically in these sorts of scams, these shares are actually secretly in the hands of the promoters/insiders. Another question is who has been paying Amer? An unnamed related party.

Just who is this related party? That remains unanswered (for now) as well, but at BuyersStrike! HQ we have some ideas.

The merger into the shell was arranged by an outfit called Highline Research Advisors (HRA), which is made up a few ex-John Thomas Financial (expelled by FINRA, raided by Feds), ex-Merriman (expelled by FINRA), ex-Agincourt rejects, Theodore Kalem & Nikolay Kukekov. Their HRA shop has moved from JTF to Merriman to Agincourt and now they hang their hats at another bucket shop, Corinthian Partners.

Here’s Theodore’s CRD:

And Nickolay’s:

The working theory here at HQ is that finding this shell was no chance occurrence for Kalem and Kukekov. Mr. Samad‘s name appears in a previous Kalem/Kukekov deal, Citius (CTXR). See the CTXR S-1 filed September 11, 2015. Given that they probably knew Amer from this prior turkey, it is highly likely that one of them, or an entity they control, was the related party funding the shell.

After the NMTC merger the new shareholder list looked something like this, from the most recent NMTC proxy, filed April 27, 2018.

Would it surprise you, dear reader, to learn that there are shenanigans afoot? Chromium 24 LLC and Lifestyle Healthcare LLC are actually undisclosed related parties. Their total ownership is over 18%. Likely tripping up all sorts of disclosure violations, just for a start. 

How are they related?

When pulling the ownership statement for Chromium 24, LLC we find a familiar family name, Kalem:

“That’s only a coincidence,” the touts and shills might say. Perhaps, perhaps not. Let’s dig deeper, from Bloomberg:

And how about Lifestyle Healthcare, LLC? Let’s read Nickolay’s biography carefully:

Kukekov is an owner of both entities, and clearly has a close relationship with Kalem. Case closed. And this is not the only piece of garbage bioturd/medical device scam stock with these two fine gentlemen lurking behind the scenes.

The content contained in this blog represents only the opinions of the author. The author may hold either long or short positions in securities of various companies discussed in the blog. This commentary in no way constitutes investment advice, and should never be relied on in making an investment decision, ever. This blog is not a solicitation of business: all inquiries will be ignored. The content herein is intended solely for the entertainment of the reader, and the author.

Back in March 2012 a wretched Siesta Key, FL shell company called Global Group Enterprises (GGET) was born out of the offices of Diane J. Harrison.

Diane is well known among fans of small cap stock scams, and to the SEC. She has the rare honor of being one of the few lawyers ever chastised for their role in aiding, abetting, and perpetrating stock frauds.

The SEC’s complaint alleges that attorney Diane J. Harrison, Esq. and her husband, Michael J. Daniels, both of Palmetto, Florida, manufactured at least five microcap issuers with the undisclosed intent to sell them based on their status as public companies with purportedly unrestricted shares available for resale in the public markets. According to the complaint, Daniels and Harrison created the false appearance that the companies were pursuing specific business plans with independent management and shareholders by installing friends and family (including defendant Catherine A. Bradaick-Zolla of Sarasota, Florida, who also provided other assistance to the fraud) as purported officers and shareholders.

and that’s not all:

The SEC’s complaint also alleges that Harrison participated in a separate fraudulent scheme involving at least 11 undisclosed blank check companies secretly controlled by Alvin S. Mirman and Sheldon R. Rose. The SEC previously filed enforcement actions against Mirman and Rose, who were also convicted of criminal charges and sentenced to prison based on the same alleged conduct. According to the SEC’s complaint, Harrison provided at least 21 false legal opinion letters in furtherance of Mirman and Rose’s scheme.

Read the full complaint here.

The shell was ostensibly run by Andrew Keck, whose wife, Sarah Keck, ran another Harrison scam, Neutra Corp (NTRR).

Not long after, in February 2013, control of the shell was bought by Ed Tobin, Christopher Brown and the fine folks at GEM Advisors (aka Global Emerging Markets aka GEM Group etc.) in NYC. Only now, the company has moved from one dirty lawyer, to another.

Yes, our good friend, and ex-convict, Adam S. Gottbetter. Readers might recall his Very Bad Day.

Fast forward to 2015, and the GGET shell merges with a private bioturd, creating TYME. Naturally there is a press release to trumpet the good news. Perhaps the contact name will ring a bell?

Indeed, it’s the Big Ram himself, part of any sell side whore dream team. Most famous for his relentless shilling of Ampio (AMPE).

Funny that his resume doesn’t show his moonlighting:

Nor does his CRD:

Or does it? It turns out Rags was fired from not one, but two, bucket shops for failing to disclose his lucrative side business!

FIRM DISCOVERED THAT INDIVIDUAL APPARENTLY HAS BEEN ACTING AS THE INVESTOR RELATIONS CONTACT FOR A PUBLIC COMPANY IN COMPENSATION FOR WHICH HE HAD RECEIVED SHARES OF COMMON STOCK IN THE COMPANY, ALONG WITH CASH PAYMENTS. NEITHER THE IR ROLE NOR OWNERSHIP OF THE SHARES AND CASH PAYMENTS WERE DISCLOSED TO THE FIRM

Read the full CRD here to learn more.

Just how lucrative? How about 250,000 shares and over $8k a month, for a part-time gig hyping reverse merger trash.

With two dirty lawyers and a dubious sell side whore working IR, just wait until we dig into the “trial” of TYME’s magic pill and its “results”.

THE CONTENT CONTAINED IN THIS BLOG REPRESENTS ONLY THE OPINIONS OF THE AUTHOR. THE AUTHOR MAY HOLD EITHER LONG OR SHORT POSITIONS IN SECURITIES OF VARIOUS COMPANIES DISCUSSED IN THE BLOG. THIS COMMENTARY IN NO WAY CONSTITUTES INVESTMENT ADVICE, AND SHOULD NEVER BE RELIED ON IN MAKING AN INVESTMENT DECISION, EVER. THIS BLOG IS NOT A SOLICITATION OF BUSINESS: ALL INQUIRIES WILL BE IGNORED. THE CONTENT HEREIN IS INTENDED SOLELY FOR THE ENTERTAINMENT OF THE READER, AND THE AUTHOR.

As we explored in Part 1, the provenance of Tyme Technologies (TYME) is hardly encouraging. We have a saying at BuyersStrike! HQ, “Past is prologue, always” but some might argue that past association with notorious scam lawyers Diane Harrison and Adam Gottbetter, along with a shady IR/bucket shop shill, Raghuram Selvaraju, doesn’t reflect the amazing potential of Tyme’s cancer treatment, SM-88.

Quite the contrary, Tyme’s past completely predicts Tyme’s nonsense treatment, its poorly designed trials, and its terrible efficacy.

SM-88 is actually a combination of four compounds, three of which are already approved drugs, easily available.

Sirolimus aka Rapamune (rapamycin)

Dilantin (phenytoin)

Uvadex (methoxsalen)

and

“Magic” Tyrosine (a modified form of Tyrosine, a non-essential amino acid)

Rapamune and related drug Afinitor are already used in oncology. So is Uvadex. Dilantin was once commonly prescribed to brain cancer patients for seizure suppression, but there have not been any reports of improved outcomes with Dilantin therapy.

With 2 known, and potentially 4 active compounds in this cocktail, one would think a study should have at least two arms:

1. SM-88 arm (R+D+U+mT)
2. R+D+U arm (active comparator)

Or better yet, to be considered well designed, at least 8 arms:

1. SM-88 arm
2. Rapamune only arm
3. Dilantin only arm
4. Uvadex only arm
5. R+D+U arm
6. R+D arm
7. R+U arm
8. D+U arm

Let’s see what clinical trials the good people at Tyme are actually running.

A quick search on Clinicaltrials.gov shows four studies. Two are recruiting, two are not yet recruiting.

First up is study NCT02562612, a breast cancer study entitled, simply, “Study of SM-88 in Advanced Cancers“. This study was announced in 2015, but as of today is still not enrolling.

According to the company, the goal of the study is:

To assess the response rate and PFS in previously treated breast cancer patients. Additional objectives include the pharmacokinetics of multiple ascending doses of SM-88, a cocktail combination of 4 drugs being developed for the indication of metastatic breast cancer. Secondary objectives of this study include an assessment of safety and tolerability of ascending doses of orally administered SM-88. Additional response data will also be collected.

Overall response rate (complete response + partial response) by central review of modified RECIST 1.1 using blinded independent central review (BICR) of radiological scans.

THE CONTENT CONTAINED IN THIS BLOG REPRESENTS ONLY THE OPINIONS OF THE AUTHOR. THE AUTHOR MAY HOLD EITHER LONG OR SHORT POSITIONS IN SECURITIES OF VARIOUS COMPANIES DISCUSSED IN THE BLOG. THIS COMMENTARY IN NO WAY CONSTITUTES INVESTMENT ADVICE, AND SHOULD NEVER BE RELIED ON IN MAKING AN INVESTMENT DECISION, EVER. THIS BLOG IS NOT A SOLICITATION OF BUSINESS: ALL INQUIRIES WILL BE IGNORED. THE CONTENT HEREIN IS INTENDED SOLELY FOR THE ENTERTAINMENT OF THE READER, AND THE AUTHOR.

Today’s the day. The day a filthy reverse merger bioturd called Tyme Technologies hosts a conference call to discuss the early results from it’s ongoing study of SM-88, a cocktail of 3 already approved drugs plus their magic Tyrosine.

We’ve already examined the birth of TYME, and its relationship to not one, but two, sanctioned lawyers and one moonlighting sell side shill, in Part 1, here. We’ve also looked at the four clinical trials testing SM-88, and learned that not a single one is truly legitimate. These “studies” have neither control arms nor double-blinding. Read more about them in Part 2, here.

Right now let’s look at the early data for the pancreatic cancer study, NCT03512756. It can be found in this abstract.

So, although the original study plan was for 115 participants, as of September 2018 the company had only managed to enroll 36.

Of these 36 subjects, only 83% (30/36) remained on treatment. What happened to the other 6?

Of the 30 that remained on treatment, only 16 were “evaluable” for CTC (Circulating Tumor Cell) blood testing. What happened to the other 14?

Of the 16 that received CTC tests, 11 showed reductions. Sounds impressive, but something is off about this. Nowhere in the clinical trial record does it actually mention CTCs as being an outcome measure! The only listed outcome measure of this study is Overall Response Rate using RECIST 1.1:

The abstract continues, mentioning that 2 of 9 subjects showed CA19.9 (a tumor marker for pancreatic cancer) declines. But CA19.9 is not an outcome measure. And where did this group of 9 patients come from? What happened to the others?

Less and less patients seem to be available as the abstract continues. Only 6 were eligible for the initial scheduled assessment. And 3 of 4 had what the company called “RECIST or PET SUV responses”.

What happened to the other 2 out of 6? And why the change from using only RECIST as the outcome measurement? PET SUV is not part of the study protocol. One can be sure that if the patients actually had a true RECIST response, PET SUV would never have been mentioned.

One can expect the scum behind this biodreck to hype these results, 3/4 = 75% ORR using their bucket shop math, but the real number, if one wanted to look at this data in the most favorable light possible is that only 3/36 patients had a measurable response.

36 patients enrolled

30 patients remained on treatment

16 patients were evaluable for CTC – Not a real, specified, outcome measure.

9 patients evaluable for CA19.9 – Not a real, specified, outcome measure.

6 patients made it to initial assessment

4 patients were actually evaluated

3 patients had a response using a non-standard criteria not in the clinical trial plan

3/36. That’s 8.3%. In an unblinded study. And even then, the study is so poorly designed it is impossible to tell which agent, or agents, had any activity.

Fail.

THE CONTENT CONTAINED IN THIS BLOG REPRESENTS ONLY THE OPINIONS OF THE AUTHOR. THE AUTHOR MAY HOLD EITHER LONG OR SHORT POSITIONS IN SECURITIES OF VARIOUS COMPANIES DISCUSSED IN THE BLOG. THIS COMMENTARY IN NO WAY CONSTITUTES INVESTMENT ADVICE, AND SHOULD NEVER BE RELIED ON IN MAKING AN INVESTMENT DECISION, EVER. THIS BLOG IS NOT A SOLICITATION OF BUSINESS: ALL INQUIRIES WILL BE IGNORED. THE CONTENT HEREIN IS INTENDED SOLELY FOR THE ENTERTAINMENT OF THE READER, AND THE AUTHOR.

Today after the bell, #fakeinnovation company Zogenix (ZGNX) announced that the FDA issued a “Refusal to File” letter for their recent NDA for “Fintepla“. This is absolutely the correct decision. Why?

Because Fintepla is not a new drug at all. It is #fakeinnovation. Fintepla is just a new brand name for a very dangerous drug that was taken off the market in 1997 for causing horrific heart valve problems in adults. That drug? Fenfluramine, aka Pondimin, aka the “Fen” in “Phen-Fen“.

Somehow the idiots at ZGNX thought 22 years later nobody would remember, and it would be a good idea to repurpose the drug and offer it to children. Guess not.

And the bigger idiots, of course, are the sycophantic sell side shills, like this moron, Danielle “Shill” Brill from Piper Jaffray.

After news like this she drops her price target from $72 all the way down to $68. As we say here at BuyersStrike! HQ, “hoes gots to eat too!”

THE CONTENT CONTAINED IN THIS BLOG REPRESENTS ONLY THE OPINIONS OF THE AUTHOR. THE AUTHOR MAY HOLD EITHER LONG OR SHORT POSITIONS IN SECURITIES OF VARIOUS COMPANIES DISCUSSED IN THE BLOG. THIS COMMENTARY IN NO WAY CONSTITUTES INVESTMENT ADVICE, AND SHOULD NEVER BE RELIED ON IN MAKING AN INVESTMENT DECISION, EVER. THIS BLOG IS NOT A SOLICITATION OF BUSINESS: ALL INQUIRIES WILL BE IGNORED. THE CONTENT HEREIN IS INTENDED SOLELY FOR THE ENTERTAINMENT OF THE READER, AND THE AUTHOR.

Well look who shows up as a buyer in the recent Soliton (SOLY) private placement? Peruse the recently filed S-1/A, and one will discover a not-so-mysterious entity called the ASJ Living Trust, controlled by none other than stock promoter extraordinaire, Adrian James.

He also controls another selling shareholder, Vanguard Financial Trust, likely named such to fool retail suckers.

Adrian runs South Florida stock promotion shop Stockwire Research Group which dissolved in March of this year.

You might remember Adrian from his involvement in various Barry Honig scams, like Musclepharm (MSLP) or Riot Blockscam (RIOT). Or perhaps you remember him from his hilarious lawsuit against fellow stock promoter Jonathan Lebed!

When crims fight, we all laugh, and we all win. Oh, the company you keep.

THE CONTENT CONTAINED IN THIS BLOG REPRESENTS ONLY THE OPINIONS OF THE AUTHOR. THE AUTHOR MAY HOLD EITHER LONG OR SHORT POSITIONS IN SECURITIES OF VARIOUS COMPANIES DISCUSSED IN THE BLOG. THIS COMMENTARY IN NO WAY CONSTITUTES INVESTMENT ADVICE, AND SHOULD NEVER BE RELIED ON IN MAKING AN INVESTMENT DECISION, EVER. THIS BLOG IS NOT A SOLICITATION OF BUSINESS: ALL INQUIRIES WILL BE IGNORED. THE CONTENT HEREIN IS INTENDED SOLELY FOR THE ENTERTAINMENT OF THE READER, AND THE AUTHOR.

Today is a very special day friends, it marks an all time low for Steve Rouhandeh and Mark Ahn‘s reverse merger mega stinker Abeona Therapeutics (ABEO).

Steve, a well known stock promoter (see this great piece by Aaron Elstein here) somehow transitioned from hawking dot-bombs to bio-turds. Mark Ahn of Galena infamy hardly needs an introduction.

For those unfamiliar with their latest sinkhole, Abeona started life way back in 1974 as Chemex Corporation. In 1983 it became Chemex Pharmaceuticals. In 1996 it became Access Pharmaceuticals. In 2014 it became PlasmaTech Biopharmaceuticals, In 2015 it finally became Abeona. Here’s a stock chart going back as far as Bloomberg has data:

Please note the all time low, $1.89 is today (23 August 2019), the all-time high was $218,000 back in 1981. That is impressive value destruction. Well done SCO (and Mark).

Always remember Maxim 1: ALL REVERSE MERGERS ARE SCAMS. ALL OF THEM. EVERY SINGLE ONE. IN ONE WAY OR ANOTHER.

THE CONTENT CONTAINED IN THIS BLOG REPRESENTS ONLY THE OPINIONS OF THE AUTHOR. THE AUTHOR MAY HOLD EITHER LONG OR SHORT POSITIONS IN SECURITIES OF VARIOUS COMPANIES DISCUSSED IN THE BLOG. THIS COMMENTARY IN NO WAY CONSTITUTES INVESTMENT ADVICE, AND SHOULD NEVER BE RELIED ON IN MAKING AN INVESTMENT DECISION, EVER. THIS BLOG IS NOT A SOLICITATION OF BUSINESS: ALL INQUIRIES WILL BE IGNORED. THE CONTENT HEREIN IS INTENDED SOLELY FOR THE ENTERTAINMENT OF THE READER, AND THE AUTHOR.

While reading the series of stories in the Washington Post about the bribery scandal currently engulfing various Virginia politicians and shady Star Scientific (STSI), a documentary about a curious insect was playing on the television.

The North American cicada, Magicicada cassini, is famous for its distinctive chirp, and its life cycle, returning every 17 years. And so it is with some con men residing in the lower rungs of the stock market, reappearing every so often, and promoting their worthless shares with the same siren songs.

In January 1988 an article appeared in JAMA discussing Retin-A, a derivative of vitamin A, as a treatment for wrinkles. It set off an explosion in the use of Retin-A and a flurry of hype around some other, less well studied, products. The frenzy was so great that then-FDA commissioner Frank Young issued a warning to the public. An article in the LA Times, available here, explains:

Young said some unethical pharmacists, dermatologists and manufacturers were promoting and selling mixtures called Retin-A that actually contain different amounts of the active ingredient, retinoic acid.

Some manufacturers, he also said, are making bogus creams sold as Retin-A or as look-alike products that contain no retinoic acid…The FDA said it was “actively investigating a number of firms” promoting and selling wrinkle creams

Imagine the reaction at a small struggling firm in Massachusetts, called Spectra Pharmaceuticals (SPTPQ) when the JAMA article hit. For years Spectra, its Chairman and CEO, Dr. Al Maumanee of Johns Hopkins’ Wilmer Eye Institute, along with another scientist, Dr. Scheffer Tseng, had been studying their very own vitamin A derivative as an eye ointment first at Hopkins, and later at the Harvard-affiliated Massachusetts Eye and Ear Infirmary. But the studies were quite controversial.

According to a New York Times article, available here:

Dr. Scheffer Tseng, tested an experimental vitamin A ointment on hundreds of patients from 1984 though 1986 at the Massachusetts Eye and Ear Infirmary. The ointment, tested as a remedy for chronically dry eyes, apparently worked for only a few patients.

Subsequent investigation by the school and the hospital found that the researcher made unauthorized modifications to his study, varying the approved doses and enrolling more patients than approved, and that he minimized negative findings while he sold his rights to the formula and sold his stock in the company he had helped form to market the product.

According to an article in the Boston Globe, available here, Tseng‘s supervisor at Harvard, Kenneth R. Kenyon was forced out of his administrative positions at the hospital because of the scandal.

If that was not enough, according to interview transcripts with Dr. Maumanee, available here, there were problems with the original Maumanee and Tseng work at Johns Hopkins as well. They failed to obtain both the necessary Investigational New Drug (IND) approval from the FDA, and permission from the JCCI (Joint Commission on Clinical Investigation) at Hopkins to perform the study.

The Spectra affair became a political matter.. Maumanee stated that:

(W)e were investigated by the Subcommittee on Oversight and Investigations of the House Committee on Energy and Commerce, the Maryland Medical Society Committee on Ethics, the U.S. Securities and Exchange Commission, the Massachusetts Securities Exchange, the National Institutes of Health, the Harvard committee on ethics, and the Johns Hopkins Medical School Committee on Misconduct.

The House Committee hearings were led by Rep. Ted Weiss. According to this article from the December 1989 edition of the Multinational Monitor:

Weiss’s hearings focused attention on several previously reported conflicts of interest. At a Harvard-affiliated hospital, for example, a researcher, Scheffer Tseng, distorted the results of experiments he conducted for a company, Spectra Pharmaceutical Services, Inc., established to market an eye ointment he had developed. Declaring the ointment a success by virtue of his fraudulent data, Tseng was able to jack up the price of Spectra stock. He then sold his Spectra holdings at a reported profit of $1 million. The faculty overseer who should have enforced Harvard’s conflict of interest guidelines failed to do so, apparently because he owned stock in Spectra and profited from Tseng’s deceit.

What is a disgraced company with a failed Retin-A-like product of its own to do? The answer was simple. Hype the eye ointment, Lacramore, as an anti-aging wrinkle fighter.

The scheme, according to the SEC, was simple. In May of 1988, a stock promoter, who had actually helped form the company, now working out of the offices of a bucket shop in Florida, deposited 600,000 shares of Spectra into a brokerage account.

During the next two months the promoter had some fake research reports written up and gave them to the bucket shop for distribution to thousands of potential investors victims. The reports made outlandish claims of future revenue and earnings, along with comparisons to Retin-A. According to an article, available here, in the Richmond Times-Dispatch:

The federal complaint argued that the reports led investors to believe that a product called Lacramore could make wrinkles disappear, though it proved to be ineffective. The suit accused [The Promoter] of purchasing Spectra stock at below-market rates, then selling it while promoting the company to other investors.

According to a Boston Globe article, available here:

[The Promoter] paid Florida financial newsletter publisher Robert E. Baker at least $5,000 to produce a glowing report about Spectra, which was then mailed to thousands of doctors by a company owned by O’Donnell and [Promoter].

Among other things, the report claims that a new market had been discovered for Spectra’s eye drug: as a substitute for a popular skin cream. And it touts the company’s university connections, especially through Maumenee. “Other drug companies have research arms,” it declares “Dr. Maumenee has friends and former students in key positions in almost every university ophthalmic research institute in the world.

As the bogus research reports circulated, the promoter sold 350,000 of his shares, while failing to properly report the sales.

In late 1993 the SEC finally came down on Spectra, along with various officers, shareholders, promoters, fake analysts, brokers, and the sleazy bucket shop behind the pump and dump, but by then it was far too late for the public shareholders. The company had already collapsed.

The name of the stock promoter? Jonnie Williams the CEO of Star Scientific (STSI), here is a pic. The bucket shop where he had an office? Florida-based Kashner Davidson. His defense attorney in the SEC case? A man named Paul L. Perito.

Much like the cicada, the Spectra cycle repeats with Star.

1. A purported breakthrough anti-aging product? Star’s got that with anatabine.

2. A troubled research relationship with doctors at Johns Hopkins? Star’s got that. Read Adam Feuerstein’s piece on that issue here.

3. A series of fake research reports by penny stock touts with outlandish claims? Star’s got that. Read about Patrick Cox right here.

4. A Federal Government investigation? Star’s got that too. Subpoenas have been served. Read more here.

5. A bucket shop pushing the stock? Star’s got one. Gilford Securities, home of “analyst” Otis Bradley.(Otis B. also pumps ECTE)

6. A lawyer named Paul L. Perito? Surprise! He’s the Chairman and President of STSI.

One must ask how far away is a collapse, a Q at the end of the ticker and a delisting?

The content contained in this blog represents only the opinions of the author. The author may hold either long or short positions in securities of various companies discussed in the blog. This commentary in no way constitutes investment advice, and should never be relied on in making an investment decision, ever. This blog is not a solicitation of business: all inquiries will be ignored. The content herein is intended solely for the entertainment of the reader, and the author.

Recently, The Street.com ran an excellent piece exploring the relationship between bio-dreck Galena Biopharma Inc. (GALE) and a sleazy stock tout shop that goes under many names (DreamTeam Group, MissionIR, Quality Stocks, etc.), you can read it here.

We first ran into this crew during the SEFE promotion in the springtime of 2012. And back then an enterprising reader sent in pictures of the vacant SEFE offices. Read that piece here.

The DTG stock touting swine have removed the disclaimer about GALE from their website, but a captured image was posted on Twitter (see here) and copied below:

Captured Disclaimer on GALE

A BuyersStrike! reader, @FranklinForward made a great suggestion to visit DTG HQ. And so we decided to take a field trip. But to where, exactly?

On the bottom of a press release, was a poorly worded address block:

Contact: Senior Editor DreamTeamGroup (DTG) Communications 7399 North Shadeland Avenue Indianapolis, IN Phone: 317-623-3050

On the bottom of their website was this address block:

© Copyright . DTG 7399 North Shadeland Avenue Suite 123 Indianapolis, IN 46256 317.623.3050

Now a CEO as astonishingly brilliant and competent as Galena’s Mark Ahn surely would have gone to visit this top-flight firm at their headquarters in Indianapolis. He probably would have brought Galena IR head Ms. Remy Bernarda along as well for a little sitdown and perhaps a coffee.

If that is where the GALE execs would have gone to do some routine due diligence on their new IR partner, that is where, together, we will go. And so, dear readers, we are off to Indiana.

N. Shadeland runs through a somewhat dilapidated neighborhood in Indy, more comfortably a home for check cashing outfits and “We Buy Gold” shops than for a legitimate PR firm. Presented below are pictures from the two possible storefronts that match the 7399 N. Shadeland address.

The first is a vacant storefront:

What goes on in here?

This impressive piece of real estate lies between “L-Stylish” at 7409 N. Shadeland, and a health food store at 7391 N. Shadeland. There is a Dollar Tree located two storefronts over to the right at 7373 N. Shadeland.

L-Stylish!

See the Health Food shop to the left of Dollar Tree.

Alternatively, it is possible that DTG is being run out of this UPS Store branch.

Either way, it is both extremely suspect and not a surprise.

And in another non-surprise, DreamTeam has in the past worked closely with a Boca Raton, FL based bucket shop, Noble Financial, which (naturally) has been a big fan of GALE.  Noble has been putting out “research” on what is a really stock promotion plaything.

DreamTeamGroup (DTG) to Provide Social Media Coverage of Noble Financial Capital Markets Ninth Annual Equity Conference

Indianapolis, United States (IBwire.com – January 22, 2013) DreamTeamGroup, a consortium of unique marketing brands that utilizes one dynamic approach to connect publicly traded companies with a variety of investors, will provide the investment community with ongoing social media coverage of Noble Financial Capital Markets’ Ninth Annual Equity Conference. The conference is being held this week at the Hard Rock Hotel in Hollywood, Florida.

Bucket shop brokers in Boca and sleazy stock touts working out of a stripmall storefront. Now that is truly a Dream Team.

The content contained in this blog represents only the opinions of the author. The author may hold either long or short positions in securities of various companies discussed in the blog. This commentary in no way constitutes investment advice, and should never be relied on in making an investment decision, ever. This blog is not a solicitation of business: all inquiries will be ignored. The content herein is intended solely for the entertainment of the reader, and the author.

UPDATE: Read Adam S. Gottbetter’s plea agreement:

USA v GOTTBETTER

Delusional, self-important, penny stock lawyer Adam S. Gottbetter is having a really bad day. He was first exposed in Barron’s in a great piece by Bill Alpert in 2009. Read it here. Today, 6 years later, in an amazingly rare action against a lawyer, the SEC charged Gottbetter with a litany of offenses.

The SEC alleges that Adam S. Gottbetter orchestrated promotional campaigns that touted the prospects of microcap companies and enticed investors to buy their stock at inflated prices so he and his cohorts could sell shares they controlled and reap massive profits.  Gottbetter enlisted Mitchell G. Adam and K. David Stevenson to help him in the last of three schemes he conducted in a six-year period.  They repeatedly cautioned each other about the dangers of missteps that might draw law enforcement attention to the scheme, such as failing to keep secret the identities of Adam and Stevenson.  The three rehearsed stories they would tell if ever questioned by law enforcement.  During one meeting in New York City, Gottbetter complained about the difficulties of stock manipulation but conceded that robbing a bank was the only other way to make so much money so quickly.

Read the full release here.

And if that was not enough, Adam’s Tuesday got even worse.

In a parallel action, the U.S. Attorney’s Office for the District of New Jersey today announced criminal charges against Gottbetter, Adam, and Stevenson.

Gottbetter has been responsible for tons of filthy reverse merger deals, here is a small list:

Cur Media (CURM)

Ekso Bionics (EKSO)

Neurotrope (NTRP)

Symbid (SBID)

China TMK Battery (DFEL)

Rackwise (RACK)

Li3 Energy (LIEG)

among many more.

Amazingly enough, the Feds managed to stop the Gottbetter group in the middle of preparations for a new con, one which brings penny stock shenanigans into the new age of algorithmic trading:

They schemed to drive up the stock price for purported oil and gas exploration company HBP Energy Corp. (HBPE) through fraudulent trades generated by a trading algorithm. They then planned to launch an extensive promotional campaign featuring multiple call centers, roadshows, and a listing on the Frankfurt Stock Exchange.  After creating the false appearance of liquidity and investor interest, they planned to dump their shares of the stock on unsuspecting investors around the world.  While Stevenson and Adam managed to do some small coordinated trades, the scheme was thwarted before the planned manipulation and promotion could be launched when Stevenson was arrested by the FBI.

The only question left is how long will it take the regulators to halt and delist all of his filthy scams?

Recently, dreadful, scandal-plagued, bio-dreck Galena Biopharma (GALE) released results (here) from their Phase 2 study of GALE-401 aka Anagrelide CR. This is a new “Controlled Release” formulation of an existing generic drug, Anagrelide. Anagrelide is used to lower a patient’s platelet count. And just like Galena itself, there is less to Anagrelide CR than meets the eye.

Galena, at the time run by (now-disgraced) Mark Ahn, picked up the rights to the product in January 2014, through the acquisition of Mills Pharma, a paper entity with one asset, Anagrelide CR. Mills was owned by a firm called Aceras Biomedical. Aceras was funded by now defunct bucket shop Rodman & Renshaw, and run by a ragtag group of refugees from Steve Rouhandeh’s stock touting SCO entities and Lindsay Rosenwald’s bio-dreck factory Paramount. [Read more about stock promoter Steve Rouhandeh and SCO in a Wall Street Journal article by Aaron Elstein, here.]

Interestingly enough, Mark Ahn still serves on the board of Steve Rouhandeh’s recently re-awakened Plasmatech Bio (PTBI) stock promotion, where SCO is one of the largest holders, and several current and former SCO employees are on the Board of Directors.

Given the nature of the players involved, if the sharks at Aceras really had a winner, they would have tried to take it public during the greatest bull market in biotech history, or at the very least stuffed it into reverse merger with a shell they controlled. Instead they sold Anagrelide CR to pathetic, desperate, Galena. As typical for Galena, even the purchase price for Mills was obfuscated. Here is the relevant language from the press release:

Under the terms of the agreement, Galena paid an up-front payment to Mills Pharmaceuticals’ owners. Additionally, Mills Pharmaceuticals owners are eligible to receive one-time payments of up to 4,000,000 shares with the achievement of specified regulatory milestones. The owners of Mills Pharmaceuticals are also eligible to receive $3 million upon FDA approval of a new drug application in respect to GALE-401.

However in the corresponding 8-k filing, available here, Galena details the actual purchase price of Mills:

• $1.60mm in cash up-front.
• $0.20mm in cash post-closing, subject to adjustments.
• Up to 3mm shares of GALE upon initiating the first clinical trial of Anagrelide CR aka GALE-401.
• Up to 3mm shares of GALE upon initiating the first Phase 3 clinical trial of GALE-401.
• $3mm in cash upon FDA approval of GALE-401.

While Galena management, and the sell side shills hype GALE-401 incessantly, the truth is that the drug is doomed to failure both clinically and commercially.

Here is what Galena said about GALE-401 at the time of the acquisition:

GALE-401 is expected to greatly decrease the adverse event rate relative to the approved product…Existing data strongly suggest reducing the Cmax while maintaining the overall exposure to the drug, or AUC (area under the curve), reduces the rate of adverse events without compromising efficacy. GALE-401 significantly decreases the Cmax by up to 70% while preserving nearly 100% of the AUC.

We can compare the recent GALE-401 study, with an older study of generic Anagrelide of comparable size. Back in 1992, a study of regular anagrelide was conducted on 19 evaluable patients. Further information on this study is available here.

So how did Galena do? Were they able to reduce adverse events versus normal, generic, Anagrelide? Were they able to match generic Anagrelide’s efficacy? What about dosing convenience with the new controlled release formulation?

First lets examine safety. According to Galena:

The Phase 2 study demonstrated that GALE-401 was well tolerated with primarily Grade 1 and 2 toxicities in 16 of the 18 subjects

16 out of 18 subjects (89%) reported “toxicities” aka adverse events, aka side-effects.

In the 1992 study, only 8 out of 19 patients (42%) reported adverse events. The regular formulation causes fewer than half as many adverse events as Galena’s supposedly improved version. GALE-401 fails on safety.

OK, Galena bulls ask, maybe there is a difference in efficacy, favoring GALE-401? Let’s see.

In Galena’s recent study of 18 patients, results showed:

Complete Responses in 7 out of 18 patients, a CR rate of 39%. Partial responses in 7 out of 18 patients, a PR rate of 39%, leading to a combined ORR (Overall Response Rate) of 78% (14/18).

How does this compare to generic Anagrelide? The study from 1992 showed complete responses in 13 out of 19 patients, for a CR rate of 68%. Partial responses in 3 out of 19 patients, a PR rate of 16%, leading to a combined ORR of 84%.

While the ORRs are close, generic Anagrelide is still superior. And comparing CRs, which is obviously the most important measure, generic Anagrelide outperforms GALE-401 by an astounding 174%. Cheap, generic, Anagrelide provides nearly double the rate of complete responses as Galena’s lame CR formulation.

Well, even if it is not as safe, and not as effective, maybe Galena’s Anagrelide CR will be more convenient for patients and improve compliance?

In the Galena study GALE-401 was taken by patients twice a day. In the generic Anagrelide study, surprise, the regular formulation was also taken twice a day.

Results are summarized in the table below.

Summary of Clinical Trial Results for Anagrelide and Anagrelide CR

Controlled release formulations are supposed to have a gentler side-effect profile, be equally if not more effective, and be more convenient for patients with less frequent dosing. Galena’s Anagrelide CR failed in every possible way. GALE-401 is a clinical joke.

Commercially, Galena’s track record is so poor it would be better if they had no record. Their first attempt, the re-launch of a me-too fentanyl product called Abstral, was both controversial and mind-bogglingly underwhelming. See a chart of recent drug (re)launches, including Galena’s Abstral, here.

Galena has touted GALE-401 as having a $200mm market opportunity (TAM). Back in January 2014 the company said:

GALE-401 has an estimated peak market size of approximately $200 million in the U.S.

But this is bullshit. The entire American market for Anagrelide in 2014 was barely $100mm. A prescription for generic Anagrelide can be purchased for about $25.00/month.

Prices for a One Month Supply of Anagrelide

The competitive landscape is fierce. Take a look at the current providers of Anagrelide in the US:

List of Current Manufacturers of Anagrelide Selling in the USA

Galena can hardly sell a highly addictive pain killer, how are they going to compete against a cheap generic, that works better, has a lower rate of side effects and is equally convenient with twice a day dosing?

Not that it matters, as Anagrelide CR is clinically irrelevant, but Galena has no IP protection in the US for GALE-401. From the most recent Galena 10K:

Anagrelide hydrochloride, the sole active pharmaceutical ingredient, or “API,” in GALE-401, has been approved for many years and, thus, it is not possible to obtain composition of matter patents that cover anagrelide hydrochloride. As a result, competitors who obtain the requisite regulatory approval can offer products with the same API as GALE-401, so long as the competitors do not infringe any formulation patents that we may have or may obtain or license, if any. The only patent protection that we have or are likely to obtain covering GALE-401 are patents relating to very specific formulations, methods using these formulations, and methods of manufacturing and packaging. We have two granted patents in the United Kingdom that expire in 2019 and we are prosecuting pending patent applications in other territories including but not limited to the U.S. and Europe, which may not issue prior to any potential commercialization of GALE-401.

GALE-401, just more lies from Galena management and their sell side shills, whoring themselves out for banking business.

The content contained in this blog represents only the opinions of the author. The author may hold either long or short positions in securities of various companies discussed in the blog. This commentary in no way constitutes investment advice, and should never be relied on in making an investment decision, ever. This blog is not a solicitation of business: all inquiries will be ignored. The content herein is intended solely for the entertainment of the reader, and the author.

While 2020 is clearly the year of the “Wuhan Flu”, just four years ago, in 2016, a different viral scourge was making headlines. We are discussing, of course, the Zika Virus. Unlike the current Coronavirus pandemic, Zika most certainly attacked children. Most notably crossing the placental barrier and destroying fetal brain tissue in the womb.

The first Zika fatality in the USA occurred in February 2016. As of early March 2016 there were nearly 200 cases in the United States.

In late August 2016, the city of Miami Beach begins closing off some areas to prevent the spread. Tourists, especially pregnant women, are especially worried. Stories of Zika spreading throughout the United States, of being sexually transmitted for months after infection, and more, move like wildfire across the interwebs.

But fear not, a small company with no revenue history, based in Salt Lake City, is ready to ease your fears, and maybe let you get rich at the same time! Introducing Zika Diagnostics, Inc. 

During that summer of 2016, a shell by the name of Watermark Group rapidly changed hands between Moses Gross of Brooklyn, NY, to Adam Kovacevic, who through Double Grouper LLC was acting as front for Todd Violette of Palos Verdes Estates, CA.

Adam and Todd quickly flipped the shell to Ted Murphy of Toronto. For his trouble Adam appears to have made a quick $25k in two weeks.

A month later, the company emerges from the darkness, with a new name, a new address, and a change of business. Says the renamed Zika Therapeutics in an 8k (available here):

(note the address – 8160 S Highland Drive, SLC)

“The Company intends to respond to the 2016 outbreak of the Zika virus by providing state of the art diagnostics tools to the medical community”

From that same 8k, here are the officers and directors of the company:

Dwight Egan and Reed Benson, both of whom need no introduction to long-time fans of SLC schlock stocks. Astute readers will also note Ted Murphy is still around along with Robert Salna, both no strangers to Canadian penny lovelies.

Of course, as befalls filthy reverse mergers, nothing ever happened with the company and in late August 2019, about 3 years after it was born, Zika Therapeutics was mercy-killed by the Feds (see here).

So what does any of this have to do with CODX, a company in Salt Lake City ready to tackle the world’s Coronavirus testing needs?

Seem familiar?

THE CONTENT CONTAINED IN THIS BLOG REPRESENTS ONLY THE OPINIONS OF THE AUTHOR. THE AUTHOR MAY HOLD EITHER LONG OR SHORT POSITIONS IN SECURITIES OF VARIOUS COMPANIES DISCUSSED IN THE BLOG. THIS COMMENTARY IN NO WAY CONSTITUTES INVESTMENT ADVICE, AND SHOULD NEVER BE RELIED ON IN MAKING AN INVESTMENT DECISION, EVER. THIS BLOG IS NOT A SOLICITATION OF BUSINESS: ALL INQUIRIES WILL BE IGNORED. THE CONTENT HEREIN IS INTENDED SOLELY FOR THE ENTERTAINMENT OF THE READER, AND THE AUTHOR.
 

Pink sheet retail investor AIDS-turned-Cancer-turned-Coronacrap favorite Cytodyn (CYDY) has been quite the darling of the stuck-at-home newbie trader crowd lately. It seems not a day goes by without some form of stock promotion. And today, 28 April, is no exception.

Presenting an absolute howler of a puff piece on Seeking Alpha, entitled “Finding The Kink In COVID-19’s Armor – Preventing ARDS” by one Theodore Zucconi.

Here’s his bio on Seeking Alpha:

Ted’s piece this morning hypes up not just Cytodyn (CYDY), but also Galectin (GALT), and Ampio (AMPE) of all things. He’s written a few other times hyping CYDY as well.  Remember the 13 shots on goal laugher? “CytoDyn’s 13 Shots On Goal De-Risk Investment”

Here is his disclosure statement on today’s article:

Ignore the fact that he is long, focus on the last sentence, and keep it in mind, dear reader, as you continue.

Some may recall that Galectin was once called Pro Pharmaceuticals (PRW then PRWP).

And those with really good memories, might recall that Theodore Zucconi was the CEO and a director (until 2018!):

Seems like that disclosure is a little light?

THE CONTENT CONTAINED IN THIS BLOG REPRESENTS ONLY THE OPINIONS OF THE AUTHOR. THE AUTHOR MAY HOLD EITHER LONG OR SHORT POSITIONS IN SECURITIES OF VARIOUS COMPANIES DISCUSSED IN THE BLOG. THIS COMMENTARY IN NO WAY CONSTITUTES INVESTMENT ADVICE, AND SHOULD NEVER BE RELIED ON IN MAKING AN INVESTMENT DECISION, EVER. THIS BLOG IS NOT A SOLICITATION OF BUSINESS: ALL INQUIRIES WILL BE IGNORED. THE CONTENT HEREIN IS INTENDED SOLELY FOR THE ENTERTAINMENT OF THE READER, AND THE AUTHOR.

Last night, as April came to a close, pink sheet Coronacrap stock, Cytodyn (CYDY), a favorite of retail investors both in the USA and Germany (Freut mich), released an amended S3 filing with the SEC. (Catch up on Who’s Touting Cytodyn Now and Who’s Suing Cytodyn Now too)

This filing will allow for millions of shares to be dumped on the market. How many millions?

How about 46.4mm shares!

As this is an amendment to a previous registration statement, we can take a look at the old S3, from January 2020, and compare the amounts.

Between January 31 and April 30, the company has increased the amount of stock to be sold by 40.3 30.3mm shares.

And just who are the lucky sellers?

From the January document:

And now the updated list:

One name should immediately stand out to long time readers and fans of biodreck stock promotion scandals. Michael McCarthy. Remember him from the Dream Team Group? In a series of article by Adam Feuerstein at TheStreet.com (now at Stat News) and Richard Pearson (MoxReports), these undisclosed-pay-for-puff-piece article stock promotion schemes were exposed. And the SEC took action concerning these fake posts.

Currently, Cytodyn is the subject of relentless stock promotion, today 1 May, the company is doing a livestream entitled “Wall Street Reporter’s Next Super Stock“.

Being the Next Super Stock isn’t easy. It costs money. How much?

Clients pay $9,500 for 3 month marketing distribution program, which includes featured visibility in SPOTLIGHT, LEADERS, FEATURED STOCKS, NEWSMAKERS, and weekly highlight in e-mail newsletter. Current 3 month clients: BOSQF, CYDY, MDCL, NGTF. Next SuperStock Conference Presenters/ 3 month Premium Visibility distribution: NEXCF $18,500, HOTH $18,500, NGTF $18,500, CYDY $18,500.

Looks like CYDY coughed up $29k for super stock status. And to whom are they paying exactly. Who is behind Wall Street Reporter? A gentleman named Jack Marks.

But he is really Jacob Mestechkin, who has a long history of stock promotion!

And you may also have seen a series of videos hyping Cytodyn and its likely completely ineffective (see NEJM letter here), woefully old, CCR5 entry inhibitor, leronlimab. One was just posted yesterday, 30 April.

The videos (link here if you can stand to watch it without getting sick to your stomach) are slickly produced by an outfit called Proactive Investors. Richard Pearson, one of the writers who exposed filthy stock promotion outfit, Dream Team Group, also exposed Proactive’s shady undisclosed paid promotion tactics. Read that expose here.

Plenty more names on that list of selling stockholders to explore….until then.

THE CONTENT CONTAINED IN THIS BLOG REPRESENTS ONLY THE OPINIONS OF THE AUTHOR. THE AUTHOR MAY HOLD EITHER LONG OR SHORT POSITIONS IN SECURITIES OF VARIOUS COMPANIES DISCUSSED IN THE BLOG. THIS COMMENTARY IN NO WAY CONSTITUTES INVESTMENT ADVICE, AND SHOULD NEVER BE RELIED ON IN MAKING AN INVESTMENT DECISION, EVER. THIS BLOG IS NOT A SOLICITATION OF BUSINESS: ALL INQUIRIES WILL BE IGNORED. THE CONTENT HEREIN IS INTENDED SOLELY FOR THE ENTERTAINMENT OF THE READER, AND THE AUTHOR.

After the bell today a Form 144 filing (get it here in the April 30 link) was released concerning everybody’s favorite pink sheet bioturd, Coronacrapper extraordinaire, Cytodyn (CYDY).

1175680 CytoDynInc NaderPourhassan 20200430

Yes, CEO Nader “The Nadir” Pourhassan sold 4.8mm shares on 30 April, while telling the world the amazing wonders of Cytodyn‘s ancient one time AIDS-then cancer-now-coronavirus drug. Said the company that day:

Of course the NEJM letter about those renal transplant patients shows the results of leronlimab were nothing short of, well, nothing.

The shares did see very strong stock promotion though. Strong enough for The Nadir to dump all that stock, that appears to be at zero basis. Nice work.

THE CONTENT CONTAINED IN THIS BLOG REPRESENTS ONLY THE OPINIONS OF THE AUTHOR. THE AUTHOR MAY HOLD EITHER LONG OR SHORT POSITIONS IN SECURITIES OF VARIOUS COMPANIES DISCUSSED IN THE BLOG. THIS COMMENTARY IN NO WAY CONSTITUTES INVESTMENT ADVICE, AND SHOULD NEVER BE RELIED ON IN MAKING AN INVESTMENT DECISION, EVER. THIS BLOG IS NOT A SOLICITATION OF BUSINESS: ALL INQUIRIES WILL BE IGNORED. THE CONTENT HEREIN IS INTENDED SOLELY FOR THE ENTERTAINMENT OF THE READER, AND THE AUTHOR.

After the bell last night a Form 4 filing (see last week’s infamous Form 144 filing here) was released concerning everybody’s favorite pink sheet bioturd, the Creme de la Creme of Coronacrappers, Cytodyn (CYDY).

First the CEO Nader “The Nadir” Pourhassan dumped a bunch of stock starting on the 30th of April, with an absolutely insane explanation (more on that soon, but start here), then the CMO, Scott Kelly let loose 1.2mm shares on the 1st of May. Taking advantage of severe cases of Coronamania among stuck at home retail investors both in the USA and Germany seems to be the new normal among bioturds and their execs.

THE CONTENT CONTAINED IN THIS BLOG REPRESENTS ONLY THE OPINIONS OF THE AUTHOR. THE AUTHOR MAY HOLD EITHER LONG OR SHORT POSITIONS IN SECURITIES OF VARIOUS COMPANIES DISCUSSED IN THE BLOG. THIS COMMENTARY IN NO WAY CONSTITUTES INVESTMENT ADVICE, AND SHOULD NEVER BE RELIED ON IN MAKING AN INVESTMENT DECISION, EVER. THIS BLOG IS NOT A SOLICITATION OF BUSINESS: ALL INQUIRIES WILL BE IGNORED. THE CONTENT HEREIN IS INTENDED SOLELY FOR THE ENTERTAINMENT OF THE READER, AND THE AUTHOR.

Another day, another relentlessly “optimistic” piece of promotional garbage touting everyone’s favorite Pink Sheet Reverse Merger coronacrapper, Cytodyn (CYDY). Today it is this swill which trumpeted an outlandish TAM (Total Addressable Market) figure that whipped up retail investors on both sides of the Atlantic this morning, before reality began to seep back in. How outlandish? See for yourselves:

Yes, $81bn, but that’s not all, maybe even $100bn!

Now for the sobering reality. Cytodyn has exactly zero approved drugs to sell. Zero. After much difficulty they have submitted a BLA to the FDA, to hopefully get their wonder drug, leronlimab, approved in early 2021. Guess that $81bn won’t come this year, if at all.

But even if they get their drug approved, the actual TAM is far far smaller. For you see, dear reader, leronlimab is what is known as a “CCR5 Entry Inhibitor“, and one that must be delivered by IV or injection. There already is a another CCR5 entry inhibitor on the market, known generically as maraviroc, or by its brand name, Selzentry. Unlike the hyped unapproved bullshit from Cytodyn, maraviroc is a convenient pill, available today.

Contrary to anything the long list of promoters, or even The Nadir, might claim, leronlimab is not a new class of medication, it is not a breakthrough, it is just another entry in an existing segment.

And how large is the Total Addressable Market for CCR5 Entry Inhibitors? Currently maraviroc has 100% of that market, and it was, for 2019 a paltry $88mm USD and SHRINKING.

Even if leronlimab magically captured 100% market share, $88mm is still only about 7/10ths of a percent of the supposed $12bn HIV TAM. Good luck with that $81bn!

Oh, and coronavirus? If CCR5 entry inhibition had anything to do with Coronavirus, Doctors world-wide would already be using maraviroc. Surprise! They aren’t. 

THE CONTENT CONTAINED IN THIS BLOG REPRESENTS ONLY THE OPINIONS OF THE AUTHOR. THE AUTHOR MAY HOLD EITHER LONG OR SHORT POSITIONS IN SECURITIES OF VARIOUS COMPANIES DISCUSSED IN THE BLOG. THIS COMMENTARY IN NO WAY CONSTITUTES INVESTMENT ADVICE, AND SHOULD NEVER BE RELIED ON IN MAKING AN INVESTMENT DECISION, EVER. THIS BLOG IS NOT A SOLICITATION OF BUSINESS: ALL INQUIRIES WILL BE IGNORED. THE CONTENT HEREIN IS INTENDED SOLELY FOR THE ENTERTAINMENT OF THE READER, AND THE AUTHOR.

Finally, it is the 21st of July and the long awaited trial “results” from everyone’s favorite reverse-merger pink sheet Coronacrapper, Cytodyn (CYDY) have arrived! Well, not really, because the company didn’t really announce any real results this morning (read more about that here). What The NaDDir* did announce was a collection of bizarre ramblings about wonder drug leronlimab‘s supposed safety from the Phase 2 trial of leronlimab in mild/moderate Covid patients (trial details here).

From this morning’s press release:

The headline? Impressive Results….39% of patients in (the) placebo arm had SAEs as compared to only 14% of patients in (the) leronlimab arm.

More like impressive bullshit. Just a few lines later one can see that 6 out of 28 patients in the placebo arm, and 5 out of 56 patients in the leronlimab arm reported SAEs. That’s actually 21.4% and 8.9%.

Coming from the same klown krew who still can’t manage to file an acceptable BLA submission, is their failure to do simple math much of a surprise? Or was this a deliberate deception to make leronlimab somehow look more appealing in front of tomorrow’s shareholder meeting where management is hoping to get another 100mm shares authorized so the dilution can continue unimpeded.

*Spelled thusly for a double dose of that sweet sweet stock pimping.

THE CONTENT CONTAINED IN THIS BLOG REPRESENTS ONLY THE OPINIONS OF THE AUTHOR. THE AUTHOR MAY HOLD EITHER LONG OR SHORT POSITIONS IN SECURITIES OF VARIOUS COMPANIES DISCUSSED IN THE BLOG. THIS COMMENTARY IN NO WAY CONSTITUTES INVESTMENT ADVICE, AND SHOULD NEVER BE RELIED ON IN MAKING AN INVESTMENT DECISION, EVER. THIS BLOG IS NOT A SOLICITATION OF BUSINESS: ALL INQUIRIES WILL BE IGNORED. THE CONTENT HEREIN IS INTENDED SOLELY FOR THE ENTERTAINMENT OF THE READER, AND THE AUTHOR.

Readers may recall that back at the end of April 2020, we discussed a number of lawsuits filed by former insiders against everyone’s favorite reverse-merger pink sheet Coronacrapper, Cytodyn (CYDY), and its klown krew of kreme de la kreme managers including The NaDDir* and Dr. Scott Kelly. Missed it? Catch up here.

You will find no mention in yesterday’s bizarre Cytodyn press release touting the utterly INsignificant “safety” results from the Phase 2 trial of wonder drug leronlimab in mild-to-moderate Covid patients, of any developments in the Delware case Alpha Venture Capital Partners LP v. Nader Z. Pourhassan (2020-0307-PAF). Nor will you find any mention of legal developments in The NaDDir’s bizarre rant on a paid stock pumping video put out on Youtube yesterday. Nor will you find any 8k filings from the company about developments in that case.

But there have been developments in the case, bad developments. Developments that Cytodyn likely does not want their retail shareholder base to learn about before the vote on authorizing 100mm more shares today, the 22nd of July.

Back in early May, the company formed a Special Litigation Committee of the Board to conduct an internal investigation of the allegations in the lawsuit. Has The NaDDir mentioned this on any of his many stock touting webcasts and conference calls?

On July 21st the court released a letter, dated July 20th, detailing  recent unusual actions by Chairman and CMO Dr. Scott Kelly.

According to the letter:

Mr. Kelly directly contacted Tony Caracciolo, the representative of Plaintiff Caracciolo Family Trust, to discuss this case. Without my knowledge, Mr. Kelly and Mr. Caracciolo had two conversations by telephone on July 17, 2020, and July 18, 2020. Despite Mr. Kelly’s text message to Mr. Caracciolo stating that Mr. Kelly “received permission from the attorneys” to reach out to Mr. Caracciolo directly, Plaintiffs’ counsel did not receive any notice of Mr. Kelly’s intent to do so.

And what did Kelly want to discuss?

Kelly attempted to threaten and intimidate Mr. Caracciolo and the other Plaintiffs into dropping their derivative claims. Specifically, Mr. Kelly claimed that this lawsuit is an impediment to the Company’s attempt to up-list to NASDAQ, essentially arguing that an asset of the Company (this derivative action) is preventing CytoDyn from being up-listed to NASDAQ. He further stated that if the lawsuit is not “dropped,” and the Company is unable to up-list, the Company will publicly “blame” Plaintiffs and “will sue” Plaintiffs for bringing this lawsuit. In other words, in a misguided attempt to circumvent counsel, the SLC, and this Court, Mr. Kelly threatened Mr. Caracciolo with a public smear campaign and a potential lawsuit unless Plaintiffs dropped their derivative claims.

For anyone who needs the obvious pointed out to them (aka anyone long this piece of reverse-merger trash) here is the important part:

“Specifically, Mr. Kelly claimed that this lawsuit is an impediment to the Company’s attempt to up-list to NASDAQ, essentially arguing that an asset of the Company (this derivative action) is preventing CytoDyn from being up-listed to NASDAQ.”

Yet The NaDDir* and Kelly have repeatedly reassured investors on recent webcasts and calls that CYDY qualified for a NASDAQ listing, and it was just a matter of paperwork. Clearly, they don’t. Is anyone here at BuyersStrike! HQ surprised? Hardly.

Want to read a copy of the letter? You can find it on the docket, here. No access? OK, just this once, here you go, the July 20 Letter.

*Spelled thusly for a double dose of that sweet sweet stock pimping.

THE CONTENT CONTAINED IN THIS BLOG REPRESENTS ONLY THE OPINIONS OF THE AUTHOR. THE AUTHOR MAY HOLD EITHER LONG OR SHORT POSITIONS IN SECURITIES OF VARIOUS COMPANIES DISCUSSED IN THE BLOG. THIS COMMENTARY IN NO WAY CONSTITUTES INVESTMENT ADVICE, AND SHOULD NEVER BE RELIED ON IN MAKING AN INVESTMENT DECISION, EVER. THIS BLOG IS NOT A SOLICITATION OF BUSINESS: ALL INQUIRIES WILL BE IGNORED. THE CONTENT HEREIN IS INTENDED SOLELY FOR THE ENTERTAINMENT OF THE READER, AND THE AUTHOR.