WHY GNBT COULD MOVE BIG SOON

 

October 23, 2019 -- InvestorsHub NewsWire -- via Seeking Alpha 

Oct. 23, 2019 10:05 AM ET|About: Generex Biotechnology Corp. (GNBT), GNBT


Originaly Published On Seeking Alpha: www.seekingalpha.com/GNBT

  • Big win for GNBT shareholders as upcoming 1 for 1 dividend expected to be paid ONLY to float shareholders in next few days. Shareholders must hold shares through October 30, 2019 to receive dividend.

 

  • Sellers before October 30, 2019 lose the dividend.

 

  • Up list to NASDAQ and dividend expected by October 30, 2019 is likely to attract large institutional investors.

 

  • Share price could run in next few days as investors discover dividend may be close to being paid.

 

  • Over $173 Billion for 14 deals paid by Big Pharma acquisitions for first half 2019 dominated by cancer drugs. Average deal was $12.3 Billion.

 

  • GenerexA37 Breast Cancer Vaccine attracted Merck because it demonstrates high efficacy with low adverse side effects against many common cancers.

 

 

  • Upfront license payments for AE37 by Shenzhen BioScien Pharmaceuticals for Prostate Cancer in China, Taiwan, Hong Kong and Macau.

 

  • GNBT’s A37 Cancer Vaccine held by NuGenerex Immuno-Oncology expected to begin publicly trading by end of November 2019 creating valuable liquidity for GNBT and shareholders.

 

Summary

Several events are expected to occur in a very short-term window that could send Generex Biotechnology Corporation (GNBT: OTC) share price substantially higher.

Generex confirmed that the record date for the 1:1 (100%) stock dividend was recorded on August 30, 2019, and the dividend will be paid on October 29th to all shareholders who hold their shares through the ex-date of October 30, 2019. Anyone who sells their shares before the market close on October 30th will lose the dividend, which will be transferred to the buyer of your shares, just as anyone buying shares from now through October 30th will receive the 1:1 (100%) dividend from the seller of the shares.Management and company insiders, note holders, acquisition partners, and the pool shares controlled by Generex President & CEO Joe Moscato on behalf of the Pool owners have waived their rights to the dividend. Therefore, if any of these entities or persons sells their shares, they will receive a “Pay Due Bill” and personally owe the dividend shares to the buyer, which is their sole responsibility to pay; Generex will not pay the dividend for those who have waived the dividend.

Mr. Moscato stated, “It is official, and congratulations to all current shareholders and any new shareholders who purchase GNBT stock through October 30, 2019. This dividend and our Nasdaq up-listing, which is currently in review, highlight the end of our 3-phase plan put forth to shareholders in January 2017 to transform GNBT into an integrated life science and healthcare company with a focus on end to end solutions for physicians and patients who battle chronic, costly, and debilitating diseases like arthritis, diabetes, and cancer. Additionally, on the pay date, I will be retiring the nearly 21 million pool shares to significantly limit the dilution effect of the dividend on shareholders. These events are the catalysts in furthering our acquisition strategy, and we have a number of new announcements slated over the coming weeks that will further our mission! It is exciting times for Generex and our shareholders, and we look forward to continued growth and execution for our long-term plans.”

 

Mr. Moscato, stated, “Generex has been a leader in immunotherapy for nearly 20 years, with a wealth of clinical experience developing li-Key Hybrid immunotherapy vaccines that activate the CD4 and CD8 T-Cell immune response to attack tumors. We have completed one of the largest cancer immunotherapy trials ever with a 300-patient trial evaluating our HER-2/neu vaccine AE37 for the prevention of breast cancer recurrence. The results of that trial have led to a clinical trial in triple negative breast cancer combining AE37 with Merck’s PD-1 inhibitor Keytruda® for the treatment of triple negative breast cancer. By merging NuGenerex Immuno-Oncology with the public vehicle, we are unlocking the value of our multimillion-dollar investment in the li-Key technology and the development of AE37 and other immunotherapeutic peptide vaccine products.”

 

“Further, we have plans to expand the clinical development of AE37 in combination with the FDA approved checkpoint inhibitors for the treatment of several cancers that express HER-2/neu including prostate, bladder, urothelial, and renal cancers. We also plan to reactivate our melanoma program with li-Key hybrids that target the melanoma tumor biomarkers, GP100 and TYR.”

 

In a recent press release, Generex Biotechnology Corporation (www.generex.com) (GNBT) announced a merger transaction with a public company that is DTC eligible and current with its SEC filings to serve as a vehicle for the quotation of the common stock of its subsidiary NuGenerex Immuno-Oncology (NGIO) as an independent, publicly traded company. Generex is in the process of finalizing its annual report on Form 10-K, which will be filed in the coming days. The Form 10-K will include the audited financial statements for the legal documentation and Super Form 8-K filing for the merger of NGIO with the public vehicle. “We expect that NuGenerex Immuno-Oncology will be quoted on a public exchange by the end of November, and the 1:4 shareholder dividend that was paid to Generex shareholders in February 2019 will be converted into public shares shortly thereafter.”

 

Generex has positioned its wholly-owned cancer subsidiary NuGenerex Immuno-Oncology to be merged with the public company, thereby completing the company’s go-public strategy to realize the value of the Ii-Key technology and AE37 immunotherapeutic vaccine program. NGIO is currently enrolling a Phase II trial to establish the recommended biologic dose for AE37 Peptide Vaccine in combination with Keytruda® (Pembrolizumab) that will enhance the tumor-specific immune response and demonstrate efficacy in patients with advanced triple-negative breast cancer (NSABP FB-14); the trial is currently screening and enrolling patients at multiple clinical research sites.

 

“With the merger with this public company, we will not only have the vehicle for the NGIO listing, but we will also have a platform to incorporate additional companies, technologies, and immunotherapy products to augment the li-Key technology and advance our efforts in the field of cancer immunotherapy. I am happy that our GNBT shareholders will have the opportunity to realize the benefits of the NGIO stock dividend we paid at the beginning of the year and, as always, we will strive to continuously build value for our shareholders in Generex and now in NuGenerex Immuno-Oncology.”

 

We expect that NuGenerex Immuno-Oncology will be quoted on a public exchange by the end of November, and the 1:4 shareholder dividend that was paid to Generex shareholders in February 2019 will be converted into public shares shortly thereafter.

 

About Generex Biotechnology Corp.Generex Biotechnology is an integrated healthcare holding company with end-to-end solutions for patient centric care from rapid diagnosis through delivery of personalized therapies. Generex is building a new kind of healthcare company that extends beyond traditional models providing support to physicians in an MSO network, and ongoing relationships with patients to improve the patient experience and access to optimal care.

 

In addition to advancing a legacy portfolio of immune-oncology assets, medical devices, and diagnostics, the Company is focused on an acquisition strategy of strategic businesses that complement existing assets and provide immediate sources of revenue and working capital. Recent acquisitions include a management services organization, a network of pharmacies, clinical laboratory, and medical device companies with new and approved products.

 

Our newly formed, wholly-owned subsidiary, NuGenerex Distribution Solutions (NDS), integrates our MSO network with a pharmacy network, clinical diagnostic lab, durable medical equipment company (DME-IQ) and dedicated call center.

 

About Olaregen TherapeutixOlaregen Therapeutix, Inc. is a regenerative medicine company focused on the development, manufacturing and commercialization of products that fill unmet needs in the current wound care market. Generex aims to provide advanced healing solutions that substantially improve medical outcomes while lowering the overall cost of care. Olaregen's first product introduction, Excellagen (flowable dermal matrix) is a topically applied product for dermal wounds and other indications. Excellagen is a FDA 510K cleared device for a broad array of dermal wounds, including partial and full thickness wounds, pressure ulcers, venous ulcers, diabetic ulcers, chronic vascular ulcers, tunneled/undermined wounds, surgical wounds (donor sites/ grafts, post-Mohs surgery, post-laser surgery, podiatric, wound dehiscence), trauma wounds (abrasions, lacerations, second-degree burns and skin tears) and draining wounds, enabling Olaregen to market Excellagen in multiple vertical markets. Additionally, Excellagen can serve as an Enabling Delivery Platform for pluripotent stem cells, antimicrobial agents, small molecule drugs, DNA-Based Biologics, conditioned cell media and peptides. Olaregen's initial focus will be in advanced wound care including diabetic foot ulcers (DFU), venous leg ulcers and pressure ulcers. Future products focusing on innovative therapies in bone and joint regeneration comprise the current pipeline. Generex's mission is to become a significant force in regenerative medicine and advance the science of healing.

 

About our Service-Disabled Veteran-Owned Small Business (SDVOSB)This a Service-Disabled Veteran-Owned Small Business (SDVOSB) that specializes in the sale, marketing, and distribution of innovative medical products through a nationwide network of veteran owned distribution services.

 

About Pantheon MedicalPantheon Medical is a manufacturer of a physician friendly, “all-in-one”, integrated kit that includes plates, screws, and tools required for orthopedic surgeons and podiatrists conducting foot and ankle surgeries. Generex is developing and submitting several new product lines to the FDA which will include cannulated surgical screws, plates, and implants.

 

About MediSource PartnersMediSource Partners is a 10-year-old private company, currently contracted with over 25 vendors (including Pantheon Medical) for nationwide distribution of implants and devices for spine, hips, knees, foot, ankle, hand, and wrist surgeries. Additional product lines include biologics (blood, bone, tissue, stem cells), durable medical equipment, and soft goods. Generex also supplies kits to process bone marrow aspirates and platelet rich plasma biologics at the time of surgery.

 

Conclusion

Generex Biotechnology share price has been continually rising as the company is positioning for several major achievements in 2019 and beyond. There are risks associated with all drug development, but navigating any drug through the challenging FDA approval, can create remarkably high valuations and share prices. Generex offers the additional advantage of diversification of potentially large revenues from several different profit centers other than drug development. Generex Biotechnology is showing early signs of very strong revenue reversal and of being the new rising star of biotech. Generex warrants a close look and early positioning before revenues and developments advance further. An interesting note is that small investors have the advantage of being able to purchase shares now while larger institutional investors typically cannot buy any shares that are under $5.00.

 

Legal Disclaimer:

Except for the historical information presented herein, matters discussed in this release contain forward-looking statements that are subject to certain risks and uncertainties that could cause actual results to differ materially from any future results, performance or achievements expressed or implied by such statements. Emerging MicroCaps or BioResearchAlert or its principals may have been compensated for its services in the form of cash-based compensation. The Information contains forward-looking statements, i.e. statements or discussions that constitute predictions, expectations, beliefs, plans, estimates, or projections as indicated by such words as ''expects,'' ''will,'' ''anticipates,'' and ''estimates''; therefore, you should proceed with extreme caution in relying upon such statements and conduct a full investigation of the Information and the Profiled Issuer as well as any such forward-looking statements.

 

Cautionary Note Regarding Forward-Looking Statements

This release and oral statements made from time to time by Generex representatives in respect of the same subject matter may contain "forward-looking statements" within the meaning of the Private Securities Litigation Reform Act of 1995. These statements can be identified by introductory words such as "expects," "plan," "believes," "will," "achieve," "anticipate," "would," "should," "subject to" or words of similar meaning, and by the fact that they do not relate strictly to historical or current facts. Forward-looking statements frequently are used in discussing potential product applications, potential collaborations, product development activities, clinical studies, regulatory submissions and approvals, and similar operating matters. Many factors may cause actual results to differ from forward-looking statements, including inaccurate assumptions and a broad variety of risks and uncertainties, some of which are known and others of which are not. Known risks and uncertainties include those identified from time to time in the reports filed by Generex with the Securities and Exchange Commission, which should be considered together with any forward-looking statement. No forward-looking statement is a guarantee of future results or events, and one should avoid placing undue reliance on such statements. Generex undertakes no obligation to update publicly any forward-looking statements, whether as a result of new information, future events or otherwise. Generex claims the protection of the safe harbor for forward-looking statements that is contained in the Private Securities Litigation Reform Act.

Disclosure: I/we have no positions in any stocks mentioned, and no plans to initiate any positions within the next 72 hours.

 

SOURCE: Seeking Alpha

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