Morons

Mannkind and the Warrants of Blood (MNKD)

Poor Mannkind (MNKD). The lamest endocrinology company in existence just did a deal so awful it rivals the infamous Repros 99.6% Discounted Warrant deal from 2011. Read about that stinker here.

Tonight, the 9th of May 2016, with the shares closing at $1.32, the morons at Mannkind announced a unit offering at $1.03 per unit. Says the company:

Each share of common stock is being sold together with a warrant to purchase 0.75 of a share of common stock (A Warrants) and a warrant to purchase 0.25 of a share of common stock (B Warrants) for a combined purchase price of $1.03. Each unit consists of one share of common stock. 3/4 of a Series A warrant, and 1/4 of a Series B warrant.

Both warrants are struck at $1.50

The Series A warrants expire in 2 years, and have typical American-style exercise rules. The Series B warrants expire in December 2018. The B warrants have a variation of a European-style exercise rule.

So what is this prize package worth to the buyers?

A share of stock is worth $1.32 at last close.

The Series A Warrants are worth, according to Bloomberg:

MNKD-SeriesA

$0.93 each, and 0.75 x 93c = 69.75c

The Series B Warrants are worth, according to Bloomberg:

MNKD-SeriesB

$1.03 each, and 0.25 x 1.03 = 25.75c

Thus the entire package, sold to investors this evening at $1.03 is actually worth:

1.32 (stock)

+.6975 (Series A Warrant)

+.2575 (Series B Warrant)

= $2.275

giving the lucky buyers an immediate paper profit of 120%, and giving existing MNKD bagholders incredible dilution.

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.
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Sandra Boenish, Vancouver’s Finest, CFO to the Stars – AVXL, NAKD, Lincoln Park

Today we quickly examine the sad state of retail favorite, but blindingly obvious bio-turd, lovingly referred to as Scamavex (AVXL). If one follows us on Twitter, (@buyersstrike) one would have seen warnings that Anavex Life Sciences (AVXL) is really just a plaything of Vancouver stock promoter Harvey Lalach. In fact, the common refrain is that “One can take the company out of Vancouver, but you can never take Vancouver out of the company.”

And in fact, the company did pick up and move, to shiny offices in New York City. And yet, the pull of Vancouver is strong. Just a few weeks ago Anavex announced the hiring of a new CFO. Sandra Boenisch. A quick read of the 8K filing announcing her arrival, and a look at her resume, leads to more questions than answers.

Take a look:

Ms. Boenisch, age 34, has no family relationship with any other officer or director of the Company. With respect to the Company, Ms. Boenisch has not had a direct or indirect material interest in any transaction described in Item 404(a) of Regulation S-K. In connection with Ms. Boenisch’s appointment as Principal Financial Officer, the Company and Ms. Boenisch entered into an employment agreement commencing on October 1, 2015 and ending on September 30, 2017, whereby: (a) the Company shall pay to Ms. Boenisch an annual base salary of Seventy-Eight Thousand and 00/100 Canadian Dollars ($78,000 CAD)

A CFO capable of handing the workload of a ~380mm USD market cap biotech (at time of writing) that supposedly has the cure for Alzheimer’s Disease and Parkinson’s Disease (if the dumb donkey longs and touts are to be believed) can be hired for just $78,000 CAD per year salary (roughly $59,500 USD at time of writing)? Really?

Why is a supposedly American biotech company, based in NYC, paying its newly minted superstar CFO in Canadian dollars? Perhaps we need to take a look at her resume. Here is the resume portion of the 8k:

Ms. Boenisch has been an independent consultant, providing financial reporting services to a range of public companies in the United States and Canada since January 2012. From 2008 until 2012, Ms. Boenisch was employed at BDO Canada LLP (Vancouver, BC) where she was hired as a Senior Accountant and was later promoted to Manager, Audit Assurance. Ms. Boenisch specialized in managing assurance engagements for public companies in the United States and Canada. Prior to that, Ms. Boenisch worked for a public accounting firm beginning in 2001.

Well there is our Vancouver connection, but she has no experience as a CFO, and none in biotech. And what did she do between January 2012 and getting this amazing job at revolutionary, world-changing, Anavex? The 8K says she was an independent consultant. However her LinkedIn page says something very different.

Naked?

That’s not what the 8K filing says, now is it?

It turns out she does have some experience in the past with a public company, Naked Brand Group, Inc is actually publicly traded Naked Brands (NAKD). Insert your own jokes about Anavex’s head of Business Development and Investor Relations, Nell Rebowe, here.

Sure enough, just like Anavex, Naked Brands started life as a Nevada shell company, in this case a little piece of junk called “SearchByHeadlines.com” (SBHL) which obtained a listing in 2007. The Headlines shell then acquired a dismal little underwear company called Naked Boxer Brief Clothing, Inc. creating yet another wretched reverse merger polluting the lower reaches of Wall Street (& Howe Street) NAKD.

Sandra joined NAKD a year later, in May 2013 as VP of Finance.

But being a piece of junk Canadian company merged into a Nevada shell, and hiring Sandra Boenish, are not the only things AVXL and NAKD have in common. There’s more.

In September of 2013, NAKD announced with great fanfare an investment from an institutional investor. Retail longs seem incapable of understanding that difference between a legitimate long term institutional investor, and what could kindly be described as the newest incarnation of 90s death-spiral shops. Here is a chart of NAKD’s share price from the date of that investment, 16 September 2013 until today.

Share price from 16 Sept 2013 until present.

Share price from 16 Sept 2013 until present.

Pretty impressive performance. The investor? Why none other than AVXL’s recently announced institutional investor, the sharks at Lincoln Park Capital. Read more about Lincoln Park here.

And take a look at the most recent press release from Anavex, trumpting an abstract of what we will charitably call a “study”, that is no more than a small collection of completely uncontrolled, unblinded, anecdotes about their snake oil Anavex 2-73. The important bit is at the bottom:

Shareholder & Media Relations
Toll-free: 1-866-505-2895
Outside North America: +1 (416) 489-0092

A 416 (Ontario) area code for a NYC-based, Nevada corporation, with a CFO in Vancouver? Odd, right? A quick search of that number leads to a stock promotion outfit in Toronto, Primoris Group, a firm with 2 co-founders who are no strangers to the seedy world of micro-crap Canadian stock message boards.

Maybe we’ll tear apart Anavex‘s ridiculous “study” claims over the weekend. Until then, lets see how the dynamic CFO and IR due of Sandra and Nell do, especially with their Toronto stock pumping friends.

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 Few Words on Scamceutix – CTIX

If you haven’t been following the saga of sister companies Nanoviricides (NNVC), Cellceutix (CTIX) and Nanoantibiotics (NNAB) you have missed a fun few weeks. (Some background on Nanoviricides is here, read Duff McDonald‘s great piece in the New York Observer here and a fun blurb on NNAB at Barrons here).

Last week Mako Research published a devastating expose of Cellceutix on Seeking Alpha, read it here. Then, on Friday of last week the company issued a bizarre attempt at a rebuttal, aping the language of retail bagholders referring to Mako as a “Shorter”. Here is the full text of CTIX’s bizarre rant. Then on Monday of this week, the company issued yet more insane ramblings, here.

One of the many valid criticisms of CTIX is that the company historically claimed founder and President Krishna Menon received his PhD at Harvard. There are even signed financial statements submitted to the SEC containing such claims. Of course, to those who bothered to do simple background checks it was obvious this claim was a lie.

Scamceutix however, in Monday’s missive tries to explain it away as a mere “administrative error”. Says the company:

There was an administrative error stating that Dr. Menon earned his PhD from Harvard, when the fact is that Dr. Menon worked as a research scientist at Dana-Farber Cancer Institute. This error was corrected years ago.

Then how does the company explain away the fact that sister scam, Nanoviricides, claims Menon, their Chief Regulatory Officer, also got his PhD from Harvard?

https://web.archive.org/web/20070703033710/http://www.nanoviricides.com/menon.html

“Administrative” Error Or Pattern Of Fraud?

And although CTIX claims the supposed error was “corrected” that is another lie. The company has not issued amended filings to correct the “administrative error”.

Extra credit assignment: Read this piece revealing the many lies of CTIX founder and President, and NNVC Chief Regulatory Officer Krishna Menon, here.

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 press release, and another set of lies from Galena Biopharma – GALE

After the close on the 6th of August scandal plagued Galena Biopharma (GALE) issued a press release detailing their earnings (or lack thereof) for the second quarter of 2015.

The full release is available here.

And in typical Galena fashion, even the very first bullet point is misleading. The company says:

Completed over-enrollment in the NeuVax Phase 3 PRESENT breast cancer immunotherapy clinical trial and presented encouraging data for GALE-301 and GALE-401 programs.

Of course, readers will remember that the GALE-401, aka Anagrelide CR, results were not encouraging at all. Not familiar with Galena’s spin on the terrible trial results? Catch up here.

Today we’ll focus on the second bullet point, where Galena makes an easily disproved claim. The company says:

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Script Data, Part 4 – A Tale of Two Drugs, Continued. – MNKD, SNY

An update in our ongoing examination of the performance of two recent drug launches from Sanofi (SNY). One is Toujeo, an injectable. The other is Mannkind‘s (MNKD) much hyped, beloved by retail investors, inhaled insulin Afrezza. These two drugs are both for the treatment of diabetes. Sanofi uses the same salesforce, who would be detailing the exact same doctors for both drugs. Can you spot the commercial flop? Remember folks, we are looking for “up and to the right”, we don’t want to see the patient flatlining.

Spot the dismal, pathetic, failure.

Spot the dismal, pathetic, failure.

Can Jefferies’ resident Mannkind moron Shaunak Deepak? Just for fun we’ve extended out the Afrezza data for the full 23 weeks it has been on the market. Toujeo has only been on the market for four months as of the last sales update.

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.

What makes Neuralstem so incredible? (CUR)

If you have been following @buyersstrike on Twitter, you might see the occasional tweet about Neuralstem (CUR). Over here at BuyersStrike! HQ we find Neuralstem to be absolutely incredible. It takes a lot to stand above the crowd in the current world of bio-dreck mania. So, what makes this 2006 direct to the OTC-BB company so fascinating?

Well, the thing that makes this company so incredibly amazing (if they can successfully patent and commercialize) could make the company worth more than Apple, Tesla, Google, combined! Yes, more than all of them. Intrigued? Read on….

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Galena Gets Smacked Down Again, Hard. – GALE

To add to its mounting legal woes, the pathetic tools inept fools at Galena Biopharma (GALE) were smacked down yet again by Judge Michael H. Simon in US District Court.

The fentanyl pushing, stock promoting, scum at Galena have been attempting to quash a lawsuit brought by shareholders who, quite rightly, are demanding answers and accountability from the company for the DreamTeam stock promotion scandal. Readers might remember our attempted site visit to DreamTeam HQ. This scandal has already cost Galena CEO Mark Ahn his job.

Thankfully, Judge Simon has seen through Galena’s latest attempt to stall discovery, and the lawsuit will move forward.

The following is the full text of the most recent decision:

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