July 22, 2021 7:52pm

Six (6) questions …

First and foremost: Who and What’ are behind the “pump and promote”; a company with NO runway and NO clinical initiative post an IND that is a year and one-half (1.5) old? Could the share price stay up if it wasn’t being “pumped”?

Biostage (BSTG) closed Thursday flat with 200 shares traded after Wednesday’s +$0.01 with 200 shares traded, Tuesday’s flat at $1.70 with 49 shares traded after Monday’s +$0.01 to $1.71 with 307 shares traded.

Question#1: WHAT role is DST Capital “playing” in these on-going “volume-pumping” pricing “moves” – to exercise the remaining outstanding warrants to add even more unregistered shares to the “outstanding” shares?

Question#2: WHY the attrition rate of the past five (5) years: Three (3) accounting firms, two (2) CEOs, one (1) CMO who became president, one VP who became president, two (2) CFOs, three (3) interim CFOs with another rent-a CFO, three (3) controllers, a VP of Finance who left without notice and reappeared as a consultant, five (5) members of the board of directors of which four (4) were on the audit committee, three (3) other operating VPs and twenty (20) scientific employees.

Question#3: Has Beijing, China “spoken” as yet another accounting firm has been retained? On July 6, 2021, BSTG’s Audit Committee engaged Wei, Wei & Co., LLP (with offices in Queens, New York, Los Angeles, California, and Beijing, China) to serve as the independent registered public accounting firm contingent upon completion of Wei’s client acceptance procedures - which will probably be waived by its Beijing office? They are licensed to practice as certified public accountants in the states of New York, Connecticut, California, and New Jersey – what about Massachusetts?

Question#4: WHY hasn’t a notice from U.S. securities regulator concerning adopting measures that would kick foreign companies off American stock exchanges if they do not comply with U.S. auditing standards, and require them to disclose any governmental affiliations” been included in 10-K disclosures? The Holding Foreign Companies Accountable Act, signed into law by then President Trump last December, is aimed at removing Chinese companies from U.S. exchanges if they have failed to comply with American auditing standards for three (3) years in a row. The rules also require firms to prove to the SEC they are not owned or controlled by an entity of a foreign government and to name any board members who are Chinese Communist Party officials, the SEC said in a statement. The agency fast-tracked the rules around how companies should submit documentation because it was required to issue them within 90 days of the Act becoming law.

  • Three (3) directors of BSTG, Jason Jing Chen (chairman of BSTG’s board of directors), Ting Li (Donghai Securities Co., Ltd) and Wei Zhang, MD (Peking University) all reside in China – what are their affiliations?  Do I detect a disregard for US standards?

Question#5: What is the status of the PPP “loan” in the form of a promissory note with Bank of America, NA (Bank), which provided for a loan in the amount of $404,221 (PPP Loan) pursuant to the Paycheck Protection Program (PPP) of the Coronavirus Aid, Relief, and Economic Security Act (CARES Act) administered by the U.S. Small Business Administration (SBA)?

Question#6: What is the status of the $1 million dollar gift to Connecticut Childrens (hospital) led by its CEO James Schmerling (also a BSTG BOD member) who owns shares along with the hospital while a payment of $429,500.00 is still outstanding and NOT listed as a payable?


MINORITY PUBLIC shareholders are waiting for the specific time, watching and weighing responses to MAINTAIN their RIGHTS.


Opinions expressed are those of the author and are subject to change, and not intended to be a forecast of future events, a guarantee of future results, nor investment advice.

Whether information or intelligence is good, bad or somewhere in between; I put into context what is relevant and useful for investors.  All investments are subject to risks. Investors should consider investment objectives.

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Henry McCusker, the editor and publisher of RegMed Investors does not hold or have positions in securities referred to in this publication.