September 17, 2021 7:46pm
When one sees an inextricable wrong and morally repulsive scenario; it takes courage, resolve and patience to stay the course of asking the questions without response!
Being able to trade a stock doesn't mean it is worth the share price; an equity that has WHAT is BSTG’s value proposition, after all the share price pumping there is NO clinical trial initiation after a year and a half (1.5 years)? <read more)
A new Foshan, China based non-healthcare board director added - Jerry He, another private placement of non-registered shares, more warrant executions from past private placements increased outstanding share exponentially as runway expands only until Q4/21
WHAT happened to the usual “pump/promote”, Friday (9/17/21) 129 shares traded dropping the share price -$0.38 after Thursday closed -$0.04 with 14,641 shares traded after Wednesday opened down -$0.04 (404 shares traded) and then promptly jumped +$0.52 with 17,107 shares traded after Tuesday closed down -$0.27 to $3.56 with 6,551 shares traded following Monday’s +$0.04 to $3.83 with 26,150 shares traded,
The previous Friday (9/10/21) closed down -$0.19 to $3.79 with 22,124 shares traded after Thursday traded up +$0.66 to $3.98 with 6,0622 shares traded, Wednesday traded +$0.57 with 7,833 shares traded after last Tuesday closing down -$0.75 to $2.75 with 6,705 shares traded.
Recent financing: On September 1, 2021, Biostage, entered into Securities Purchase Agreements with one of its existing shareholders, DST Capital LLC (“DST”), and An Zhang (together with DST, the “Investors”) pursuant to which the Investors agreed to purchase in a private placement an aggregate of 1,000,000 shares of common stock and warrants to purchase 500,000 shares of common stock (the “Warrants”) for the aggregate purchase price of $2,000,000 and a purchase price per share and half warrant of $2.00 (the “Private Placement”). The Private Placement closed on September 1, 2021.
- What was the pricing of the recent Private Placement, the previous one was $4.71?
- Funny, how they didn’t DISCLOSE?
Questions to consider:
Today is just another fact set, how the share trades without the “push/promote” - another typical example?
WHO were the auditors for this Q2/21 8-K and 10-Q or are these unaudited filings?
WHY the failure to respond to legal proceedings of a terminal death suit against the company that initiated sanctions against it?
If there ever is to be a clinical trial, WHY hasn’t a CRO been hired, there is a huge amount of pre-planning to be done but, that person has quit the company - months ago?
Where did the management oversight FAIL? Quote from 10-Q …
- “On October 1, 2019, the Court entered an order granting plaintiffs’ motion to compel the defendants to produce discovery.”
- “Subsequently, the plaintiff filed a motion for sanctions against the Company on January 6, 2020 claiming failure to produce the required discovery.”
- “The Company’s counsel at the time, which had been selected for the case by its liability insurance carrier, never notified the Company of plaintiffs’ motion and never responded to plaintiff’ motion.
WHO is steering this company …?
- “As a result of the failure of the Company’s (BSTG) former counsel to respond, on January 29, 2020, the Court entered an order allowing plaintiffs’ sanctions against the Company and the other defendants, which … establishes a sanction of admitted liability.”
Does the SEC [Securities and Exchange Commission] have a term for this – could it be said, it’s an affinity fraud?
Affinity scams often involve “Ponzi” or pyramid schemes where new investor money is used to pay earlier investors, making it appear as if the investment is successful and legitimate - laws read so?
WHAT is BSTG’s value proposition, after all the share price pumping and there is NO clinical trial?
Three (3) maybe four (4) employees in a 17,000 square foot lab/office suite?
WHAT is the end game of “pumping” the share price?
Do investors KNOW WHO is BUYING the shares, certainly that have been bought and accumulated since last week?
Is a REVERSE in order and a possible SALE of the public listing shell?
The float is MINIMAL compared to the ever-increasing RESTRICTED (from sale) OUTSTANDING shares?
WHERE is the SEC and Nasdaq concerning the “listing”?
More Questions NOT answered:
What’s behind the “pump and promote”; BSTG is basically a “shell” company with NO runway?
A filed IND with NO clinical trial initiation after a year and six (6) months old– WHY NO clinical trial initiation?
Their auditor (RSM US LLP) “walked” – WHY?
WHY the inclusion of this disclosure (from reading) in the 10-K, BSTG has “identified a material weakness … “in our internal control over financial reporting. Our ability to remediate this, our discovery of additional weaknesses and our ability to achieve and maintain effective control over financial reporting, could adversely affect our results of operations, our stock price and investor confidence in our company.”
A part-time financial officer, WHAT is he – number six (6) in four (4) years
An even more China based board of directors (BOD) majority?
What’s with the board of director and management's lack of clarity toward its aggressive outstanding share dilution?
Does it also put MORE fiduciary and transparency responsibility on board and audit committee members, Herman Sanchez and James Schmerling?
WHERE is continued funding coming from beyond Q4/21? BSTG had, an accumulated deficit of $69 million, an IND that was approved for clinical initiation which has YET to START and a civil lawsuit over a deceased individual caused by tracheal implants and has also to indemnify Harvard Bioscience?
WHAT is the status of the $1,000,000.00 “gift” to Connecticut Childrens (hospital) where the CEO, James Schmerling of this hospital is a board of director member and $429,500.00 is still OWED (that is NOT listed as a payable in FY20 and Q1 and Q2/21 financials by BSTG, when the company is all but broke?
Total liabilities: $487,000.00 – is this a TRUE number?
Total operating expenses: $918,000.00 in Q2/21
WHO are the auditors for this Q2/21 8-K and 10-Q or are these unaudited filings?
A failure to respond to legal proceedings of a terminal death suit against the company that initiated sanctions against it - WHY. ““As a result of the failure of the Company’s (BSTG) former counsel to respond, on January 29, 2020, the Court entered an order allowing plaintiffs’ sanctions against the Company and the other defendants, which establishes a sanction of admitted liability.”
A continued disclosure of ineffective financial controls and procedure
From the 10-Q, Clinical Initiatives:
BSTG believes “that receiving regulatory approval to treat pediatric esophageal atresia with our CEI may provide a shorter time to a commercial product and the greater overall potential value in the U.S. market. In addition to providing a novel solution for a great medical need, approval of our pediatric esophageal atresia product candidate may result in receipt of a priority review voucher, which if achieved, could potentially provide significant value and non-dilutive funding to Biostage in the future. BSTG has “continued to advance our CEI pediatric esophagus program and plan to file a protocol amendment with the FDA to update our CEI esophageal disease clinical program after the initial adult patients are treated in the esophageal disease trial, subject to FDA approval.”
According to the INITIAL filed IND, multiple (4-6) patients must be tested even before … ANY subsequent pediatric IND could EVER be submitted. The words from the above paragraph … do NOT confirm the FDA approved procedures of clinical initiatives which MUST be followed.
MINORITY PUBLIC shareholders are waiting for the specific time, watching and weighing responses to MAINTAIN their RIGHTS.