InNexus Biotechnology IXS.V

InNexus Biotechnology is a drug development company which is researching the next generation of monoclonal antibodies based on its Dynamic Cross Linking technology (DXL), which improves the potency of existing antibody products and create a different class of antibody based drugs.


The product they are developing enhance existing FDA approved drugs which make them more potent. I believe they are focusing on cancer treatments but the technology can be applied to any type of drug in its class.



Pros:

- “cash Payment to several executive officers was voluntarily suspended... in lieu of promissory notes” in my
opinion if these guys didn’t walk after not getting paid, then they must believe in the product.

- Sales agreement with Royalty Pharma for potential cash up to $30M upon completion of certain milestone. “As of
September 30, 2010, we believe certain of these milestones have been met.” This bodes well for upcoming news
releases pending everyone can come to an agreement.

$30M / 100M shares = $0.30 a share

- Senior management has ponied up around $1M of their own cash to repay loans.this also tells me that they
believe in their product.


- Pretty large volume the last two weeks, 2 - 4 million shares moves each day.

Cons:

- Like any other biotech research company, they are bleeding money.

- Will need to find alternative funding in the mid to near term to continue operation. (they seem to have a knack
for this though).


The word around the campfire is that the CEO has been contacted and it was confirmed that a news release will be out by the end of January (Monday). If all goes well the news will be good!

https://i.servimg.com/u/f37/15/97/36/04/ixsquo10.jpg


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A little late on the news release and not what I was expecting but here it is:

http://www.ixsbio.com/news/index/68

Nothing too positive here. talks about consolidating shares to attract investors. nothing material about the technology.

so maybe a 20:1, 30:1, 50:1 split? bummer.

But the CEO is at a networking biotech show today. hopefully he can pawn his wares on some investors.

Investment Industry Regulatory Organization of Canada - Trading Halt - InNexus Biotechnology Inc. - IXS

Reason for Halt: Pending Compliance with exchange requirements

Doesn't look too good :S

InNexus Bio Announces Annual General Meeting to Be Held 24 May 2011

They also announced the reason for the trading halt(3 days ago!)

they are "returning" 23 million shares that were issued for debt under $0.05 as it is against rules of the TSXV.

the only problem i see here is that they issued over 43 million shares under $0.05. what are they going to do with the remaining 20 million shares?

I am curious to see how this one trades when it starts again. I'm not sure if this is good news or bad?

I haven't looked into this at all, so I don't really know, but if they issued shares as collateral for debt and they are calling those shares back in, they would also have to either return the money from the loan or find a new form of collateral. So this may represent financing troubles and lead to a new share issuance to the public.

Still halted. I think this is what it looks like when a company goes under :S

I feel like this guy:



I think the investing term for a person like me in this play is "Bagholder".