VRGD, GNTA, HLCS, MMAB, PEIX, OGXI
Our Stocks to Watch tomorrow include Veridigm Inc. (OTC: VRGD), Genta Inc. (OTCBB: GNTA), Helicos BioSciences Corp. (Nasdaq: HLCS), Municipal Mortgage & Equity LLC (OTC: MMAB), Pacific Ethanol Inc. (Nasdaq: PEIX) and OncoGenex Pharmaceuticals Inc. (Nasdaq: OGXI).

VERIDIGM INCORPORATED (OTC: VRGD)
"Up 131.25% on Monday"
Detailed
Quote: http://www.otcpicks.com/quotes/VRGD.php
Veridigm is an Anglo American investment company that provides merchant banking services to niche private and specific microcap public companies seeking debt and equity capital and/or to be part of a diversified, equitable, resource sharing, business combination. Specifically, the Company identifies specific private and public companies and assists them with managerial, accounting and financial advice and assists in refinance and / or raise adequate capital by introducing potential investors and lenders. The Company's policy is to calculate its voting capacity on a fully diluted basis. The Company at all times will conduct its activities in such a way that it will not be deemed an "investment company" subject to regulation under the 1940 Act.
VRGD
News:
January 5 -
Mobile Media Unlimited/Veridigm Shareholder Update
VRGD Returns 14% Common Shares to Treasury
Veridigm, Inc. (OTC: VRGD) announced the Board has initiated final preparations for Mobile Media Unlimited, Inc. to be traded as a public company. Veridigm, Inc. (DE) will be name changed to Mobile Media Unlimited Holdings, Inc. (DE) in due course.
The Veridigm Board of Directors and MMU Advisors welcomes incoming Chairman, Chief Executive Officer Anthony Sasso effective Jan 01 2009.
Veridigm President Gary Freeman stated: "We have gone to extraordinary lengths to ensure that the Veridigm entity is up to date in all areas of previously unpaid taxation and that Veridigm is in good standing. This arduous task was necessary for the caliber of MMU clients who require qualifying 'means tests,' as well as long overdue Veridigm housekeeping in preparation for Y/E 2008 consolidated auditing and re filing for OTC BB listing status. Simultaneously, MMU's investors garnered control of a 'to be named' secondary US public company which will be utilized for alternative MMU financed projects, proprietary database research and analysis tools, licensing & branding of applications to 3rd parties, joint ventures & other miscellaneous investments that do not immediately qualify as MMU/Veridigm core competencies."
Manny J. Shulman, managing partner of Shulman and Associates LLC who advises Mr. Sasso, MMU & Veridigm, commented: "We are now satisfied that the criteria and qualifications of Veridigm are habitable for the MMU deal. Veridigm has just effected common stock cancellations to its treasury of 40,111,000 or 14.6% shares of common stock. We have formally closed Veridigm's Regulation D 504 offering as of 12/31/08 and irrevocably cancelled all outstanding Reg D 504 exemption legal opinions, Blue Sky exemptions and previously issued 504 shares are no longer exempt from registration. The Company is reporting a not inconsequential & wholly unexplainable differential between its free trading common share count issued and outstanding as reported by CEDE & Co/DTCC and its common share NOBO/OBO count as reported by S&P as compared to its recent Transfer Agent ledger. We do not foresee an immediate resolution of this suspicious differential and we believe this differential may be responsible for VRGD's recent and extended price and volume volatility."
Mr. Shulman continued: "The Company's equity capital remains 510,000,000 shares authorized. 72% of 100% of the controlling VRGD super voting preferred shares are owned by MMU entities & Mr. Sasso. These preferred shares have no conversion ability to common under present restrictions. The remaining 8% of VRGD preferred shares are now owned by two institutional clients who have no ability to convert to common under present restrictions. For more information about MMU's unique business platform please visit www.mmusms.com."
NOTICE: To existing "odd lot" minority shareholders of Veridigm, Inc. common shares: pertaining only to shareholders owning less than a "round lot." These shareholders may receive a purchase proxy solicitation offer or similar solicitation in due course.
ABOUT MOBILE MEDIA UNLIMITED, INC.
MMU is a leader in mobile marketing technologies. Utilizing proprietary state-of-the-art marketing solutions and our unique ability to reach millions of new consumers simultaneously. Our SMS text messaging targeted E-mail delivery and specialized lead generation systems are without global peer. With our extensive international "OPT-IN" DATA inventory, MMU strives to stay ahead of the curve, giving our clients a seamless delivery solution and the highest quality of customer service. In addition we have successfully beta tested and are launching BLUE-TOOTH broadcasting. MMU can communicate with our target audiences via mobile phones, PDAs and automobiles equipped with BLUE-TOOTH devices. This form of advertising, as of yet, has not been fully exploited in the United States.
GENTA INCORPORATED (OTCBB: GNTA)
"Up 102.70% on Monday"
Detailed
Quote: http://www.otcpicks.com/quotes/GNTA.php
Genta Incorporated is a biopharmaceutical company with a diversified product portfolio that is focused on delivering innovative products for the treatment of patients with cancer. Two major programs anchor the Company’s research platform: DNA/RNA-based Medicines and Small Molecules. Genasense® (oblimersen sodium) Injection is the Company's lead compound from its DNA/RNA Medicines program. Genta is currently recruiting patients to the AGENDA Trial, a global Phase 3 trial of Genasense in patients with advanced melanoma. The leading drug in Genta’s Small Molecule program is Ganite® (gallium nitrate injection), which the Company is exclusively marketing in the U.S. for treatment of symptomatic patients with cancer related hypercalcemia that is resistant to hydration. The Company has developed G4544, an oral formulation of the active ingredient in Ganite, that has recently entered clinical trials as a potential treatment for diseases associated with accelerated bone loss. The Company is also developing tesetaxel, a novel, orally absorbed, semi-synthetic taxane that is in the same class of drugs as paclitaxel and docetaxel. Ganite and Genasense are available on a “named-patient” basis in countries outside the United States.
GNTA News:
January 5 -
Genta Summarizes Phase 2 Activity and Receives Orphan Drug Designation in Gastric Cancer for Tesetaxel, a Leading Oral Taxane in Clinical Development
Genta Incorporated (OTCBB: GNTA) announced that the Company has received notice from the U.S. Food and Drug Administration (FDA) that tesetaxel, the latest addition to Genta’s oncology product portfolio, has been granted designation as an “Orphan Drug” for treatment of patients with advanced gastric cancer. Orphan drug status provides for a period of marketing exclusivity, certain tax benefits, and an exemption from certain fees upon submission of a New Drug Application. As a late Phase 2 agent, the Company believes tesetaxel is the leading oral taxane currently in clinical development.
In the completed Phase 2 study, 35 patients with advanced gastric cancer were treated with tesetaxel at doses ranging from 27 to 35 mg/m2 once every three weeks. All patients had received extensive prior treatment, having failed a combination regimen that included cisplatin plus 5-fluorouracil or Xeloda®, and all but 2 patients had received a third chemotherapy drug with this regimen. Final intent-to-treat analysis, including all patients enrolled in the study, showed that 5 patients achieved a partial response, 2 patients achieved a partial response unconfirmed by CT scan, and 14 patients achieved stable disease, for an overall major response rate of 20% and a disease-control rate of 60%. The most serious adverse reaction was Grade 3-4 neutropenia, which occurred in 57% of patients. Six patients failed to complete the first course of treatment. Five patients died on study from differing causes that included intestinal perforation, pneumonia, hepatic failure, hemorrhagic shock, and rapid disease progression. One patient withdrew before receiving the first treatment dose.
“These response data for tesetaxel in a critically ill patient population show clinical activity at levels that are at least comparable to studies with other taxanes,” said Dr. Raymond P. Warrell, Jr., Genta’s Chief Executive Officer. “Based on these data, we have consulted extensively with international experts and will be defining a global registration path for tesetaxel as a 2nd-line treatment for patients with advanced gastric cancer. FDA designation as an Orphan Drug provides important assistance in the clinical development process.”
ABOUT TESETAXEL
Tesetaxel is a novel, orally absorbed, semi-synthetic taxane that is in the same class of drugs as paclitaxel and docetaxel. However, both prototype agents suffer from serious safety issues, particularly hypersensitivity reactions related to intravenous infusions that are occasionally fatal and that require careful premedication and observation. Other prominent side-effects of this drug class include myelosuppression (low blood counts) and peripheral neuropathy (disabling nerve damage).
With administration as an oral capsule, tesetaxel was developed to maintain the high antitumor activity of the taxane drug class while eliminating infusion reactions, reducing neuropathy, and increasing patient convenience. The oral route also enables development of novel schedules that may expand dosing options when tesetaxel is used alone or in combination with other anticancer drugs. Preclinically, tesetaxel has demonstrated substantially higher activity against cell lines that were resistant to paclitaxel and docetaxel, since acquired resistance is not mediated by the multidrug-resistant p-glycoprotein.
As a late Phase 2 oncology product, tesetaxel has demonstrated anticancer activity in its initial clinical trials, and the drug has not been associated with the severe infusion reactions that are linked with other taxanes. Moreover, unlike other oral taxanes, nerve damage has not been a prominent side effect of tesetaxel. Thus, the drug offers substantial opportunities to improve patient convenience, safety, and anticancer activity. More than 250 patients worldwide have been treated with oral tesetaxel in Phase 1 and Phase 2 clinical trials.
HELICOS BIOSCIENCES CORPORATION (NASDAQ: HLCS)
"Up 90.79% on Monday"
Detailed
Quote: http://www.otcpicks.com/quotes/HLCS.php
Helicos BioSciences is a life science company focused on innovative genetic analysis technologies for the research, drug discovery, and diagnostic markets. Helicos' proprietary True Single Molecule Sequencing (tSMS)(TM) technology allows direct measurement of billions of strands of DNA, enabling scientists to perform experiments and ask questions never before possible. Helicos is a recipient of the $1,000 genome grant and is committed to providing scientists the tools to unlock the era of genomic medicine. The company's corporate headquarters are located at One Kendall Square, Building 700, Cambridge, MA 02139, and its telephone number is (617) 264-1800.
HLCS News:
December 19 -
Helicos BioSciences Corporation Announces Pricing of Common Stock and Warrant Private Placement
Helicos BioSciences Corporation (Nasdaq: HLCS), a life science company focused on innovative genetic analysis technologies for the research, drug discovery, and diagnostic markets, announced that it has entered into a definitive agreement with certain investors to raise approximately $18.6 million in gross proceeds in a private placement through the sale of shares of its common stock and warrants. The Company estimates that net proceeds from the offering will be approximately $17.9 million, after deducting placement agent fees and estimated offering expenses, which Helicos intends to use for working capital and general corporate purposes. Helicos has entered into a securities purchase agreement with these investors pursuant to which it has agreed to sell a total of 42,753,869 units, each unit consisting of (i) one share of common stock and (ii) one warrant to purchase 0.6 shares of common stock at an exercise price of $0.45 per share, for a purchase price of $0.435 per unit (representing the closing bid price plus an additional amount for the warrants). Units will not be issued or certificated. The shares of common stock and warrants are immediately separable and will be issued separately. The warrants will have a five year term and will be exercisable immediately following the closing of the transaction. The closing of the transaction is expected to occur on or about December 23, 2008, subject to the satisfaction of customary closing conditions. Leerink Swann LLC acted as exclusive placement agent for the offering. The financing was provided by certain institutional investors and certain of the Company’s current investors, which include: Flagship Ventures, Atlas Venture, Highland Capital, and Versant Ventures.
The units to be issued in the private placement have not been registered under the Securities Act of 1933, as amended (the "Securities Act"), or any state securities laws and may not be offered or sold in the United States absent registration with the Securities and Exchange Commission ("SEC") or an applicable exemption from the registration requirements of the Securities Act. The units were offered and are being sold only to a limited number of accredited investors. Helicos has agreed to file a registration statement with the SEC covering the resale of the common stock issued in the private placement and the common stock issuable upon exercise of the warrants issued in the private placement.
MUNICIPAL MORTGAGE & EQUITY LLC (OTC: MMAB)
"Up 30.95% on Monday"
Detailed
Quote: http://www.otcpicks.com/quotes/MMAB.php
Municipal Mortgage & Equity LLC ("MuniMae") and its subsidiaries arrange debt and equity financing for developers and owners of real estate and clean energy projects. Assets under management as of September 30, 2008 exceeded $20.4 billion including investments in over 3,000 properties, containing about 328,000 units in 49 states, the District of Columbia, Puerto Rico and the U.S. Virgin Islands. MuniMae is organized as a limited liability company, which allows it to combine the limited liability, governance and management characteristics of a corporation with the pass-through tax features of a partnership. MuniMae also conducts activities through wholly owned taxable corporate subsidiaries.
MMAB News:
December 22 -
MuniMae Announces Sale of Agency Business
Provides Update on Third Quarter 2008 Production Numbers, Restatement, and Other Business Initiatives
Municipal Mortgage & Equity, LLC (OTC: MMAB) ("MuniMae" or "the Company") announced the sale of its Agency lending operations. It also announced its third quarter 2008 production numbers and provided an update on various business initiatives and the anticipated completion of the restatement of its 2004 and 2005 financial statements and its 2006 financial statements.
Sale of Agency Business
MuniMae announced today an agreement to sell its Agency loan operations to Oak Grove Commercial Mortgage, LLC, a newly formed subsidiary of Mud Duck Equities LLC. The two part transaction consists of a $10 million bridge loan from Oak Grove, accompanied by an Acquisition Agreement pursuant to which Oak Grove will acquire the business. Upon closing of the sale, MuniMae will receive $23.5 million in a combination of cash and forgiveness of the loan and, in addition, will receive two series of dividend paying preferred interests in Oak Grove having a combined principal amount of $47 million (subject to reduction of a portion of the preferred interests under some circumstances). MuniMae’s Agency business consists of the underwriting and origination of affordable housing and market rate multifamily apartment project loans that are sold to or insured or guaranteed by the government-sponsored enterprises Fannie Mae, Freddie Mac and government agencies HUD/FHA. MuniMae originates and, in most cases, sells the loans to these agencies, and remains engaged as the loan servicer, for which MuniMae is paid a servicing fee.
The loan from Oak Grove was funded on December 18, 2008. Completion of the sale transaction is subject to a number of conditions, including approval by the government-sponsored agencies to which MuniMae sells, or which insure the loans it originates in this aspect of its business.
Total MuniMae Agency loan originations in the first three quarters of 2008 were $875 million up from $625 million in the same period in 2007.
Michael F. Falcone, Chief Executive Officer stated, “This sale is an important transaction for MuniMae as it provides us with working capital in this difficult operating environment.”
Third Quarter 2008 Production
Third quarter 2008 production (debt and equity originations) was $349 million, compared to $754 million in the prior year period, due primarily to the impact of the ongoing disruption in the capital markets on our businesses and the Company’s decision to curtail business activities. Production in MMA Financial, the Company’s affordable housing business, included approximately $29 million in tax credit equity placements, compared to $81 million in the prior year period and $99 million of permanent loan originations, compared with $39 million in the prior year period. MMA Realty Capital production included approximately $120 million in agency originations and approximately $80 million in non-agency originations, compared to $152 million and $259 million, respectively, in the prior year period. Production in the Company’s MMA Renewable Ventures unit was $21 million, compared to $44 million in the 2007 period.
Mr. Falcone stated, “Our production numbers continue to reflect the extremely difficult operating environment. As a result of these conditions, we continue to restrict our business activities, conserve our resources and explore strategic alternatives.”
Consistent with its previous two quarters and the need to conserve capital, the Company will continue the suspension of its quarterly dividend for the third quarter of 2008.
Strategic Alternatives & Asset Sales
On June 26, 2008, MuniMae announced that it was engaged in evaluating strategic alternatives for the Company. In addition to today’s announcement of an agreement to sell the Agency business, the Company continues to be in discussions with potential buyers for other business units. There is no assurance that this process will result in any transactions.
MuniMae continues to be in regular contact with its lenders regarding its borrowings and credit support agreements. While the Company’s lenders have been cooperative, as previously announced, some lenders have been reluctant to formally waive various covenants in their agreements relating to the delivery of audited financial statements. The Company's failure to deliver these statements constitutes a default on several loan arrangements which could allow the affected lenders to call some of these loans.
As part of its broader business strategy moving forward, the company stated it will move away from non-core business operations. The Company announced it is exiting the advisory business, although its joint venture, International Housing Solutions, will continue to provide advisory services to institutional investors. In conjunction with exiting the advisory business, the Company delivered termination notices to certain of its advisory clients and was terminated by other advisory clients. The Company also intends to reduce its third party loan brokerage business, in particular, its California operations, which the Company does not view as being material to its business plan.
Mr. Falcone stated, “As long as the capital markets remain constrained, we will not pursue the continuation of marginal businesses. Our primary focus will be capital conservation and liquidity until a more normal market begins to emerge, which may be quite some time.”
Update on Restatement
The Company believes it is close to completing and releasing its audited consolidated financial statements of MuniMae and subsidiaries, including consolidated balance sheets as of December 31, 2006 and 2005, and the related consolidated statement of operations, comprehensive income, shareholders’ equity and cash flows for each of the years in the three-year period ended December 31, 2006. These financial statements include the impact of the Company’s restatement for the years ended December 2005 and 2004 as well as the cumulative impact on shareholder equity through December 31, 2005. As part of the ongoing financial statement preparation and accounting processes, the Company is implementing significant changes in its business and accounting practices and policies. The Company also announced that it is now current in its financial reporting as it relates to its more significant wholly owned subsidiaries, including MuniMae TE Bond Subsidiary, LLC and its MMA Mortgage Investment Corporation.
PACIFIC ETHANOL INCORPORATED (NASDAQ: PEIX)
"Up 23.40% on Monday"
Detailed
Quote: http://www.otcpicks.com/quotes/PEIX.php
Pacific Ethanol is the largest West Coast-based marketer and producer of ethanol. Pacific Ethanol has ethanol plants in Madera, California; Boardman, Oregon; and Burley, Idaho and has an additional plant under construction in Stockton, California. Pacific Ethanol also owns a 42% interest in Front Range Energy, LLC which owns an ethanol plant in Windsor, Colorado. Central to Pacific Ethanol's growth strategy is its destination business model, whereby each respective ethanol plant achieves lower process and transportation costs by servicing local markets for both fuel and feed. Pacific Ethanol's goal is to achieve 220 million gallons per year of ethanol production capacity in 2008 and to increase total production capacity to 420 million gallons per year in 2010. In addition, Pacific Ethanol is working to identify and develop other renewable fuel technologies, such as cellulose-based ethanol production and bio-diesel.
PEIX News:
November 17 -
Pacific Ethanol, Inc. Announces Adjustment to Its Third Quarter 2008 Financial Results
Pacific Ethanol, Inc. (Nasdaq: PEIX), the leading West Coast-based marketer and producer of ethanol, announced an adjustment to its previously reported financial results for the quarter ended September 30, 2008.
The Company previously reported a non-cash asset impairment charge of $26.6 million related to its suspended Imperial Valley ethanol plant construction project, which represented $43.8 million in property and equipment less $17.2 million in construction-related liabilities. The Company increased its impairment charge by $14.3 million to a total of $40.9 million. The increase represents impairment on the gross amount of $43.8 million in property and equipment less estimated future undiscounted cash flows. This increase will result in future non-cash gains to the extent the Company is discharged from its construction-related liabilities.
The Company's independent registered public accounting firm has completed its review of the Company's financial statements for the period and the Company expects to file its Form 10-Q for the period on November 17, 2008.
ONCOGENEX PHARMA INCORPORATED (NASDAQ: OGXI)
"Up 22.29% on Monday"
Detailed
Quote: http://www.otcpicks.com/quotes/OGXI.php
OncoGenex Pharmaceuticals is a biopharmaceutical company committed to the development and commercialization of new cancer therapies that address unmet needs in the treatment of cancer. OncoGenex has a deep oncology pipeline, with each product candidate having a distinct mechanism of action and representing a unique opportunity for cancer drug development. OGX-011, the lead candidate currently completing five Phase 2 clinical studies in prostate, lung and breast cancers, is designed to inhibit the production of specific proteins associated with treatment resistance; OGX-427 and SN2310 are in Phase 1 clinical development; and CSP9222 and OGX-225 are currently in pre-clinical development.
OGXI News:
December 3 -
OGX-011 Shows Overall Survival Advantage in Prostate Cancer Compared to Standard Therapy in a Randomized Phase 2 Study
* First-line trial currently shows median overall survival of 27.5 months for OGX-011 in combination with docetaxel and prednisone and a 16.9 months overall survival for docetaxel and prednisone alone.
* Achievement of survival benefit milestone results in release of all remaining escrowed shares of OGXI.
OncoGenex Pharmaceuticals, Inc. (Nasdaq: OGXI) announced positive survival results from a randomized Phase 2 clinical trial of OGX-011 in combination with docetaxel and prednisone ("the OGX-011 arm") compared to docetaxel and prednisone alone ("the control arm") for first-line treatment of metastatic castrate resistant prostate cancer. The current 10.6 month median overall survival advantage observed in the OGX-011 arm represents an increase over the median survival observed in the control arm. Docetaxel was approved by the FDA based on a survival advantage of 2.4 months over mitoxantrone.
Based on the median overall survival advantage, the Board of Directors of OncoGenex Pharmaceuticals has approved the release of all of the remaining shares held in escrow pursuant to agreements related to Sonus Pharmaceuticals' merger with OncoGenex Technologies described in its Proxy Statement filed with the SEC on July 3, 2008. The escrow agreements provided for the release of 50% of the original number of shares held in escrow following the demonstration of at least a two-month improvement in survival in the OGX-011 arm as compared to the control arm. All milestone shares have now been released from escrow; as of December 3, 2008 there are 5,513,643 shares outstanding.
The trial was conducted and data were analyzed by the National Cancer Institute of Canada, Clinical Trials Group and was supported by a grant from the NCI-Canada with funding from the Canadian Cancer Society. Previous results regarding the primary endpoint analysis (PSA response) were presented at the Annual Meeting of the American Society of Clinical Oncology (ASCO) on June 2, 2007.
The study randomized 82 patients with metastatic or locally recurring prostate cancer refractory to hormone therapy. The median survival was 27.5 months for the patients in the OGX-011 arm and 16.9 months for those in the control arm. Results currently indicate that patients in the OGX-011 arm have a death rate approximately 40% lower than patients in the control arm. The current results are based on study data with a median follow-up of approximately 30 months for both arms. Additional survival updates are needed before a mature median survival for the OGX-011 arm can be reported. Based on the current results, OncoGenex has calculated that the final median survival for patients in the OGX-011 arm can not be lower than 22.7 months.
An abstract presenting the mature results is planned to be submitted to the American Society of Clinical Oncology (ASCO) meeting.
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