posted
Posted by: knowlesmsncom Date:10/6/2006 3:22:25 PM Post #of 54334
Company\IR Update
Berg sure is a nice and responsive fellow......
He returned my call from late yesterday. For obvious reasons he was unable to give out a lot of pertinent information on the quarter but answered the following:
Construction: Slab has been pored but it is raining every day…lots of rain, I have posted weekly weather updates, currently it is monsoon season in Africa. As far as being on schedule he said…..yes they are. I asked about posting pictures on the web, he stated that they will be posting pictures in the future but right now it’s just a lot of turned up dirt and a slab.
My input on this: Anyone that is familiar with construction knows that getting the foundation pored is a slow process, especially in the rain. Once the walls start going up and the roof goes on it starts moving very rapidly.
Grant money: I congratulated Xechem on getting the Grant:
He was very elated about receiving the grant on 5-HMF for further studies. We discussed the possibilities of future and ongoing grant monies being available in time mutually concluding of a high probability of more grants down the road, but none were mentioned nor did I ask.
My input on this: Xechem is a research and development company any future grants would just speculation on anyone’s part but you can expect with high probability Xechem has made further applications.
SCDAA Conference in Dallas: I had asked Berg if he attended the SCD Convention in Dallas, he stated no. Kidding I said, “So you don’t get to go on dog and pony shows” (Open mouth and insert shoe store). He came back very quickly and clearly stating the importance of the convention and the audience served, stressing it’s importance and impact. We went on to discuss the response from the Doctors and Scientific professionals toward Nicosan during the conference and at the presentation at the booth. He pointed out that Xechem was invited to speak before a scientific community and it was not the forum to discuss anything else.
My input on this: Set all kidding aside…..they are dead on serious! As I have posted here the conference was not a place to boast quarterly numbers blowing whistles. It’s intention was to teach professionals in the medical community. Immediately while speaking to Berg the comments from aggieboy came clearly into play. Anyone who has attended such a conference knows these words “technical boredom”. Unless you are a lab rat your asleep in a matter of minutes and the room was mostly filled with lab rats.
Product\Production: Discussion in this area was guarded, i.e.: no definite production number could be given. He only spoke of information that you already know. He did clarify for me a couple of issues such as the medication are distributed on a monthly basis and that sales from satellite office have not occurred outside of the SHESTCO complex at this time. Plans to distribute through other areas and ways continue to be worked on. Again he stressed supply and demand assuring that they will not over sell leaving a customer stranded in any particular month stressing that production will remain low until the new facility is underway.
My input on this: Since the product is limited and works people who need Nicosan will come to you. There is no need to expend money or valuable resources unnecessarily at this time. This can help us gauge weather of not the product really works ie: “If the customer keeps coming back for more”. Future comments toward this can be focused on additions (ramp ups) and customer turnover (drop offs). Additionally common since will tell you that they are in phase III testing which means that anyone taking this medication will be questioned and blood tests conducted on an ongoing basis throughout the Phase III trial period.
Loans: Regarding this I only asked for clarification on how many….he said 2 are being worked on at this time. I asked about any more private loans….Berg stated strongly that Xechem plans are not to add further dilution, again stating the importance of the loans.
My input on this: I did not press the subject. I know Bergs answer as he has said in past conversations , he can’t and won’t give me what I am looking for, deal or no deal!..so I did not go there. Everyone needs to keep in mind that if the loan deals fall though there is a contingency plan, this is a company that will do anything to survive. And in my honest opinion, they will survive.
About the Quarter: Quarter release date is 45 days from the quarter end. In some cases plus five days that are allowed under the rules of SEC reporting. He did not state a delay nor did I ask. I did ask about streaming of telephone conferencing and he said there is no plans at this time to do so.
Government Pre-pay: No confirmations nor denials of a pre-pay further stating that the government is a process, slow as it may be, I concurred.
There were a few other off matters discussed but none of significance or relevance to Xechem.
As always he invited me to call anytime if I had any questions of comments I wished to discuss.
Hope this helps,
Knowles
-------------------- The difference between genius and stupidity is that genius has its limits Posts: 10204 | From: NYC | Registered: Mar 2006
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posted
Posted by: knowlesmsncom Date:10/7/2006 6:38:53 PM Post #of 54335
The question is "Whether to increase the number of Active shares or not". It is a difficult decision I would have to agree, so here is my best shot.
Money, have you ever set up a pro and con list? Well the biggest trouble with establishing the pro's or con's in any list is to get beyond the real issue and that issue here is dilution, not to forget it just go beyond it.
In our own lives we are faced with similar issues every day while remodeling, buying a new car or paying bills just on a much smaller scale. So we typically without thinking about it rob Peter to pay Paul. We sometimes take out a home equity loan, use a credit card or go into the savings account. In other word we use existing assets like a paycheck, savings, credit and collateral to secure and obtain more debt. Without ready assets or money you will go nowhere or do without.
Running a Corporation is not much different than running a household just on a much larger scale and with greater responsibilities. In past Xechem was faced with many huge barriers in getting their products to market and getting through those barriers take money a lot of it. You must know and should realize what the average time and cost are for getting one product to market and what occurs along the way?
“2.3 Federal Drug Administration Approval Process
Federal Drug Administration (FDA) approval usually requires 10 to 12 years of development and 100 - 500 million dollars in development costs. The FDA approval period is split between the clinical trials and New Drug Application (NDA) approval. During the clinical trials, the FDA uses test populations to study safety, dosage, pharmacologic and metabolic effects, potential side effects, and effectiveness of the product. The NDA process then comprehensively analyzes the preclinical and clinical reports, applying a risk-benefit analysis to determine if the product will benefit the public at large.”
Now in my view Xechem has curbed some of the high US approval costs significantly by working the product into a system outside the United States and FDA Approval process. This has occurred in an area that has the highest concentration of SCD and in a country with there own medication approval process. Not only has Nicosan been approved by that government, it has received ongoing support from that Government. Some may deem this as a conflict of interest but those who believe that do not realize that a huge amount of grant money in the USA comes from the US Federal government and taxpayers. Those grants directly fund colleges and research facilities to conduct studies here in the US, thus producing products like 5-HMF which is another Xechem product. Although another issue altogether and moving forward , all this process requires money $$$ and lots of it.
We can all agree that Xechem not made of money, is a struggling drug manufacturer on the verge of making a huge breakthrough attempting to start production, has limited funds to accomplish this task and bordering going bankrupt, so the question is what do? Many proposals have been laid onto the table. Some have said to approve some have said to disapprove adding any additional stock or causing further dilution.
Lets start with those who don’t wont the approvals to occur and see if some of the proposals make common or practical sense. Some of those proposed options are: stock buy back, bank loans\credit, dilution concerns, unequivocally no more stock increases with no solution or do nothing.
Stock buy back - In order to have a stock buy back you have to have money or capital. If we had the money to do that we would not be voting for additional shares.
Bank Loans\Credit – As mentioned in the preamble above, loans of any type require collateral and without collateral you have no loan and without a loan you have no money to produce a product, simple economics.
In Xechem’s case they have been loaned through several avenues by using stockholders\convertibles, bridge loans and\or through conventional bank loans using assets on hand that were accumulated over time. Good or bad all methods of lending required collateral and the assets on hand avenue is all tapped out leaving investors.
Dilution concern – by approving addition shares there is the risk of dilution and everyone knows what occurs thereafter. For any stockholder this is a truly valid concern that neither proponents for or against would like to occur. Do note that requesting additional shares does not automatically mean that further dilution will occur.
Unequivocally no increase – the company would run out of money and ultimately collapse, a recipe for instant failure.
Do nothing – again the company would run out of money and ultimately collapse. Believe it when I say there are a number of people here that would very much like for this to occur and are paid in their attempts to do so. Some of those people may even reside here on this thread and hide behind anonymity or you can find them in the general public while protesting wear hoods.
Those for approving additional stocks have expressed their concerns some of which are also contained herein:
The proposed option that has been laid out before and by Xechem to go forward or succeed is to obtain a non-diluted bank loan. In order to do so they have to come up with some type of method and solution that would be attractive to a major lender. With no ready assets available for a lender to actually secure or provide to obtain a loan, Xechem had only one plausible solution to offer. The only available option was to provide the security that the Banks require by increasing the available shares. I believe that it has been suggested that Xechem use the shareholders as equity in order to collateralize a loan. In the event of failure or default the shareholders and\or further dilution will be used as back up. My opinion on this is that as production increases and time progresses the risk of dilution will lesson.
Actual investors realize that there are no guarantees in lending their monies to companies through purchasing stocks. Therefore investors do massive amounts of research in the companies and the products which is known as due diligence. We each have an opportunity, obligation and a right to express our expectations or concerns to the Company through various methods of verbal, written and voting processes. Furthermore, if we do not like the direction, circumstances or outcome we can just sell and go elsewhere.
Money66 I have offered my best attempt to show or parallel a living reality that has brought forth the reasons and need for additional shares. There is no investor here that would like to see further dilution occur but this method of loan security is a necessary evil. By denying the additional shares it is my belief that Xechem will not be able to secure a loan in order to obtain that loan.
I hope I have been of help. You will have to follow your own instincts and judgments while making your decisions whether to approve or disapprove the addition shares. All the above information has been expressed though my options and beliefs. Your decisions should not be based solely on these or anyone else’s options.
Good luck in making yours,
Knowles
-------------------- The difference between genius and stupidity is that genius has its limits Posts: 10204 | From: NYC | Registered: Mar 2006
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This company needs money weather it gets it from stock or loans from a bank it still needs money to get it up and running and then for the expense of approval.
then in the future it may need more capital and that is were the 5billion a/s kicks in. That and a few other reasons . It may have a short term effecte on the pps but what a time to buy imho we will see this month after the vote
Posts: 6008 | From: phoenix az | Registered: Mar 2005
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Gates Discusses AIDS With Nigeria Leader By Associated Press 2:05 PM PDT, October 8, 2006
ABUJA, Nigeria -- Microsoft Corp. founder Bill Gates met President Olusegun Obasanjo this weekend for talks on fighting poverty and disease on the world's poorest continent, a senior official said Sunday.
Information Minister Frank Nweke said Gates arrived in Nigeria with his wife, Melinda, on Saturday and met with Obasanjo at his farm on the outskirts of the country's biggest city, Lagos.
"The visit is to hold a number of discussions on plans to manufacture cheap software in Nigeria, fight HIV/AIDS and alleviate poverty," Nweke said.
Gates' trip to Nigeria, Nweke said, was a follow-up on discussions the world's richest man had with Obasanjo at the last meeting of the World Economic Forum in Davos, Switzerland. Nweke gave no further details.
With an endowment of $31.9 billion, the Bill and Melinda Gates Foundation has granted more than $11 billion since its inception in 2000 to projects to help ease extreme poverty in more than 100 countries.
Forbes magazine ranks Gates as the world's richest man, worth an estimated $53 billion.
-------------------- The difference between genius and stupidity is that genius has its limits Posts: 10204 | From: NYC | Registered: Mar 2006
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Gates Discusses AIDS With Nigeria Leader By Associated Press 2:05 PM PDT, October 8, 2006
ABUJA, Nigeria -- Microsoft Corp. founder Bill Gates met President Olusegun Obasanjo this weekend for talks on fighting poverty and disease on the world's poorest continent, a senior official said Sunday.
Information Minister Frank Nweke said Gates arrived in Nigeria with his wife, Melinda, on Saturday and met with Obasanjo at his farm on the outskirts of the country's biggest city, Lagos.
"The visit is to hold a number of discussions on plans to manufacture cheap software in Nigeria, fight HIV/AIDS and alleviate poverty," Nweke said.
Gates' trip to Nigeria, Nweke said, was a follow-up on discussions the world's richest man had with Obasanjo at the last meeting of the World Economic Forum in Davos, Switzerland. Nweke gave no further details.
With an endowment of $31.9 billion, the Bill and Melinda Gates Foundation has granted more than $11 billion since its inception in 2000 to projects to help ease extreme poverty in more than 100 countries.
Forbes magazine ranks Gates as the world's richest man, worth an estimated $53 billion.
i am pretty sure than the President Obasanjo and Bill talk about the recent launch of NICOSAN no doubt. DEMAND is bigger than SUPPLY come on BILL do something
posted
My only thought hitman is I keep a position in this because I really believe it will be something great one day,
Who k nows when it will run? I don't think of this stock short term like i used to.
Bank loans things seem to point in a different direction now one of the reasons they want an increase to 5 billion a/s . They inho will look into a smaller loan and go fore a grant or backing from a different source.
Posts: 6008 | From: phoenix az | Registered: Mar 2005
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posted
this is a long play . stock should go up over a dollar beginning of next yr .
Posts: 417 | From: grand cayman | Registered: May 2006
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From: Googleaire - view profile Date: Tues, Oct 10 2006 12:11 pm Email: "Googleaire" <4alli...*optonline.net> Not yet rated Rating: show options Reply | Reply to Author | Forward | Print | Individual Message | Report Abuse | Find messages by this author
Max: do you think that XKEM was heavily shorted on the run up to .11??
By 'heavily shorted' if you mean in the neighborhood of 2Billion shares then 'yes'. The question now is have the 'shorts' FULLY covered? No
Anticipate one more 'short cover' rally before the 5B A/S meeting then the .02+- to .03+- trading range continues until the next phase of the 'Trading Plan' continues.
First the 5B A/S of new stock [actually 3B] will used as collateral to secure the loans [so nothing big happens until then].
2nd The public market for stock provides the exit strategy and liquidity to the insiders and the Market-Makers that initiated the trading plan. There are over 500 member firms that act as NASDAQ Market-Makers and just as 'most' companies have a business plan they have a 'Trading Plan' when the A/S is being increased.
One of the most important benefits of a 'public offering' is the fact that the company's stock eventually becomes liquid, offering rewards and financial freedom for the founders, employees AND FAST ACTING TRADERS WHO RECOGNIZE THE OPPORTUNITY.
With the accurate use of press releases, interviews or news stories and released in a 'timely' manner they are designed to encourage and increase investor/Main St Awareness, create shareholder value [lol, that ones funny] and demand for the stock. A well orchestrated ad campaign coupled with media initiatives has the potential to increase volume making dilution the final step. Let's take a look at the XKEM YTD Media Campaign in progress;
* October 4, 2006 o Xechem Receives $473,181 SBIR Grant to Conduct Toxicity Studies of 5-HMF Compound * September 12, 2006 o Xechem Chairman, Dr. Ramesh Pandey, to Present NICOSAN at 34th Annual SCDAA Conference * August 29, 2006 o Xechem Chairman Responds to Shareholder Questions Regarding NICOSAN * July 26, 2006 o Demand for New Sickle Cell Drug NICOSAN Far Exceeds Supply * July 11, 2006 o Nigerian President Olusegun Obasanjo Launches Xechem's Sickle Cell Drug, NICOSAN * July 5, 2006 o Xechem Receives Approval For Sale Of NICOSAN From Nigerian Regulatory Authorities - NAFDAC * June 6, 2006 o Xechem Receives Orphan Drug Designation From The FDA For Its Anti-Sickling Drug 5-HMF * June 1, 2006 o Xechem Pharmaceuticals Nigeria - Receives $1.2 million dollar loan from NEXIM Bank * April 17, 2006 o Xechem files Orphan Drug Application with the FDA for the anti-sickling compound. * January 25, 2006 o Xechem closes on $4.2 million lawsuit settlement with Bristol-Meyers
Three years ago; [Sept. 2, 2003--Xechem International, Inc. (OTC BB: XKEM) announced that it received Orphan Drug designation for NIPRISAN (HEMOXIN(TM)from the U.S. Food and Drug Administration] Keep that in mind because the BIG XKEM pps rally will revolve around 'that story' or something JUST AS unique and I anticipate that's coming soon; Q-4 or early in 2007.
Employees and officers have two ways to add to their wealth: by receiving a salary and selling stock. Ever since the Form Type: 8-K Filing Date: 9/25/2006 XKEM is getting crushed even with the $500K Grant PR. Hmmmmmm, SURE THAT WILL FRUSTRATE MAIN ST.
Let's look at the major players /MM's for XKEM [excluding the Hedge Funds];
NITE [KNIGHT EQUITY MARKETS, L.P] YTD trading in XKEM is 3,481,789,955 shares while the #2 MM is UBSS [UBS Securities LLC] 2,681,033,210 shares traded YTD but UBSS has backed off in XKEM trading activity substantially after July.
Keep an eye on UBSS after the 5B A/S is approved BECAUSE they and NITE will be working to liquidate any new shares that XKEM has scheduled for dilution.
NOTE; ETRD [E*TRADE CAPITAL MARKETS LL] is your #3 MM serving the momentum traders [912,049,803 XKEM shares traded YTD].
Next the Main St speculator needs to establish what the 'trading plan' is. With XKEM that's pretty easy. Look at the XKEM One-Year 'monthly chart' at Big Charts.com and you'll see that manipulation volume is done quarterly. As mentioned previously the 4th Quarter volume on the OTCBB is the most active because the Big Money Managers aka Hedge Funds are back in the game AND THEY KNOW WHATS ABOUT TO HAPPEN. It's no coincidence that the 5B A/S is coming in Q-4 folks.
For the near-term XKEM will be trading on low volume as the Shorts continue to capitalize while they continue to SQUEEZE Longs who paid over 5cents. Main St Longs are 85% fed up and closing out their positions and the fact is; this is when they need to be building their positions but sheep will be sheep.
Remember back in Q-3 XKEM traded $31,000,000.00 IN ONE DAY. Wait until the Q4 Hedge Funds get involved XKEM you'll see $100,000,000.00 and that's when you'll know its time to SELL. Again the build-up in Money Flow [and volume] up to that day will be based on NEWS i.e. FDA news weather it's good or bad or something almost as dramatic as the FDA.
The time frame for the new rally will be weeks/months [not a one-day pump 'n' dump plan] because there are additional variables with the XKEM story.
Did the Shorts make money? YOU BET THEY DID!!!
Can you make money? YOU BET YOU WILL!
Just is PATIENT!!!
Posts: 291 | From: NJ | Registered: Jun 2006
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posted
A friend of mine spoke to Steve today. The post is over on w w w . p e n n y h e l p e r . c o m on the XKEM board. It was about the construction.
Even as much as I am against the 5B increase I do see the plus side. If it flops a lot of inside campers will be using their certs for chit papper. If they do it right and keep shareholders abreast by providing some simple transparency and a decent IR department they could do well.
-------------------- All post are my opinion. Do your own DD. Who's clicking your buy/sell button!? Posts: 7800 | From: Virginia | Registered: May 2006
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posted
XKEM Press Release Source: Xechem International, Inc.
U.S. Ex-Im Bank has Approved Comprehensive Guarantee to Support $9.38 Million Loan from UPS Capital to Xechem Pharmaceuticals Nigeria Wednesday October 18, 12:46 pm ET
NEW BRUNSWICK, N.J.--(BUSINESS WIRE)--Xechem International, Inc. (OTC BB: XKEM - News) announced today that the United States Export Import (Ex-Im) Bank, the official credit export agency of the United States, has approved a Comprehensive Credit Guarantee to support a $9.38 million loan from UPS Capital Business Credit to Xechem Pharmaceuticals Nigeria, Ltd. (Xechem Nigeria). Two Nigerian banks, Access Bank Plc. and Diamond Bank, Plc., are to provide the required Nigerian local bank guarantees in favor of Ex-Im Bank.
Funds Earmarked for Establishment of State-of-the-Art Pharmaceutical Facility in Sheda Science Village, Sheda, FCT, Abuja, Nigeria
The funds to be provided by UPS Capital under the Ex-Im guaranteed loan will be used to purchase the U.S. manufactured plant equipment and machinery needed by Xechem Nigeria to establish a state-of-the-art pharmaceutical facility. The first phase of construction of the new facility began in July of this year. The total cost of the project is estimated at $12.45 million, of which $9.38 million will come from the U.S. loan. The expanded pharmaceutical facility, once completed, will enable Xechem Nigeria to produce commercial scale quantities of NICOSAN(TM), Xechem's breakthrough medicine for the prophylactic management of Sickle Cell Disease (SCD).
Xechem Nigeria received regulatory approval for the manufacture, sales and marketing of NICOSAN(TM) from Nigeria's National Agency for Food and Drug Administration and Control (NAFDAC) on July 3rd, 2006, and officially launched the drug just a few days later at a ceremony presided over by His Excellency, General Olusegun Obasanjo, the President of Nigeria. The drug is currently being produced by Xechem Nigeria in limited quantities at its pilot-scale facility in Abuja.
Dr. Ramesh Pandey, Chairman and CEO of the Xechem Companies said, "We are very pleased that this most anticipated guarantee from the U.S. Ex-Im Bank has now been approved and that we can now accelerate pursuit of our dream of building what we believe will be one of the finest state-of-the-art cGMP standard pharmaceutical facilities in Nigeria. Even more importantly, the Ex-Im guaranteed loan will help insure that we can produce commercial scale quantities of NICOSAN(TM) to meet the needs of the millions of people afflicted with this terrible disease. We are very grateful to Ex-Im Bank, UPS Business Credit, Access Bank and Diamond Bank, as well as our financial consultants, Financialbridge, Inc., for their support for this important project and for helping us make the dream a reality."
About Sickle Cell Disease
Sickle Cell Disease (SCD) is an inherited blood disorder caused by an abnormality in the hemoglobin molecule. Patients with the disease often produce stiff, abnormally shaped red blood cells that often do not flow freely through the blood vessels. This can create clogs in the vessels, which in turn can cut off the flow of normal hemoglobin and oxygen to parts of the body, and can cause severe painful attacks or "crises", damage to various organs and shortened life spans. People with SCD often suffer unpredictable painful crises several times a year lasting from a few hours to a week or more. In the US, there are approximately 80,000 patients with SCD. In Nigeria, that number is believed to be approximately 4 million, with an estimated 10 - 12 million sufferers throughout the African continent. Worldwide, at least 16 million individuals are believed to be afflicted with SCD.
About Xechem
Xechem International is a development stage biopharmaceutical company working on Sickle Cell Disease (SCD), antimalarials, and antiviral (including AIDS), anticancer, antifungal and antibacterial products from natural sources, including microbial and marine organisms. Its primary focus is on the development of phyto-pharmaceuticals (Natural Herbal Drugs) and other proprietary technologies, including those used in the treatment of orphan diseases. Xechem's mission is to bring relief to the millions of people who suffer from these diseases. Its recent focus and resources have been directed primarily toward the development and launch of NICOSAN(TM) (named HEMOXIN(TM) in the US and Europe) for the prophylactic management of Sickle Cell Disease (SCD). With the recent Nigerian regulatory approval of NICOSAN(TM), Xechem is now scaling-up the commercialization of the drug in Nigeria and making preparations for the pursuit of US FDA and European regulatory approval. In addition to NICOSAN(TM), Xechem is also working on another sickle cell compound, 5-HMF, which it has licensed from Virginia Commonwealth University.
Forward Looking Statements
This press release contains certain forward looking statements within the meaning of Section 27A of the Securities Act of 1933 as amended, and section 21E of the Securities and Exchange Act of 1934, as amended, which are intended to be covered by safe harbors created hereby. Such forward looking statements involve known and unknown risks and uncertainties.
Contact: Xechem International, Inc Stephen Burg, Director, 707-425-8855
-------------------------------------------------------------------------------- Source: Xechem International, Inc.
-------------------- The difference between genius and stupidity is that genius has its limits Posts: 10204 | From: NYC | Registered: Mar 2006
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-------------------- The difference between genius and stupidity is that genius has its limits Posts: 10204 | From: NYC | Registered: Mar 2006
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-------------------- All post are my opinion. Do your own DD. Who's clicking your buy/sell button!? Posts: 7800 | From: Virginia | Registered: May 2006
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