THE SKY IS FALLING, THE SKY IS FALLING.

In the post I'm replying to I offered up what I viewed as the possible reaction if tomorow comes with no news regarding the loan and/or top-line results.  It looks like it started a little early.  My wife asked me "what's going on with Resverlogix today", and I explained the situation.

As things stand right now the company has until tomorrow to annouce Top-Line results for the BETonMACE trial.  If they fail to do so then they will have breached a covenant of their Loan with Third Eye.  I explained what would happen if Third Eye foreclosed on the loan....how Resverlogix has basically leveaged all the company's intellectual property (including apabetalone) as security for the loan.  I then told her that if that were to happen....if the company lost all its IP, that our shares would be basically worthless in my opinion....that we might get 3 cents each for them.

I then asked her if she wanted me to sell.  Her answer?  "Oh my God, I don't know what to do".  I drove the point home, saying right now we could sell and we'd likely get $3.00+ on average for our shares....that selling 100s of share lots of 100 shares each, that it would likely depress the PPS.  Or we could wait, but that if Third Eye foreclosed on all the company's IP, that instead of $3 or therabouts we might be lucky to get even 3 cents for them.  

I'm not pointing this out to stir up FUD.....I am merely commenting on the reality of the situation right now, and as evidenced by today's posts, there already seems to be plenty of FUD already.

Frankly I'm not worried....this is just part of the market game the way I see things....maximum pain, maximum uncertainty will probably some to bail out based on fear.  And I still think a short attack is possible tomorrow....while some might be uneasy right now we can at least look at the PPS and say "well, there's not much trading and the PPS is holding up, so things much be okay".

But if tomorrow there's a bear raid, if shorts borrow maybe a 100K shares or more and start dumping them to take the PPS down....then that sentiment has the potential to change.  If the PPS starts falling there's no way to know in real time if its shareholders jumping ship, or short sellers borrowing and dumping shares in an effort to shake shareholders out.

News has to come out tomorrow, in my view there's no ifs ands or buts about it....but imo they have until after the closing bell, sometime before the calander turns to Feb.  Breaching teh covenant requiring top-line data on a loan that has all the company's IP as collateral securing the loan...that is absolutely material.