stock ticker: IMM

Maybe One Day We Will Get a Cure For Stock Promotion

Bio-Tech has become the sacred cow of the stock market.  Companies with no revenues have been granted large market caps based upon the promise for the future.  Therefore, deciding what is a lemon and what is lemonade is a difficult task.  Fortunately, one stock has made it easy for us.

It was almost one year ago today that shares of Immtech International (IMM) got delisted from the Nasdaq for failure to meet listing requirements.

One year later, and the stock is trading with a with a market capitalization that is north of $350 million on the AMEX.  But what really has changed?

Stocklemon suggests that it is the work of an infamous stock promoter.

March 21, 2003 was an infamous day for Immtech, it was the day they entered into the dark zone of stock promotion.  According to the company’s filings,

“On March 21, 2003, the Company entered into media production agreements with “Winmaxmedia,” an operating division of Winmax Trading Group, Inc. (”Winmax”), to produce materials to be used in connection with equity fundraising efforts. As consideration for services to be performed under the agreement, the Company issued 100,000 shares of its common stock and paid approximately $100,000 of cash during the year ended March 31, 2003″

On the same day the company reported

“On March 21, 2003, the Company entered into an Investor Relations Agreement with Fulcrum Holdings of Australia, Inc. (”Fulcrum”) for financial consulting services and public relations management to be provided over a 12-month period. As consideration for services to be performed under the agreement, the Company will issue to Fulcrum 100,000 shares of common stock and warrants to purchase an additional 350,000 shares of common stock at prices ranging from $6.00 to $15.00 per share.”

Who are these Groups?

Winmax Gets over $100,00 in cash and 100,000 shares at 6 for what?  Video Production.  For the kind of money, Immtech could have shot an independent film.

Who is Fulcrum Holdings and what kind of Investor Relations firm receives this much money from a company?

Ironically, Winmax is a publically traded company on the OTC (WMTG), and they never reported this revenue from IMM.  Someone is in violation over here.¼br /> http://biz.yahoo.com/e/030508/wmtg.ob10ksb.html

Winmax and Fulcrum have the same principal owner..Gerald Sklar.

Who is Gerald Sklar?

Mr. Sklar has been previously banned for 3 years from the British Columbia Securities Commission for putting out false information on two different companies.

http://www.bcsc.bc.ca/Enforcement/eol/sklar_gerald.asp
http://www.bcsc.bc.ca/Enforcement/eol/sklar.htm

This is not the only run in with the law that Mr. Sklar has faced.  Currently, Mr. Sklar is the defendant in the lawsuit of Paoloni, et al v. Goldstein, et al in the U.S. District Court of Colorado.  Sklar is one of the many defendants along with many offshore trusts.   But do not expect Sklar to ever stand trail for this one.  Stocklemon spoke to the attorney of the lead plaintiff (John Alonzo of Denver), and he told us that they were never able to find Sklar to even serve him his papers.

Most recently, Gerald Sklar was the CEO of American Benefits Group (ABFG), currently trading at .007 on the pink sheets.  ABFG was supposed to mine minerals in Madagascar and sell them on the internet..need we say any more?  All of this was going to done through the wonderful and innovative website www.rodeoisland.com  .  Too funny for words.  StockPatrol.com wrote a nice piece on American Benefits Group.
http://www.stockpatrol.com/schlock/articles/ABFG2.html

BTW..Fulcrum Holdings of Australia was the largest shareholder in ABFG.

But Wait, They are not Done.Immtech goes even deeper in bed with Sklar.

On July 25, 2003, the Company entered into a consulting agreement with Fulcrum to identify and negotiate with stock exchanges to list the common stock of the Company and to assist the Company to prepare applications to list the common stock of the Company on a stock exchange. As consideration for services under this agreement, upon the listing of the Company’s common stock on a stock exchange, the Company would issue to Fulcrum 100,000 shares of common stock.

On August 11, 2003, the Company issued 100,000 shares to Fulcrum Holdings of Australia, Inc. for providing assistance in listing the Company on a major exchange and for consulting services.

In September 2003, the Company entered into a separate Finder’s Agreement with Wyndham to identify potential strategic partners and assist in the private placements of debt, equity and/or warrants with proceeds to Immtech through December 2003. As consideration for services to be performed under this agreement, a cash fee equal to 8.0% of funds received by the Company from investors introduced by Wyndham, is due at the closing date of the respective placement. The Company also paid a refundable retainer of $160,000 to Wyndham.”

Is Gerald Sklar their official Investment Banker?????

Another Mysterious Relationship!!!

On July 16, 2003, the Company entered into an agreement with China Harvest International Ltd. (”China Harvest”) for services to be provided to assist the Company in obtaining regulatory approval to conduct clinical trials in China. As consideration for these services, the Company granted China Harvest warrants to purchase 600,000 shares of common stock from the Company at $6.08.

Who is China Harvest International?  Stocklemon has done many searches and can not find any information on this company who received 600,000 warrants of Immtech. 

Gates Foundation

Stocklemon has spoken with numerous investors of Immtech and they seem to be under the belief that Bill Gates is behind this company.  Let us set the record straight right here.  According to filings, Bill Gates nor the Gates Foundation owns 1 share of stock in Immtech.  The Gates Foundation has given money to the University of North Carolina based on a grant which in turn has been given to Immtech to perform certain tests.  All funds given to Immtech must be kept in a segregated account and must be accounted for as such.  The Gates Foundation has no knowledge on Immtech’s plans for China and does not have financial interest in the company or representation on their board of directors.  

JUST TO BE FAIR.

Stocklemon emailed Immtech two days ago requesting information on their relationships with Gerald Sklar and the Gates Foundation..wow it seems funny to mention those two names in the same breath.  WE RECEIVED NO RESPONSE.  What is the company hiding?

Cash at the end of quarter-  $4,761,013

Revenue for the Quarter  658,684

Research and Development Costs for quarter- $904,620

KEY STATISTIC

For the last quarter the company spent $5.3 mil on stock promotion and options and only $904,000 Research and Development.

Factors for Consideration Before Investing In Immtech International

The Company does not have any products currently available for sale, and no products are expected to be commercially available for sale until after March 31, 2004, if at all.
¼br /> Since inception, the Company has incurred accumulated losses of approximately $51,114,000
¼br /> The Company Does not have any legitimate investment banking relationships.
¼br /> Immtech has a Going Concern Letter from their auditor!!!!
¼br /> Immtech has numerous dealings with known stock promoters
¼br /> Immtech has extremely small institutional ownership (3%)
http://www.nasdaq.com/asp/Holdings.asp?mode=&kind=&symbol=imm&symbol=&symbol=&symbol=&symbol=&symbol=&symbol=&symbol=&symbol=&symbol=&FormType=&mkttype=&pathname=&page=holdingssummary&selected=IMMownership

There is an old expression in horse racing, “If you can’t bet on the horse, you bet on the jockey.”  Well, in this case the jockeys involved have dubious track records.  It is the opinion of Stocklemon that because the company has been unable to raise money or get coverage from a legitimate investment banker, the future if Immtech is shaky at best.  Cautious Investing To All.