For Monday, November 21st
GEDU, VRUS, SAPX, ALTO, COIND, HPGS
Our Stocks to Watch today include Global Education & Technology Group Ltd. (NASDAQ: GEDU), Pharmasset Inc. (NASDAQ: VRUS), Seven Arts Entertainment Inc. (NASDAQ: SAPX), Alto Group Holdings Inc. (OTCBB: ALTO), Converted Organics Inc. (OTCBB: COIND) and High Plains Gas Inc. (OTCBB: HPGS).
STOCKS TO WATCH
GLOBAL EDUCATION & TECHNOLOGY GROUP (NASDAQ: GEDU)
"Up 96.23% in morning trading"
Detailed Quote: http://www.otcpicks.com/quotes/GEDU.php
Global Education & Technology Group Limited is the largest test preparation provider for IELTS and a leading provider of educational courses and related services in China. Under its "Global" brand, the Company also offers diversified services that span a student's educational life cycle, including after-school courses, overseas study consulting, and professional certification test preparation. As of June 30, 2011, the Company's network comprised 105 directly operated and 309 franchised learning centers across China, as well as an online course delivery platform with more than one million registered members.
November 21 - Global Education & Technology Group Limited to Announce Third Quarter 2011 Financial Results on November 29, 2011
Company to Hold Conference Call on November 29, 2011 at 8:00 pm ET
Global Education & Technology Group Limited (NASDAQ: GEDU) ("Global Education" or the "Company"), the largest test preparation provider for the International English Language Testing System ("IELTS") and a leading provider of educational courses and related services in China, today announced that it plans to release its unaudited third quarter 2011 financial results on November 29, 2011, after the market closes.
The Company will hold a conference call at 8:00 p.m. U.S. Eastern Time on Tuesday, November 29, 2011 (9:00 a.m. Beijing Time on November 30, 2011) to discuss its unaudited third quarter 2011 financial results.
PHARMASSET INCORPORATED (NASDAQ: VRUS)
"Up 84.66% in morning trading"
Detailed Quote: http://www.otcpicks.com/quotes/VRUS.php
Evarco Inc. is the Future Driven® automotive retail group dedicated to deploying a coast-to-coast network of environmentally friendly franchised dealerships and vehicles. Evarco is bringing to market the most advanced clean technologies available in plug-in electric, alternative fuel, and pre-owned hybrid vehicles. Evarco has developed a dealer network allowing growth into most US States by 2012.
November 21 - Gilead Sciences to Acquire Pharmasset, Inc. for $11 Billion
- Accelerates Development of All-Oral Regimen for the Treatment of HCV
- Leverages Gilead’s Infrastructure and Expertise in Antiviral Drug Development, Manufacturing and Commercialization
Gilead Sciences, Inc. (NASDAQ: GILD) and Pharmasset, Inc. (NASDAQ: VRUS) announced that the companies have signed a definitive agreement under which Gilead will acquire Pharmasset for $137 per share in cash. The transaction, which values Pharmasset at approximately $11 billion, was unanimously approved by Pharmasset’s Board of Directors. Gilead plans to finance the transaction with cash on hand, bank debt and senior unsecured notes. The company expects the transaction, when completed, to be dilutive to Gilead’s earnings through 2014 and accretive in 2015 and beyond. Further guidance will be provided when the transaction closes, which is expected to be in the first quarter of 2012.
Pharmasset currently has three clinical-stage product candidates for the treatment of chronic hepatitis C virus (HCV) advancing in trials in various populations. The company’s lead product candidate, PSI-7977, an unpartnered uracil nucleotide analog, has recently been advanced into two Phase 3 studies in genotype 2 and 3 patients. Both studies will utilize 12 weeks of treatment with PSI-7977 in combination with ribavirin. One study will compare this all-oral regimen against 24 weeks of the standard-of-care pegylated interferon/ribavirin in treatment-naïve patients, and the second study will compare the all-oral regimen to placebo in interferon-intolerant/ineligible patients. A third Phase 3 study in genotype 1 patients will be initiated in the second half of 2012, the design of which is dependent on the outcome of Phase 2 studies which are evaluating PSI-7977 in various combinations in genotype 1-infected patients. If successful, this strategy could lead to an initial U.S. regulatory approval of PSI-7977 in 2014. PSI-938, an unpartnered guanosine nucleotide analog, is being tested in a Phase 2b interferon-free trial as monotherapy and in combination with PSI-7977 in subjects with HCV of all viral genotypes. Mericitabine (RG7128), a cytidine nucleoside analog, is partnered with Roche and is being evaluated in three Phase 2b trials. Roche is responsible for all aspects of the development of mericitabine.
“The acquisition of Pharmasset represents an important and exciting opportunity to accelerate Gilead’s effort to change the treatment paradigm for HCV-infected patients by developing all-oral regimens for the treatment of the disease regardless of viral genotype,” said John C. Martin, PhD, Chairman and Chief Executive Officer of Gilead. “Pharmasset presented compelling Phase 2 data earlier this month further characterizing the strong efficacy and safety profile of PSI-7977. The compound, together with Pharmasset’s other pipeline candidates, represents a strong strategic fit with Gilead’s vision, pipeline and capabilities. This transaction will serve to drive the long-term growth of our business, and we look forward to working closely with the Pharmasset team to advance a broad clinical program in HCV to address the unmet needs of patients and the medical community.”
“We are excited to join together with Gilead, which shares our commitment to providing HCV patients with new, highly efficacious and safe oral therapies,” said Schaefer Price, President and Chief Executive Officer, Pharmasset. “We are very encouraged by the data from our Phase 2 studies of PSI-7977 and believe strongly in the potential of this compound to be a component in the transformation of the treatment of chronic HCV. Gilead’s established expertise and leadership in the field of antiviral drug development and commercialization, coupled with the company’s existing portfolio of promising compounds for HCV, make this partnership an ideal step to fully realize the potential of our promising molecules as part of future all-oral combination therapies for millions of patients in need around the world.”
Gilead’s research and development portfolio includes seven unique molecules in various stages of clinical development for the treatment of HCV. Pegylated interferon in combination with ribavirin is currently part of the standard of care treatment for patients with chronic hepatitis C. Gilead is focused on advancing multiple compounds with different mechanisms of action and resistance profiles in combinations that will support delivery of an all-oral regimen that would eliminate the need for pegylated interferon. Three separate all-oral Phase 2 studies are currently ongoing, and Gilead expects clinical data from these studies to become available in 2012 and early 2013. Pharmasset’s compounds are complementary to Gilead’s existing HCV portfolio, and the transaction will help advance Gilead's effort to develop an all-oral regimen for the treatment of HCV.
Terms of the Transaction
Under the terms of the merger agreement, a wholly-owned subsidiary of Gilead will promptly commence a tender offer to acquire all of the outstanding shares of Pharmasset’s common stock at a price of $137 per share in cash. Following successful completion of the tender offer, Gilead will acquire all remaining shares not tendered in the offer through a second step merger at the same price as in the tender offer.
The consummation of the tender offer is subject to various conditions, including a minimum tender of at least a majority of outstanding Pharmasset shares on a fully diluted basis, the expiration or termination of the waiting period under the Hart Scott Rodino Antitrust Improvements Act, and other customary conditions. The tender offer is not subject to a financing condition.
The $137 per share price in the transaction represents an 89% premium to Pharmasset’s closing share price on Friday, November 18, 2011, the last trading day prior to announcement, and 59% to Pharmasset’s all time high closing stock price.
Gilead has received commitments from Bank of America Merrill Lynch and Barclays Capital in connection with financing of the transaction.
Barclays Capital and Bank of America Merrill Lynch are acting as financial advisors to Gilead in the transaction. Morgan Stanley & Co. LLC is acting as the financial advisor to Pharmasset. Skadden, Arps, Slate, Meagher & Flom LLP is serving as legal counsel to Gilead and Sullivan & Cromwell LLP is serving as legal counsel to Pharmasset.
SEVEN ARTS ENTERTAINMENT INCORPORATED (NASDAQ: SAPX)
"Up 43.90% in morning trading"
Detailed Quote: http://www.otcpicks.com/quotes/SAPX.php
Seven Arts Pictures PLC was founded in 2002 as an independent motion picture production and distribution company engaged in the development, acquisition, financing, production, and licensing of theatrical motion pictures for exhibition in domestic (i.e., the United States and Canada) and foreign theatrical markets, and for subsequent worldwide release in other forms of media, including home video and pay and free television.
November 8 - Seven Arts and GFM Films Announce Acquisition of 'Yellow'
Seven Arts Entertainment Inc. (NASDAQ: SAPX) ("Seven Arts") and GFM Films LLC ("GFM") announced today that their joint venture for film distribution, which was formally launched at the 2011 Cannes Film Festival, has made its first acquisition. Peter Hoffman of Seven Arts and Michael Ryan of GFM negotiated the terms with Manu Kumaran of Medient for acquisition of worldwide rights to Nick Cassavetes' new feature "Yellow." The film has completed shooting and will be ready for release in the spring of 2012.
In the tradition of Cassavetes' previous festival favourites, "Alpha Dog" and "She's So Lovely," "Yellow" is a dark comedy about a young woman who comes to terms with her family's shadowed past. The ensemble cast features Sienna Miller, Melanie Griffith, Gena Rowlands, Ray Liotta and a breakout performance by Heather Wahlquist. Seven Arts and GFM expect the film to premiere at a major film festival next year.
Peter Hoffman, CEO of Seven Arts, commented, "We are thrilled to be in business with a proven exceptional talent such as Nick Cassavetes. We hope this will be the first of several projects with Manu and his team."
Michael Ryan, Partner of GFM, added, "I'm delighted to be collaborating with the Cassavetes family again, having worked on so many of John's movies in the past. Nick has assembled a wonderful cast and continues to work his magic in this remarkable production."
Manu Kumaran of Medient commented, "Nick Cassavetes is not only a brilliant story teller but is also a filmmaker who is very aware of the society around him. 'Yellow' is classic Nick — funny, warm, poignant and a social comment all at once. Medient could not have found better partners than Seven Arts and GFM Films to distribute the film."
ALTO GROUP HOLDINGS INCORPORATED (OTCBB: ALTO)
"Up 50.00% in morning trading"
Detailed Quote: http://www.otcpicks.com/quotes/ALTO.php
Alto Group Holdings Inc. engages in the acquisition and exploration of mineral properties in Africa and Latin America. The company primarily focuses on the exploration of gold and silver concessions. It owns interests in the Los Tres Machos concession that covers 1,000 hectares of staked and sampled mineral lands; and Zuna concession, which covers 750 hectares of staked and sampled mineral lands located in the state of Guadalajara, Mexico. The company also holds 70% of the rights to a mining concession in the Ashanti Belt of Ghana, West Africa. Alto Group Holdings Inc. was founded in 2007 and is based in South Jordan, Utah.
September 30 - Alto Group Holdings Announces Change of Control
New CEO Given Controlling Voting Interest for 12-Month Period
Alto Group Holdings, Inc. (OTCBB: ALTO) (“Alto” or the “Company”) announced that Randall Appel, the newly-appointed Chief Executive Officer of the Company, has entered into a Shareholder Voting Agreement (“Agreement”) with Opiuchus Holdings, Inc. (“OHI”) whereby Mr. Appel has received a controlling interest in the Company’s voting shares. Opiuchus Holdings, Inc., a company owned by Mark Klok, the former CEO of the Company, is a holder of 100,000 Series B Preferred Shares which collectively hold an aggregate of 2,000,000,000 votes. Pursuant to the Agreement, OHI has transferred all voting rights of the Preferred Shares to Mr. Appel for a one-year period, which has enabled Mr. Appel, subject to certain exceptions contained in the Agreement, to unilaterally control the election of the Alto Board of Directors and the direction of the Company. The Preferred Shares carry no dividend, distribution, or other economic rights and are not convertible into Common Stock of the Company.
Commenting on the Agreement, Mr. Appel stated: “This Agreement represents an important part of the transition of the Company’s management and control that began a few weeks ago when I was appointed Chief Executive Officer. We expect that the effect of this Agreement will be increased investor confidence in the stability of the Company and its management, as well as increased confidence in the Company’s strategic direction. I look forward to moving ahead with a clearer demarcation of my ability to affect the Company in a positive manner and more effectively respond to the needs of our shareholders.”
CONVERTED ORGANICS INCORPORATED (NASDAQ: COIND)
"Up 20.97% in morning trading"
Detailed Quote: http://www.otcpicks.com/quotes/COIND.php
Converted Organics, Inc. focuses on the manufacture, sale, and distribution of natural soil amendment products combining nutritional and disease suppression characteristics. It uses organic food waste as raw material to manufacture soil amendment products. Converted Organics plans to sell and distribute these products in the agribusiness, turf management, and retail markets. The company was founded in 2003 and is headquartered in Boston, Massachusetts.
November 7 - Converted Organics Announces 2011 Year-To-Date and Second Quarter Financial Results and Schedules Shareholder Conference Call
Shareholder Conference Call to be held on Wednesday, August 17, 2011 at 10 AM ET
Converted Organics Inc. (OTCBB: COIND) announced that it had sales for the three months ended June 30, 2011 of $1,429,000 and income for the three months of $1,098,000 compared to sales of $1,245,000 and a loss of $3,325,000 for the same quarter last year. For the six months ended June 30, 2011 the Company reported sales of $2,169,000 and a loss of $649,000 compared to sales of $1,957,000 and a loss of $9,705,000 for the same period last year. Income generated in the quarter ended June 30, 2011 is attributable to gains on debt and equity transactions. Further detail is available in the Company's Form 10-Q which was filed on August 15, 2011 and will be discussed during the Company's shareholder conference call which is scheduled for Wednesday, August 17, 2011 at 10:00 AM EST.
"We are pleased with our results for 2011 overall which show increased sales and operating margins, and with our progress in developing our businesses. Profits in the second quarter were attributable to gains on debt and equity transactions related to share price fluctuations, however, we are confident that we are completing the restructuring process, which we began in 2010, and we are continuing to position the business to grow organically through acquisitions and other transactions," said Edward Gildea, president of Converted Organics.
Converted Organics has scheduled a conference call on Wednesday, August 17, 2011 at 10:00 AM ET to update shareholders on recent business developments and discuss the Company's results for the quarter ended June 30, 2011.
HIGH PLAINS GAS INCORPORATED (OTC: HPGS)
"Up 19.49% in morning trading"
Detailed Quote: http://www.otcpicks.com/quotes/HPGS.php
High Plains Gas, Inc. is a Gillette, Wyoming based energy company actively engaged in the acquisition, development and production of natural gas primarily in the Powder River Basin. The Company’s assets include the former Marathon “North & South Fairway” assets. These assets consist of 1614 Coal Bed Methane Wells with associated flow lines and over 155,000 net acres. This combined with the company’s existing 92 natural gas wells gives the company a strong foundation in the natural gas industry. High Plains Gas intends to continue to pursue expansion opportunities for the profitable production and transmission of natural gas. High Plains Gas believes it has unique expertise and experience in the refurbishment and reactivation of wells that produce natural gas from coal bed methane formations that helps position it strategically in the Powder River Basin. In 2011, the Company formed a subsidiary, High Plains Gas Services, LLC, focused on providing construction and maintenance services to the energy industry, primarily in the Western United States.
November 17 - Steps in the Right Direction — Featured Research on BioFuel Energy Corp. and High Plains Gas Inc
The BollingerReport.com introduced featured coverage of BioFuel Energy Corp. (NASDAQ: BIOF) and High Plains Gas Inc. (OTCBB: HPGS). Full research reports are available to readers at www.BollingerReport.com.
With the European Financial Stability Facility set to increase to $1.4 trillion, it marks a significant move forward to strengthen the safety net in place for Europe's most troubled countries. Private bondholders of Greek debt are settling at a 50% cut as another $180 billion in fresh aid is set to arrive, enabling banks to recapitalize at a healthy 9% reserve. Overall, these measures will bring Greece's debt burden down to 120% of GDP by 2020. An important consideration is political commitment to this road map. Currently the global community appears to be on point with ECB's initiative, an outlook that should be sufficient to support markets around current levels.
Bollinger Report screened and selected BioFuel Energy Corp. for its current position within the basic materials industry. BioFuel Energy Corp. produces and sells ethanol and its co-products (primarily distillers grain), through its two ethanol production facilities located in Wood River, Nebraska and Fairmont, Minnesota. The Company's ethanol plants are owned and operated by the Operating Subsidiaries of the BioFuel Energy, LLC, (the LLC).
Bollinger Report is featuring High Plains Gas Inc. for its changing role within the industry. High Plains Gas, Inc. (High Plains), formerly Northern Explorations, Ltd., is an exploration and production company. It is a natural gas and petroleum exploration, development and production company, engaged in locating and developing hydrocarbon resources, primarily distressed and/or orphaned oil and gas projects throughout the Rocky Mountain region.