The Resevers Merger Deal Between Point Therapeutics Inc. (POTP) and DARA BioSciences, Inc.

Lets review something about the advatange of reverse merger:

To become a public company quickly, one of the most expeditious routes is to acquire an existing public company, and merge a private company into it. Commonly referred to as a ‘Reverse Merger’, taking a Company public this way is not new at all. Several nationally known, very successful and now large profitable companies got to be a public company by way of a reverse merger.

The reverse merger process has been utilized by many successful and well known business people. The process has also been successfully used by those in the public securities profession. For example, early in 1996, Muriel Siebert, who made history on Wall Street, by becoming the first woman to buy a seat on the New York Stock Exchange (NYSE), took her brokerage firm public through a reverse merger with a liquidated publicly traded New York furniture business.

These and other top business people realized that to become a public company quickly, acquiring an existing public company was the easiest and most cost effective way to accomplish their goals.

Merging a private company with a public company must be completed in such a way that potential difficulties can be minimized or avoided. When a private company merges with a public company that had been active, there becomes a real and dangerous potential of finding ’skeletons in the closet’. These may be in the form of unsettled or pending lawsuits, dissatisfied shareholders, late or negligent filing of reports with the various regulatory bodies, environmental or other problems.

POTP is exactly what DARA is looking for to go public by buying it and DARA is also a satisified buyer to POTP. POTP was previously puts hold on its talabostat trial because of its result was weaker-than-expected. Fortunity, Point has another DPP inhibitor as a preclinical drug candidate-PT-630 for type 2 diabetes. PT-630 has a high affinity for DPP-4 which is a widely known target that numerous pharmaceutical companies are studying to treat type 2 diabetes. Our preclinical data suggest that PT-630 potentially has several advantageous features in comparison to certain leading products in the market or in development, including prolonged inhibition of DPP-4, once per day dosage, decreased HbA1C, reduced triglyceride levels, reduced glucose levels in oral glucose tolerance tests, and improvement in insulin sensitivity.

From the latest form 10-k POTP release, we also understand that SEC considered it as non-operating and shell company because POTP may encounter the financial problem which unabled them to continuous to operate. And then they have mentioned they requst $400,000 from DARA, and they are still in negotiation about that and the completion of merger deal.

P.S: Be focus on the news we are expecting, the merger deal information and the funding issue of DARA and POTP. Any of news can clarify the current operation status of POTP or merger positive progress would easily push the stock price to $1+

Rerverse Merger is a very smart way to go public by buying public shell company. This way is cost effeciently and quickly. Buying POTP, a financial troubling company with potential drugs. That’s the best way and great opportunity for DARA go public to raise more money to invest and expend its developments. You might also interested to read: http://www.encyclopedia.com/doc/1G1-19243319.html

Good luck with POTP

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