GNBT: Generex will be one to keep an eye on heading into next month's shareholder vote on whether or not to approve the reverse split proposed by the company and explained in recent presentations.

If the RS does go through, investors of GNBT will be 'dividended' shares of Antigen Express, once Generex spins-off its subsidiary in an IPO.

AE-37 has been identified as the centerpiece for the future by Generex, and some investors - including this one - took note of that statement, since until the recent time, it was assumed that the flagship Phase III Oral-lyn gave the company the best shot at short and long term success.

It looks like the insulin spray Oral-lyn will need an additional trial before being brought to the FDA for approval, which means that there is plenty of time for investors to decide whether or not the company - or its soon-to-be spinoff - make for a worthy investment.

Generally stocks that undertake a reverse split drop immediately following the RS, and I've come to the decision that it might be worth sitting out the drama that will be created leading into the vote.

GNBT could run-up a little bit before the RS is announced (if approved by shareholders), as that will allow the shorts to start from a higher mark on the back end of the split, but even with this company's flair for the dramatic always providing the potential for something to materialize, I'll sit on the sidelines for now.

Disclosure: No position.

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