The Mission Report

The MissionIR Report - May 2012

In-depth analysis, timely updates, latest market news


Market News

Company Updates


China Outlines New Rules for IPOs

China's securities regulator unveiled guidelines on new rules for the country's initial public offering system, in its latest effort to curb overly high pricing of new shares and shore up confidence among investors in a slightly recovering market.

The reform is aimed to make the pricing of new offerings better reflect the issuer's fundamentals. China's stock market has been plagued by abnormally high pricings of new offerings and the subsequent reverse in earnings growth of the issuer after the listing, as well as continuous weakness in newly-listed companies' shares.

The guidelines on new rules comes as a growing list of state-run firms are eager to tap a slowly recovering domestic stock market. The benchmark Shanghai Composite Index has gained 9% so far this year, after dropping 22% in 2011.

Analysts said the stock market is unlikely to react too much to the reform. "Potential impact from the reform is likely to be limited as it's more focused on technical adjustments in the pricing procedures [instead of fundamental reform of the IPO system]," said Jiang Shiqing, an analyst with Industrial Securities.

In guidelines posted on its website Saturday, the China Securities Regulatory Commission said it will strengthen information disclosure, improve the pricing procedures and increase shares to be floated after the IPO.

The commission reiterated it will push ahead with the establishment of a share offering system focused on information disclosure, requiring issuers and intermediaries to improve their disclosure. It didn't offer a timetable for the reform.

Among other measures to increase the transparency, the regulator said it will disclose preliminary prospectus from an issuer earlier, and is aiming for releasing the preliminary prospectus after it receives the IPO application from the issuer, offering more time for the public to oversee the IPO. Currently, the regulator published the preliminary prospectus after a feedback.

The regulator said it will expand the scope of investors that take part in the inquiry of new offerings by allowing the underwriter to recommend five to ten individual investors to engage in the process. At present, only institutional investors, including fund managers, brokerages and trust investment companies, are allowed to make an offer in an IPO.

The securities watchdog also said it will increase shares available to institutional investors with an aim of making their offers more reasonable. Under the new rules, no less than 50% of new shares planned for sale will be sold to institutional investors. Currently, no more than 20% of new shares will be allocated to institutional investors if the offering is less than 400 million shares; no more than 50% of new shares after deducting the part for strategic investors will be sold to institutional investors if the offering is above 400 million shares.

To strengthen its supervision on the pricing procedure, the regulator said the issuer should disclose further information on its pricing and planned projects as well as potential risks if its pricing is 25% higher than the average level of its peers, and the regulator could require a fresh round of inquiry after reviewing further information on the offering.

The 25% level is a "trigger point" for additional disclosure, not a ceiling for pricing, the regulator said in a separate statement.

The regulator said it will increase share supply by allowing more shares of newly-listed companies to be floated after the IPO.

It will lift the three-month lock-up period after the offering for new shares acquired by institutional investors and encourage an issuer's existing shareholders who have had holdings in the company for three years to sell their stake to new institutional investors in IPOs, according to guidelines.

Geithner: U.S. Can Withstand Any Europe Stresses

U.S. Treasury Secretary Timothy Geithner said that if Europe mismanages its crisis it could slow U.S. growth but said the U.S. financial system could handle any resulting pressures.

"The U.S. financial system is in a very strong position to withstand the foreseeable pressures we might face from Europe," he said.

Geithner said that, on balance, Europe was making headway in efforts to deal with its sovereign debt crisis.

"I think they've made a lot of progress in the last few months in trying to bring back a measure of calm to their financial markets," Geithner said.

Concern about spillover from Europe's crisis led member countries of the International Monetary Fund to agree last weekend to pledge an additional $430 billion to strengthen its war chest in case other countries are adversely affected.

Geithner, who heads to Beijing with Secretary of State Hillary Clinton next week for the latest round of Strategic and Economic Dialogue talks between the two countries, was cautious when asked to assess relations between the two countries.

"Better. Better than it was," he said, noting that a 13 percent real appreciation in the yuan's value was "pretty good for us" because it reduces the competitive price advantage that Chinese-made goods hold over U.S. products.

Geithner and Clinton will discuss a full range of issues, potentially anything from cooperation on efforts to curb Iran's nuclear ambitions to currency values in two days of talks May 3-4. He cited progress in several areas.

"There's better protection for intellectual property rights in China, less piracy against U.S. firms, and China is gradually dismantling a range of the subsidies that their firms enjoy which gives them an unfair advantage," he said.

There was still work to do, Geithner added, but "the basic direction of reforms in China is fundamentally in our interest."

Officials Say India May Increase Cotton Exports

An Indian ministerial panel may allow more cotton exports during this marketing year on Monday, following the expectation of a higher production and lower demand from local textile mills, two senior government officials said Sunday.

"There is likely to be some relaxation in exports as Cotton Advisory Board as well as the farm ministry have raised their estimates for cotton output this year," one of the officials, who declined to be identified, told reporters.

The panel may consider allowing up to 2 million bales of more cotton shipments during the marketing year ending Sept. 30, said another official.

India, the world's second-biggest cotton producer, has already exported 10.6 million bales of the fiber so far while another 900,000 bales will be shipped over a span of next few weeks, the official added. Each bale weighs 170 kilograms.

India's series of policy flip-flops on cotton exports has created uncertainty for potential customers. The government on March 5 banned cotton exports following sudden jump in shipments, but the Trade Ministry was forced to revoke the ban within a week due to fury from Indian cotton-producing states and Farm Minister Sharad Pawar, who said the move would deny farmers better prices.

However, the Trade Ministry allowed shipments of only those quantities which were registered before the ban and still restricts any fresh export registration. Industry executives said there are enough cotton available for local mills. India's 2011-12 cotton output is expected to rise to a record 34.7 million bales, while mill consumption is expected to decline about 5% to 21.1 million bales.

Separately, Trade Minister Anand Sharma said the government will look into the interests of farmers, textile mills as well as other stake holders, while deciding on further cotton exports.

Wall Street Ends Last Week on Strong Quarterly Earnings

"The tone is positive; earnings have generally been better than expected and some of the housing data this week is showing improvement," said Andrew Fitzpatrick, director of investments at Hinsdale Associates Inc.

Manufacturing, auto sales, jobs reports and LinkedIn earnings round out what investors should keep on their radar for this week. "It's a bit of a delayed reaction, but the general sentiment this week has been strong, and the market has reverted back to the weekly sentiment," he added.

Up 1.8% from last Friday's close, the Dow Jones Industrial Average rose 53.28 points, or 0.4%, to 13,257.90, with American Express Co. leading gains that included 24 of its 30 components.

Dow component and consumer product company Procter & Gamble Co. retreated 4.9% after cutting its profit forecast for 2012.

The S&P 500 added 5.45 points, or 0.4%, to 1,405.43, with the index readying for a 1.9% gain for the week.

Consumer discretionary fared best and energy was the sole laggard among its 10 major sectors.

On a technical level, the S&P has had trouble holding 1,400. "One of these days it is going to move on, so if it can hold there, that's a positive sign," said Fitzpatrick of the level breached, but not held, in nearly four weeks.

Among stocks weighing on the S&P 500, Principal Financial Group Inc. fell 5.8% a day after the insurer and asset manager reported a quarterly operating profit below Wall Street's expectations.

The Nasdaq Composite rose 21.56 points, or 0.7%, to 3,072.11, a level that has it on track for a weekly rise of 2.4%.

Ford Motor Co. reported higher-than-anticipated profit as robust results in North America helped stem soft international demand. Inc. rallied, with shares of the online retailer rising 16% after its profit and sales topped estimates. For every stock sliding more than two gained on the New York Stock Exchange, where 381 million shares traded as of 2:15 p.m. Eastern Standard Time.

Stock indexes maintained their gains after the Commerce Department reported the U.S. economy expanded less than expected in the first quarter.

"The increase in consumption coincides with the strong rally in the stock market, perhaps underscoring the Fed's implied wealth effect goal," noted Dan Greenhaus, chief global strategist at BTIG LLC, of the better-than-expected 2.9% hike in household spending in the first quarter.

Wall Street took in stride Standard & Poor's downgrade Thursday of Spain's credit rating, with the agency saying the government's finances would likely deteriorate more than previously thought.

"We've swung from despair late last year to reasonable optimism and now at best that optimism is being tempered back," Tony Norris, co-manager of the Wells Fargo Advantage International Bond Fund in London, said of the global economy.

FluoroPharma Medical, Inc.

FluoroPharma Medical reported that BFPET, its imaging agent for measuring cardiovascular blood flow, has been granted patent rights in Australia as of March, 2012. Combined with patents in Japan and China, FPMI's Australian patent significantly bolsters the company's presence in the Pacific Rim. BFPET is a unique imaging agent that, when used in conjunction with stress-testing, identifies patients with suspected and proven coronary artery disease (CAD). Symptomatic CAD affects millions of patients worldwide and, according to the World Health Organization, cardiovascular diseases are the leading causes of death and disability in the world.

"The Phase I clinical trial for BFPET indicates that the compound has an acceptable dosimetry and safety profile and provides high resolution images of the heart," stated Dr. David Elmaleh, FluoroPharma's Chairman of the Board of Directors and inventor of the technology. "Since BFPET has the potential to be a more sensitive marker than the currently available blood flow agents, we believe that BFPET will have strong advantages over currently marketed products in the detection of acute and chronic ischemia."

About FluoroPharma Medical, Inc. (FPMI)

FluoroPharma Medical, Inc. is a biopharmaceutical company focused on discovering and developing patented Positron Emission Tomography (PET) imaging products to improve patient management by evaluating cardiac disease at the cellular and molecular levels. The company is currently advancing two products in clinical trials to fulfill critical unmet medical needs. The agents will provide clinicians important tools for detecting and assessing pathology before critical manifestations of disease.

The company's proprietary molecules labeled with the radioactive isotope of fluorine combined with PET scanning provide non-invasive, highly specific and efficient assessment of heart metabolism and physiology. FluoroPharma's cardiovascular program addresses the largest segment of the nuclear medicine market.

Molecular imaging fulfills numerous unmet needs in diagnosis by enabling visualization, characterization and measurement of biological processes at the molecular and cellular level. Unlike traditional imaging modalities – MRI, CT, and Ultrasound – that reveal the anatomical abnormalities and cause for disease, PET provides insight into physiology and can detect disease before anatomical manifestation is identified. According to GAI, the market for molecular imaging agents currently exceeds $1.7 billion annually and promises rapid growth for the foreseeable future.

FluoroPharma's comprehensive technology platform was developed by scientists at the Massachusetts General Hospital. To date, the company has been issued four US patents and has seven applications pending in addition to strong international protection. With a solid and experienced management team in place and the necessary resources to advance clinical development, FluoroPharma is well positioned to capitalize on its superior imaging technology.

GlobalWise Investments, Inc.

GlobalWise Investments and its wholly owned subsidiary Intellinetics, Inc. announced a Channel Sales Partnership has been executed with FormFast. Since 1992, FormFast ( has been the recognized leader in e-forms software that has enabled healthcare organizations to achieve significant process improvement across the enterprise. FormFast is the top-ranked workflow provider for over 950 high performance hospitals in achieving their goal of being paperless.

"We are very pleased to announce our partnership with Intellinetics and the addition of the Intellivue™ ECM Solution to our product portfolio," said Rob Harding, CEO of FormFast. Said William J. "BJ" Santiago, CEO of Globalwise, "By partnering with Intellinetics, FormFast expands their product portfolio to include an affordable, cloud-based ECM solution for healthcare providers...Healthcare organizations are very cost conscious and we believe the Intellivue™ platform is the perfect fit for organizations whose budget limitations fall within a range of $60,000 to $100,000 for an ECM solution. I look forward to working with FormFast to generate new sales opportunities in the coming months."

About GlobalWise Investments, Inc. (GWIV)

GlobalWise Investments, via wholly-owned subsidiary Intellinetics, Inc., is a leading-edge technology company focused on Enterprise Content Management (ECM) solutions for the digital age. The ECM industry continues to grow rapidly as a result of unrestricted proliferation of digital content within today's business environment. Leveraging its proprietary cloud-based computing software, GlobalWise is poised to capture a significant market share of this burgeoning industry.

GlobalWise's ECM service is delivered to customers via five unique delivery models which cover the spectrum of business needs: Cloud/Saas (Software as a Service), Hardware Vendor Integrated Service, Software Vendor Integrated Service, Premise (Client-Server), Hybrid (Premise & Cloud/Saas).This diversity gives advanced security & privacy features with an on-demand structure needed for large Tier 3 and Tier 4 businesses that are currently underserved by the market.

The Intellinetics platform defines a new industry benchmark and game-changing approach by combining advanced virtualization & automated content management with an open and service-oriented architecture using web services. The company provides strategies, tactics, and technologies used to manage paper and digital assets from capture to long-term archive, without the need for manual processes conducted by a full time employee.

GlobalWise's management boasts a combined total of over 150 years in ECM leadership and industry experience. The ECM industry is expected to exceed $5.1 billion by 2013 with Gartner predicting a compound annual growth rate of 9.5%. IBM Market Insights predicts adoption of cloud computing to grow by 26% CAGR between 2010 through 2013. Leveraging management and key department heads, Intellinetics has a strong foundation from which to capture significant market share within the lucrative $149 billion Business Software & Services industry.


SEFE recently provided an outline of its electrostatic motor and how this component fits into the design of the company's flagship Harmony III product. In layman's terms, the motor is designed to operate as a generator when supplied with a high voltage-low current power source. SEFE's lead engineer, Mike Hurowitz, said, "Our team's ongoing task is threefold: continued research into the science behind our technology; the development and testing of the various components of Harmony; as well as the protection of these developments as they relate to the product that we are building and the space as a whole."

As to the motor's role in the overall system, Hurowitz commented, "This motor will be a key piece of the electrical generation hardware for SEFE's Harmony III system. It will work in tandem with our patented dynamic electrical converter to produce usable AC power directly for immediate consumption, or grid integration. The system can also be buffered with a storage medium."

About SEFE, Inc. (SEFE)

SEFE, Inc. is focused on developing and deploying a promising solution to our world's energy problems. It is now more obvious than ever before that fossil fuels are increasingly more difficult to find and harvest. It is also well known by now that alternative energy, such as solar, wind and nuclear, has its own list of unsolvable issues. SEFE's unique technology, in comparison, harvests unadulterated, carbon-free, always-on and problem-free energy from a never ending source.

The company calls it True Energy because it's not an alternative to anything and it certainly isn't petroleum based. SEFE's solution works by capturing and converting naturally occurring static electricity in the atmosphere into a constant, abundant and decidedly green source of renewable energy. The patented technology has been designed to be robust, easy to implement and user-configurable from the start so that these systems can be deployed anywhere and generate current usable by any localized source.

Because the cost of deploying and maintaining SEFE systems is relatively low, the company believes it can sell a kWh of electricity at $0.03 per unit. In comparison, nuclear energy costs approximately $0.14 per kWh and wind energy costs approximately $0.07 per kWh. SEFE is currently prosecuting four pending United States Patent Applications to protect their core intellectual property. Once issued, these patents will provide barriers to entry and fortify their foundational business construct.

The company has grown from a national company to an international concern with planned partnerships in China, India, Australia and the EU. SEFE is also well supported by a highly capable management team that has accumulated more than 30 years of experience in corporate management and governance. The company also employs a host of associates who are experts in fabrication and product development, FAA regulations, engineering and utility consultation, among others.

VistaGen Therapeutics, Inc.

VistaGen Therapeutics has secured a new United States patent covering the company's proprietary methods used to measure and type the toxic effects produced by drug compounds in liver stem cells. Test methods included in this new patent, (U.S. Patent 11/445,733), titled "Toxicity Typing Using Liver Stem Cells," cover all mammalian liver stem cells -- rat and mouse cells, for example, in addition to human cells. VistaGen's new patent also covers techniques used to develop a database of gene expression profiles of drugs that have the same type of liver toxicity.

Shawn K. Singh, VistaGen's Chief Executive Officer, stated, "Strong and enforceable intellectual property rights are critical components of our plan to optimize the commercial potential of our Human Clinical Trials in a Test Tube™ platform. This new liver toxicity typing patent further solidifies our growing IP portfolio, and supports the continuing development of LiverSafe 3D™, our human liver cell-based bioassay system, which complements our CardioSafe 3D human heart cell-based bioassay system for heart toxicity."

About VistaGen Therapeutics, Inc. (VSTA)

VistaGen Therapeutics is a biotechnology company applying stem cell technology for drug rescue and cell therapy. Drug rescue combines human stem cell technology with modern medicinal chemistry to generate new chemical variants ("drug rescue variants") of once-promising drug candidates that have been discontinued during late-stage preclinical development due to heart or liver safety concerns. VistaGen also focuses on cell therapy, or regenerative medicine, which includes repairing, replacing or restoring damaged tissues or organs.

VistaGen's versatile stem cell technology platform, Human Clinical Trials in a Test Tube™, has been developed to provide clinically relevant predictions of potential heart and liver toxicity of promising new drug candidates long before they are ever tested on humans.

By more closely approximating human biology than conventional animal studies and other nonclinical techniques and technologies currently used in drug development, VistaGen's human stem cell-based bioassay systems can improve the predictability of the drug development cycle and lower the cost of new drug research and development by identifying product failures earlier in the cost curve. According to the Food and Drug Administration even only a ten percent improvement in predicting failure before clinical trials could save $100 million in development costs, which savings ultimately could be passed on to patients.

Using mature human heart cells produced from stem cells, VistaGen has developed and internally validated CardioSafe 3D™, a novel three-dimensional (3D) bioassay system for predicting the in vivo cardiac effects of new drug candidates before they are tested in humans. VistaGen is now focused on using CardioSafe 3D™ to generate up to two new, safer small molecule drug rescue variants every twelve to eighteen months. VistaGen anticipates that these drug rescue variants will be modified versions of once-promising new drug candidates that have been discontinued by pharmaceutical companies and academic research institutions because of heart toxicity concerns, despite substantial prior investment and positive efficacy data demonstrating their potential therapeutic and commercial benefits.


For more frequent updates, follow us on Twitter!

Home     About Us     IR Services     Investors     Partners     Market Research     Blog     Contact     Disclaimer

© 2012 Mission Investor Relations. All rights reserved.
3645 Marketplace Blvd.   Suite 130-280   Atlanta, GA 30344   404-941-8975