Jul. 22 at 5:19 PM
$BRTX Important to discuss what happened here IMHO : 1) Kaos bought 4.9% of this company and wanted it to pivot to AI. BRTX has no AI expertise or business. Companies during the .com boom did the same, adding the label to their company to attract unsophisticated buyers. That was a sham then and this feels like a sham now. 2) The Bowery Group agreed to a
$1 million line in exchange for 3 board seats, gaining control of the company. Only a truly desperate, near bankrupt company would accept such a deal. This triggered what Lance Alstodt believed was a change of control (it did) and he, along with other execs, resigned and demanded
$2.85 million in change of control comp. The new board plans to investigate how these deals were ever made. My guess is the company will file for BK unless they can raise
$5 million, the stockholders will be left with zero, and Bowery will get the IP which has some value. No way they make that loan without access to the assets.
