Canada has more than hockey

Canada has more than hockey

Canada our neighbors to the north are known for many things besides their passion for hockey. Yes this home to Montreal Canadians and the Toronto Maple Leafs, two storied NHL franchises is also home to company called M Pharmaceutical, who according to their web site;

“M Pharmaceutical Inc. (CSE: MQ) is a Vancouver based biotechnology company focused on the design, development and commercializing of the eMosquito, a medical device in the market for self monitoring of blood glucose (SMBG). The Company believes the development of the eMosquito will provide diabetics with a pain-free, flexible solution to properly manage and control their condition, thereby reducing long-term complications from the disease. The SMBG device, which will replace the inconvenient and painful “finger pricking” method for type 1 and type 2 diabetes patients, is based on a patent-pending, in-plane actuator designed by three inventors from the University of Calgary. The company is undertaking the development of first and second generation prototypes of the device, to be designed first as a cuff/bracelet, and then miniaturized into a patch.”

What got our attention was an interview given by company CEO George Tsafalas which was posted on the …wait for it ….Stockhouse web site which according to their web site;

“With over 1 million unique visitors a month, Stockhouse is Canada’s #1 financial portal, North America’s largest natural resource site and one of North America’s largest small cap investor communities. Our members are smart, affluent investors actively researching stock and looking for new opportunities. Stockhouse.com is the global hub for investors to find relevant financial news, access expert analysis and opinion and share knowledge and information with each other.”

Now getting back to the interview here is some of what Mr. Tsafalas had to say;

“The device replaces fingerpricking by providing a wearable, pseudo-continuous (I.e. Sufficiently frequent) glucose monitoring from whole blood samples extracted by bites by miniature, single-use mosquito-like cells, assembled together in a cuff or a bracelet.”
“Initially, we aim at taking a similar chunk from the fingerpricking market, 200 million $, but grow it to 1 billion $ and beyond, as we perfect the technology.”
“The following are the Company’s current milestone goals, together with an approximate timeline of achieving the same.

·         Development of a pilot prototype of the eMosquito (Q2 2015)
·         Preparation of a medical device registration strategy (Q2-Q3 2015)
·         Pilot prototype testing in laboratory (Q3 2015)
·         PCT Conversion/Continuous patent management (Q4 2015)
·         Pilot prototype testing on experimental animals (Q4 2015)”

“We would like to start market penetration by reaching 1M $ in sales within 2 years after market entry, and double sales every 2 years thereafter, to reach a steady state value of 1 billion $ for the cuff version, and 4 billion $ for the patch version of the device.”
Now we don’t know Mr. Tsafalas, who according to the company web site;

“Mr. George Tsafalas has an extensive experience in senior operational management, corporate business development and corporate finance in the private and public sectors and is an entrepreneur. Mr. Tsafalas specializes in the execution of strategic budget plans and monitors the development of the portfolio programs, including review of the financial objectives and milestones. Mr. Tsafalas brings experience in the attraction of private equity capital, including angel investment groups and firms, and has assisted in several successful equity capital fundraising efforts. Mr. Tsafalas has been a Senior Executive, Chief Financial Officer, Executive Member of the Board of Director’s and Chair of the Audit Committee of several companies.”

But we certainly admire his chutzpah which for those who don’t speak Yiddish is translated as the art of spreading horse manure. Now we could understand his outlandish claims IF the company actually had a product that worked, one that had at least undergone some testing. But this company doesn’t even have a prototype. Yet even with no product, no credible science nor anyone at the company with experience in glucose monitoring Mr. Tsafalas has the stones to state this is going to be a billion dollar product. Heck that’s not chutzpah that’s out and out over the top crap, which needs no translation.

Listen we always thought Al Mann made crazy statements about Afrezza but at least he had some data to back up his outlandish claims. Its one thing to spin yarns when there is at least some data that can be manipulated but it’s a whole different story when someone makes outrageous claims with absolutely nothing but chutzpah to back them up. This don’t takes stones my friends this takes solid brass ones.

As we dug a little here what we have learned, other than the CEO has brass one’s, according to a press release dated February 6th;

“M Pharmaceutical Inc., formerly First Sahara Energy Inc. ( the “Company”) (CSE:MQ) announces that it has closed its previously announced private placement on an over-subscribed basis. The Company has issued 43,750,000 units at $0.02 per unit for gross proceeds of $875,000.”

Then just a week later;

“The Company also announced that it has closed the final tranche of its recently announced financing. The Company has issued an additional 10,250,000 units at $0.02 per unit for gross proceeds of $205,000, for final total gross proceeds of $1,080,000.”

Then six days later;

“M Pharmaceutical Inc., ( the “Company”) (CSE:MQ) announces that it has finalized the acquisition of the intellectual property associated with the eMosquito by the purchase of M Diagnostics Inc., a private company. The Company paid US$ 150,000 on closing, agreed to pay a 3% royalty on the commercial sale of any related products, and issued 8,066,670 common shares, which are subject to a 3 year escrow, with 10% being immediately releasable, and the balance in 6 equal installments over the next 3 years.

The Company has also entered into an agreement to sell its remaining oil and gas and mining assets to an arms-length private company for a deemed price of $250,000, payable by the issue of 10,000,000 private company shares at a deemed price of $0.025.

The Company is actively looking at other strategic medical devices to add to its portfolio so as to diversify its product mix and reduce market sector risk.”

Now besides having chutzpah Mr. Tsafalas is quite the deal maker, heck the company just bought the rights to a device that will generate billions in sales for just $150,000. WOW!

It must be comforting to the suckers, excuse us, the investors who ponied up $1 million that the company that is now in the complex world of diabetes devices has experience in oil, gas and mining. Not sure how anyone else feels about that but it doesn’t exactly inspire confidence here at Diabetic Investor. However it does prove something we have been stating over and over, anyone stupid enough to invest in companies like this deserve to lose their money. Oh yeah no problem from being an oil and gas con artist to a non-invasive glucose monitoring con artist.

Actually we can’t think of a better background to get into the non-invasive con game then coming from the oil and gas con game. Both industries sell the dream of untold riches, both are filed with well documented failures, both have executives who after they have failed and swindled millions from investors who reinvent themselves under a new company name and repeat the process all over again. The only real difference is that occasionally one of the oil and gas con jobs actually hits oil when they drill, unlike the non-invasive con jobs that have never produced anything but loses for investors.

Frankly we’re surprised that someone from Bayer, Roche or Abbott (NYSE:ABT) has not reached out to Mr. Tsafalas to turnaround their troubled BGM units. Listen with his combination of chutzpah and brass ones he certainly has what these companies desperately need. The ability to convince potential buyers that yes it really is possible for pigs to fly, for elephants to stand on a coffee table without it breaking and that yes sand can be turned into gold. While he’s at it why not go whole hog as we’re sure he could convince these same people that yes there is Santa Claus, Easter Bunny, Mermaids and Leprechauns who leave a pot of gold at the end of the rainbow. Well it might be pot but not of gold more like what someone uses with the Exubera bong.

Diabetic Investor is thankful our Canadian friends to the north has given us some truly great hockey players, many of whom who thankfully wear the Chicago Blackhawks sweeter, and for those unfamiliar with hockey they are not called jerseys. However we must apologize to our many Canadian friends as it seems as though we have given them horse manure. Sorry about that.