Good day everyone. And welcome to today’s call with ... · Tony Fiorino: Hey Joe, I was a little shocked that the update was so short. Quick question for you is what concerns can

Generex Investor Call 07/25/2019

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Operator: Good day everyone. And welcome to today’s call with GENEREX, to

provide guidance on three major initiatives. NASDAQ listing, one for one

shareholder dividend, the GENEREX immuno-oncology spinout and public

strategy as well as merger with Kiromec. At this time all participants are in a

listen only mode. Later you will have an opportunity to ask questions during

the question and answer session and you may register to ask a question at any

time by pressing the star (*) and one (1) on your touchtone phone. Please

note this call may be recorded. It is now my pleasure to turn today’s program

over to Anthony Creche to read the Safe Harbor Statement.

Anthony Creche: Hello everyone, forward looking statements included in this presentation are

made pursuant to the Safe Harbor provisions and privacy securities litigation

reform act of 1995. These statements relate to future events or to our future

financial performance, and involves known and unknown risks, uncertainties

and other factors that may cause our actual results, levels of activity,

performance or achievements to be materially different from any future

results, levels of activity, performance or achievements expressed or implied

by these forward looking statements.

In some cases you can identify forward looking statements by the use of

words such as may, could, expect, intend, brand, seek and believe, estimate,

predict, potential, will continue or the negative of these terms or their

comparable terminology. You should not place undo reliance on forward

looking statements because they involve known and unknown risks. And

certainties and other factors that are in some cases, beyond our control and

that could materially affect actual results, levels of activity, performance or

achievements.

A more detailed description of these and other risks and uncertainties may be

found in our annual report on _____ [00:01:52] and other public filings with

the Securities and Exchange Commission. If any of these results or

uncertainties materialize or if our underlying assumptions prove to be

incorrect, actual results may vary significantly from what we projected. And

any forward looking statement you read in this presentation reflects our

current views with respect to future events and is subject to these and other

risks, uncertainties and assumptions relating to obligations, operations, results

of operations, growth strategy and liquidity. We assume no obligation to

publically update or revise these forward thinking statements for any reason,

whether as a result of new information, future events or otherwise.

Now I’d like to turn over the call to Joe Moscato, President and Chief

Executive Officer of GENEREX Biotechnology corporation.

Joe Moscato: Thank you Anthony. My fellow shareholders, I’m pleased to announce a

complete package has been given to _____ [00:02:49] Associates, a special

advisor for our listing to NASDAQ. And GENEREX today play the

application fee to the NASDAQ to be listed. We expect the NASDAQ start

the process of review and acceptance procedures next week, and we will


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advise our progress and press releases as additional information becomes

available. We estimate a whole listing process will take 30-60 days to

complete, at which time if we are granted a listing, we will then pay the one

for one announce dividend to shareholders. As it pertains to dividends,

yesterday was the record day. And shareholders of record will receive the

dividend only if they hold their shares up through the X dividend date, which

will be a few days after our NASDAQ listing. Please remember, if you sell

your shares before the X date, the person who bought your shares will receive

your dividend. We will PR a complete guide on the dividend in the coming

days and please speak to your investment broker or advisor for information or

investment advice.

In addition, GENEREX has recently announced to be paid $3.1 million in

long standing debt. At market closing price of $2.81 a share, Tuesday, July

16. We also have paid off other notes and we’ll be paying off another note in

cash next week, which the fund has agreed to receive. All this debt, which

now has paid or will be paid next week will enhance our NASDAQ listing

review as well as strengthen our balance sheet.

I’d like to also address a spin out of the GENEREX immuno-oncology,

which we have been focused on completing. We have signed the merger

agreement with the public company, which we will be filing a super 8K in the

coming weeks. Splitting out our audits from GENEREX companywide audits

and are completing all the necessary filing documents for its public entry.

Once this is complete, GENEREX shareholders will receive the new

GENEREX immuno-oncology dividend. Will receive their public shares.

GENEREX completed their one for four dividend in new GENEREX

immuno-oncology Inc. on the 25th of February. And those shares are book

entry shares without chance for _____ [00:05:22]. We estimate the complete

process for a public debut will be in 60 days.

And I’m happy GENEREX shareholders will benefit from this highly viable

public strategy. Once GENEREX immuno-oncology is public, we anticipate

closing our announced merger with Kiromic sometime late September, early

October creating a cutting edge critical stage oncology research company,

with multiple immunotherapeutic platforms, including CAR-T, CAR NK,

oral _____ [00:05:57] vaccines and artificial intelligent platform.

Additionally Kiromic has been granted final indication by the FDA in ovarian

cancer. This is very special.

I’d like to open the lines up for questions now. And thank you again for

joining today’s call.

Operator: At this time, if you would like to ask a question please press the star (*) and

one (1) on your touchtone telephone. You may withdraw your question at any

time by pressing the pound (#) key. Once again to ask a question please press

the star (*) and one (1) on your touchtone phone. We’ll pause for a moment


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to allow questions to queue. We’ll take our first question today from Frank

Solera; your line is open.

Frank Solera: Yes, Mr. Moscato. I appreciate your multiple efforts to bring new synergies

into the company. It seems like you’re doing very well in progressing and

you just mentioned satisfaction of a lot of outstanding debt. But I recall, and

I’m sorry I don’t have the exact data or story but there was legal action

ensued from a line of credit that was given back in the Fall. That seemed to

be rather, I don’t know questionable or raised questions anyways. Can you

tell me what the status of that legal action is? If that’s involved in these other

loans?

Joe Moscato: No, that has nothing to do with it. You must mean the suit that we brought in

third party with the VA Bank. And –

Frank Solera: Compass Bank.

Joe Moscato: Compass Bank. Well my stance on that is very simple, we didn’t buy those

assets. We didn’t buy their collateral. Fineto, a company that we bought the

NSO from, still has those assets. They were never transferred to GENEREX.

So, in my opinion, in my view how can I be liable to pay for something that I

don’t own or never owned? So you know we understand that Compass

believes we were acquiring it. But we never acquired it, we never retained it.

And so my stance on that is you can’t pay for something if you don’t own it

or never owned it.

Frank Solera: Thank you.

Operator: We’ll take our next question from Tony Fiorino. Your line is open.

Tony Fiorino: Hey Joe, I was a little shocked that the update was so short. Quick question

for you is what concerns can we discuss that have come through the initial

efforts of Donoholm [PH] for the uplisting?

Joe Moscato: Donoholm is doing a great job, one of the best in the business. You know as

of right now they have a full package. They have all of our due diligence

items in our due diligence room. We paid the application directly to the

NASDAQ. As far as I’m concerned, they have everything in – already

submitted or will be submitted tomorrow for the listing.

Tony Fiorino: Any concerns from their side in terms of what we’re presenting?

Joe Moscato: None that have come up to me, that I’ve had to deal with at all. No. None at

all.

Tony Fiorino: Great, good luck for all of us.

Joe Moscato: Yes, thank you very much.


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Operator: As a reminder, if you would like to ask a question today please press the star

(*) and one (1) on your touchtone phone. We’ll take our next question from

John Nickel, your line is open.

John Nickel: Yes thank you. Joe I want to thank you and all of the deep pockets for the

two lessons that you have taught an old man. Number one is corporate and

stock market finance, and two is patience. And my --

Joe Moscato: Thank you.

John Nickel: To all of the deep pockets who made all of this happen, who have accepted

this novice along for the ride? It really has been an experience for me. And

like I say, I’m an old man. That being said, I am the old man, my patience is

running out, and I think it’s time to complete this endeavor. Joe I’ve said to

you a couple of times here, done is better than perfect. Now I understand

what you said, and I appreciate the information. You answered just about all

my questions during the brief call. Please accept my thanks and get it done,

pedal to the metal.

Joe Moscato: Yes sir, and I really appreciate you calling in and asking questions –

obviously I appreciate the kind words. And we’re all working very hard to

complete everything we said we would complete.

John Nickel: Thank you.

Joe Moscato: Thank you sir.

Operator: We’ll take our next question from Raymond Barbosa. Your line is open.

Raymond Barbosa: Yes. Good afternoon.

Joe Moscato: How are you sir?

Raymond Barbosa: Yes, I have a question. It appears that you indicated that we would have to

wait – we would have to hold the shares through the dividend date.

Joe Moscato: That’s correct.

Raymond Barbosa: After the listing so that I thought it was going to be as of the record date,

which would have been yesterday.

Joe Moscato: No, the way it works is a large event. It’s a one for one so it’s 100%; so there

are two types of dividends. One that’s a smaller qualification and then the

larger qualification, which is the one we’re doing. And the way that works is

the record date, which was yesterday. The pay date, which will be the day

after the NASDAQ listing and then the X date, which will be the next day

after the pay date. Just like we did the last dividend. And that you have to


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hold your shares until the X date. And if you sell them, unfortunately they go

to the person you sold them too. And my in house counsel, Marshall

Shectman, maybe you can add a little bit of color to that?

Marshall Shectman: Sure, pursuant to the federal rules, anything over 25% you do the pay date –

excuse me, you do the X-dividend date after the pay date. That alleviates or

makes for a better orderly market to not get the billiard break up shares going

everywhere. Makes a much better orderly market.

Raymond Barbosa: All right, that means if it occurs December first we would have to hold it

through like September 2? And then we could _____ [00:05:57] right after

that?

Joe Moscato: Correct. So typically it’s 30 days for the review process and _____ [00:13:34]

got listed. There’s no way for us to know if they’ll have questions for us. If

they need any supporting documentation on anything. So our hope is that

we’d sell right through, there’s no way of telling that. So that’s why we’re

estimating 30-60 days for the final review, as well as potentially getting

listed.

Raymond Barbosa: Okay. I have a quick question, do we have a market maker in our stock.

Joe Moscato: We have many of them. If you take a look at – if you go to OTCmarkets.com

and you go to the bid and the ask on the screen, you’ll be able to see all the

different market makers there are on both sides of the shares.

Raymond Barbosa: Okay, so it’s not only one person; it’s more than one. Okay.

Joe Moscato: Yeah, there’s many markers. I think we have about 15-20 in the box at any

one given time.

Raymond Barbosa: All right, well you’re doing a good job. Keep it up.

Joe Moscato: Thank you very much sir. Really appreciate the call.

Operator: We’ll take our next question from Ann Marie Lee; your line is open.

Ann Marie Lee: Hi Joe, can you hear me?

Joe Moscato: Yes Ann Marie, how are you?

Ann Marie Lee: Good. First of all I just want to thank you so much for your hard work. You

guys are doing amazing job; I’m very, very impressed. And it’s amazing

what a great job you’ve done.

Joe Moscato: Thank you very much for that.


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Ann Marie Lee: Yeah and the question I have is I _____ [00:15:12] share price is very

undervalued. I mean the market cap is only under $200 million but the things

GS has been doing and the vision you guys have, is you know I mean the

share price is totally under _____ [00:15:29]. I mean I can see it become –

your company become like a multi-billion dollar company. So, I’m confused

as why the share price does not reflect the actual value of the company? So

my question is when we _____ [00:15:49] is that going to be like media

covered, like _____ [00:15:54] where the people come to know what a great

job you guys have been doing? And the kind of great vision you guys have

for the company.

Joe Moscato: I thank you for the kind words. We’re an OTC company; so it’s a process.

And the process has been long for us. The last couple of years we had a lot to

deal with and we’ve made a lot of headway. And we acquired a lot of things.

So, what we’ve done is made sense of all the things that we’ve acquired. We

re-organized a lot of the things we required. And you know now we have to

execute on our vision of those pieces to make the whole enterprise.

So you know it’s all about the pieces that make the whole. The whole now is

made, and we will endeavor to execute on building the whole from those

pieces. And we believe that we’re highly undervalued. But of course we’re an

OTC company; so it’s not a stable market like say the New York Stock

Exchange or the NASDAQ stock exchange. So, you’re going to have –

there’s always a good chance you’re being undervalued. Right now, that’s the

whole point of us getting the NASDAQ listing; so we can have _____

[00:17:18] coverage, so when we start you know, building out the

infrastructure that we already have, we’ll be able to get that coverage. And

it’s all about revenues in the future. So yeah it’s all integral steps to get the

NASDAQ listing and then all the things that you have to do such as analyst

coverage, doing interviews, highlighting different formats and parts of the

business that will be building or adding. So, it’s all part of the overall strategy

and plan once we’re listed.

Ann Marie Lee: On the uplisting day, I was just wondering is that normal for the media to

cover this kind of uplisting? Like when they have IPO’s where it’s vastly

covered?

Joe Moscato: The coverage opportunity come far greater once you are a NASDAQ, the

New York Stock Exchange listed company. So we believe once we do get

listed those opportunities will become much more than what we have now.

Ann Marie Lee: Oh yea sure. I was just wondering normally when there’s an IPO on that

particular day there’s a lot of coverage. I was just wondering if uplisting

stocks do we – are we going to get the same kind of coverage, or is this –

Joe Moscato: We’ll get a lot more than we have now. But we’ll have to work to get to those

analysts to tell our story, to show our model and then to fully understand

what we’re doing. We have a lot of work to do with these pieces and right


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now we’re starting to execute and implementing and growing those pieces

out now. So we expect that analysts will start covering once we are

NASDAQ.

Ann Marie Lee: Okay. And the other pieces, the other one that’s going to be _____ [00:19:36]

I can’t remember the name of the company.

Joe Moscato: Nugenerex Immuno-Oncology, which was formerly Antigen Express. Yes, so

–

Ann Marie Lee: So that’s going to be an IPO?

Joe Moscato: No, we’re not going to do an IPO. We’re merging that company into a public

company. And we’re then going to hopefully successfully merge with the

company that we announced, merge with Koromic. Making a very large,

robust immuno-oncology cancer company. So, we expect that to be

completed within the next 60 days. You finalize all the pieces to that go

public strategy, and now we just have to execute and get it all done, which

we’re working on.

Ann Marie Lee: I see, okay. And another question I have is I understand that once I buy – I

can’t sell the shares. I mean I don’t intend to, but if I were to sell the shares, I

will have to give the dividends to the buyer. But what if I wanted to buy

shares? How do I know when I buy on open market, how do I know if I’m

buying shares from people who have dividends attached or from people who

don’t have dividends attached?

Joe Moscato: If someone is selling you shares now, then they have the dividend. I mean

certainly nobody is – certainly nobody has new shares to sell. So yeah, you

would receive the dividend from the person that is selling you the shares.

Ann Marie Lee: So if I were to buy shares tomorrow, and if I just hold it until after you guys –

after the company get uplifted, I would get dividends as well on the shares I

buy tomorrow, is that right?

Joe Moscato: Marshall maybe you’d like to answer that question.

Marshall Shectman: The record date sets the record. The record date was set yesterday I believe.

Ann Marie Lee: Yes, mm-hmm.

Marshall Shectman: The record date was set yesterday; so as of the record date everyone who

owns those shares is going to be with the dividend. Now the reason why they

have an X-dividend date paid after, say two days after of the actual uplift, the

pay date two days afterwards _____ [00:22:22] is two days after the uplift

date is to keep the _____ [00:22:25] market like I was talking about. So that

way there’s not a lot of confusion or your brokers will know which stock is

trading on how it is? But as of yesterday, the record date was set for all of


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those people. And after that you’re going to be trading smoothly, so it should

be traded with everything that it should be trading with. And if you have any

questions about it, buying in the open market please ask your broker for any

particular. Generally speaking if you’re going to go into it and buy on the

open market, it will come with – what comes as of the record date? The X

date is going to be two days afterwards. So it’s X dividend date so it should

be trading with everything, but make sure and ask your broker if you’re going

to be buying on the open market. Was that reasonably clear?

Ann Marie Lee: So I mean my understanding since there’s no new shares, so if I were to just

buy shares tomorrow what would my broker share count, and there should be

dividends attached; is that right? Or, do I need to confirm that with my –

Joe Moscato: I would always confirm that with your broker or whoever your investment

advisor is. But yes that should be the way it works. I mean if someone is

selling you their shares in the open market, and you’re buying them they lose

their dividend and it gets transferred to you. It’s called the due bill date. So

that due bill would be due to you.

Ann Marie Lee: Okay, yeah that makes sense to me. But I just wanted to confirm that with

you guys. I mean I guess I don’t understand why people are selling today.

But yeah –

Joe Moscato: Yeah, maybe they didn’t think I’d get the application in. Unfortunately, we

did get it in and you know, they’ll be upset that they sold it today.

Ann Marie Lee: Okay so I – if I were to call – I mean my brokerage company is ______

[00:24:40] broker, so if I were to call them, they would be able to let me

know? They could confirm that the dividends are attached to the stock?

Joe Moscato: What I would do is talk – try to get in touch with a live person, a broker and

if they don’t have the information for you, every brokerage firm has a

dividend department. So I would ask for them to transfer you to the dividend

department of that brokerage firm, and they should be able to answer all of

your questions about the dividend.

Marshall Shectman: Any shares you pick up in the open market really should be trading with it.

But I can’t speak to each and every transaction. Just to make sure.

Ann Marie Lee: Okay, got it. Thank you so much. Thank you for all your hard work, I really

appreciate it.

Joe Moscato: Thank you so much for the call and again, thank you again.

Ann Marie Lee: Thank you.

Operator: We’ll take our next question from John Finchensi, your line is open.


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John Finchensi: Hi Joe, can you hear me?

Joe Moscato: Absolutely John, how are you?

John Finchensi: Okay, doing great Joe. First of all congratulations to you and your team of

people. I mean from the time that we did the 1,000 to one reverse split I

believe the stock is up something like 1,600 or 1,700 percent. It’s amazing

what you guys did transform a company that was on the brink of bankruptcy.

And so a market cap of $200 million; so congratulations once again.

Joe Moscato: Thank you.

John Finchensi: Joe quick question, when do you expect NUGENEREX, the one before

dividend we got to be listed on the exchange? And do you have any idea of

the –

Joe Moscato: Our whole team, as well as our adjunct team, which is outside counsel, any of

the finance or auditing partners they’re all working hard right now to get this

done. My goal is to get it done within the next 60 days. We have all the

pieces in place. It’s really just getting the audits split out from GENEREX

enterprise, overall enterprise. _____ [00:27:01] and then doing the filing

work. So pretty comfortable and confident that we can achieve

NUGENEREX immuno-oncology being public within the next 60 days,

that’s our goal.

John Finchensi: That’s great. And do you expect the IPO to be like the share of GENEREX

would be at that point? To be listed at that point or do you anticipate a

different price, or is there any way of knowing?

Joe Moscato: There’s no way of really knowing yet. We’re going to build a strategy for the

market makers to put a proper price in. We do have our old appraisals of the

different platforms that GENEREX owns. We’re hoping to get a couple

appraisals done on some of the platforms that Koromic owns. But let’s just

look at breast cancer. You know we have our partnership now at Merck with

Keytruda. We’re looking at a potential partnerships. We have one in prostate

cancer. When we – back in 2010 I believe if I recall. Marshall Stevens had

done a very detailed appraisal of just breast cancer. That came in well over

300,000,000. We announced that. We put that out back then. So you know if

you want to have some kind of a starting point we didn’t have a partner back

then. The asset was valued by them at well over 300,000,000 just for breast

cancer. Now with a big pharma partner, I can’t imagine it being less than that.

So you know we’ll build a case. We’ll put together the necessary package to

get the best price we can from those market makers once we do go public that

day.

John Finchensi: And just one last question, you said we applied for the uplisting to the

NASDAQ, and generally speaking takes at least 30 days. So you anticipate


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that maybe sometime in September if it’s approved that we should be uplisted

to the NASDAQ?

Joe Moscato: Yeah to me the sooner the better. But it’s typically 30 days after you put the

application in. But you know you have to discount that there could be

questions. There could be supporting documentation that the person doing the

review may want to see. So, you know our estimate is 30-60 days, we believe

we’ll have our answer. And we believe that that answer will be listed.

John Finchensi: Okay great. Thank you very much Joe, keep up the good work.

Joe Moscato: Thank you very much for calling in.

Operator: We’ll take our next question from Christopher Salvo, your line is open.

Christopher Salvo: Hi Joe, you’re doing great. I think you’re building a power house based on

everything that you’re putting together. I have a couple of questions. One is

the GENEREX still has no value. Is it going to show a value eventually?

Joe Moscato: Like I just said with the last caller, we believe that within 60 days GENEREX

immuno-oncology will be public. And that’s when the value, and you will

have those public shares. So you know it could be before 60 days, but I

would say on the outside it’s going to be 60 days that will be public. And

you’ll have your value, and you’ll have your trade-ability and liquidity. And

being able to trade that stock. So, hang in there.

Christopher Salvo: Good all the people that you’ve accumulated the Karen Brothers I think they

were, they assume to be a fantastic group. Are they actively working on the

uplisting and so forth, apparently they are. And also are you planning on

producing an HMO?

Joe Moscato: Well we’re planning on developing an HMO, an MSO. The specific market

that we have a partnership with multi-group of doctors. And we’re planning

on putting ophthalmology and podiatry in those big clinics. And then provide

MSO services. And then later on start an HMO while the MSO is going on.so

the application state by state varies. But to apply for an application for an

HMO takes about nine months. And we will put the application in once we

start the MSO.

Christopher Salvo: Your MSO, your medical service organization you have physicians already

listed on that organization?

Joe Moscato: There are not just in the clinics with the patients that we’ve made a

partnership with; yes.

Christopher Salvo: Are those clinics, are they known to the public and to us?


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Joe Moscato: No, but they will be once we finalize a few more initiatives on that whole

situation.

Christopher Salvo: Now I believe that what you put together is going to really fly very high, very

big. I think you’ve got all the basics there. It’s just a matter of making them

work together as a unit. I’m going to jump ahead, way ahead because you’re

not listed yet with the NASDAQ. I’m going to ask you that once you are

listed with the NASDAQ, will you still have the same symbol? And also will

they be optionable?

Joe Moscato: Will they be optionable? That’s a good question that we haven’t really

thought about the options or any of the other derivatives they involve. I’ll

have to definitely get back to you on that one, unless Marshall maybe you can

answer to anything –

Marshall Shectman: So in order to qualify for options, our stock has to meet certain criteria on it.

Price, volume, things like that. Once it meets all the criteria, then I would

imagine the options will be traded on it. Although these are all future events

based upon speculative things. But I would imagine in the normal

progression of events there probably will be at some point.

Christopher Salvo: I understand. I have to say that I once you are listed on the exchange you’ll

probably have half a dozen analysts looking at your company. And I can’t

wait for that moment. Joe, I want to thank you all for your efforts. You did

very well. And I’m looking forward for it to continue. Thank you very much

Joe.

Joe Moscato: Thank you very much sir. Really appreciate your kind words.

Christopher Salvo: Bye bye.

Operator: We’ll take our next question from Ken Prill, your line is open.

Ken Prill: Hi Joe.

Joe Moscato: Hi Ken, how are you?

Ken Prill: Good, I’m still in love with you.

Joe Moscato: That’s great; I love you too.

Ken Prill: Say in your travels in the people that you’ve been meeting with, have you got

any feeling for, as far as what institutions are interested?

Joe Moscato: Well just like any good public company we make our rounds, and we’re very

communicative with institutions and varying types of funding sources. So as I

always say, the more you execute, the more communicative you are, the more

interest is always given. It’s just a matter of time before you know everybody


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understands what we’re doing. And once we’re complete and really start

showcasing the overall enterprise of the business. You know opportunities

get better and they just keep getting better. And a lot more people notice what

you’re doing and then you start getting calls rather than you call people.

We’re taking one day at a time in regards to how we get the exposure

necessary to get best opportunities. So, it’s important for us to just keep

executing and everything comes to you in good time.

Ken Prill: Well I’ve been waiting 10 years for this to happen; so I’m a little tickled pink

here. How are the _____ [00:36:43] sales going?

Joe Moscato: Excuse me?

Ken Prill: The mesh sales?

Joe Moscato: Oh you mean the old regent product Salagen. I have _____ [00:36:56] right

here and I’m sure he’d be happy to give you an update. So again, that product

to me is one of the best in class and we are focused on commercializing that.

And Tony and his team are just terrific and I got to tell you that, we have

high hopes that being a huge revenue source for GENEREX well into the

future. So Tony, please if you would.

Tony: Thank you for the question, I appreciate it. About the mesh product and you

know that product is in development. That has not even begun selling yet.

And we’re working diligently towards developing the product. But, since our

last update you know we continue to execute against soft commercialization

plan around Excelegen and we’re also building out the pipeline of best in

class solutions for these hard to heal wounds. So sales itself, just started. And

as I said we recently sponsored a large conference where _____ [00:37:59]

the American Podiatric Medical Association annual symposium in Salt Lake

City and certainly the organization represent a vast majority of the estimated

18,000 podiatrists in the country. And approximately 1,500 members

attended that event. And during that event we held a symposium. We hosted

a dinner where we had over 100 podiatrists in attendance and Dr. Lois

Chandler, Senior VP of Scientific Development in the _____ [00:38:30] the

technology presented the clinical data from our randomized control clinical

study. And then we hosted a Q & A session with the audience. And the

audience was very pleased with the results. And we got a lot of great leads

that came out of that.

So, as mentioned during our last call, last month, you know we anticipated

receiving the official seal of approval from the _____ [00:38:55] for Salagen.

Well the great news is that we did receive this procedure seal of approval,

based on the positive results from that particular randomized clinical study.

So when we proudly displayed that seal at the APMA booth and we

generated over 200 leads, which we now have our sales force and the team

focused and follow-up with those individuals.


Page 13 of 29

Ken Prill: Are they all trained now?

Tony: They’re all trained. They’re all certified. And they’re geared up and ready to

go; yes. But you know it’s a process. As I mentioned the last month, part of

that sales process was gaining access and driving revenue for both the VA

and the commercial hospital and getting product approved through value

analysis committee. All – I think I said often referred to as the VAC. And we

continue to drive those opportunities through the VAC and we’re starting to

see success through the Excelegen clinical data and favorable economic

outcomes. The VAC process could take between three to six months or

longer for approval. Good news is we’ve already got approval within less

than 60 days and several VAC’s and we have started selling to those that

have approved, the sales are going very well.

But more importantly _____ [00:40:11] mesh, you know as it relates to our

pipeline; we’re planning to launch our next product which is a surgical cover

dressing sometime in early Q1 2020. And then the mesh will follow that. So

we believe with technology that we’re developing we can offer additional

benefits over the current products in the particular category. We’re in the

final stages of developing and we’ll share more information in the coming

months.

Ken Prill: I guess I was of the understanding that you guys had already had a contract or

whatever with the VA for this product.

Tony: That’s Excelegen, the mesh –

Ken Prill: Okay.

Joe Moscato: The whole region has many different products in the pipeline. One is

approved and ready to sell and we’ve been selling is the salagen product. The

mesh product and some of the other products still in development.

Ken Prill: So based on our current market cap is there any value you can stick on a

stock that says okay it should be selling for $6 or $10 or whatever for – based

on the market cap?

Joe Moscato: Again, we’re an OTC company so it’s –

Ken Prill: Understood.

Joe Moscato: Unstable market and sometimes it doesn’t give you fair representation on

what your real value is. We believe that over the next coming quarters, more

valuably realized and as we make our way to a larger exchange that value

will be unveiled more and more.

Ken Prill: Well I’m glad I pulled the trigger on more stock two days ago.


Page 14 of 29

Joe Moscato: There you go.

Ken Prill: You guys are doing a great job, thank you very much.

Joe Moscato: We thank you for your question.

Ken Prill: You bet.

Operator: We’ll take our next question from Nick Lupus, your line is open.

Nick Lupus: Hi, I have a very straightforward question. How many shares of

NUGENEREX immuno-oncology will be offered when it goes public?

Joe Moscato: How many shares will be offered, you mean to the public?

Nick Lupus: I guess how many shares are going to in circulation?

Joe Moscato: As of right now the only circulation of shares would be the shares that we

distributed in the dividend to GENEREX shareholders. Right now we just –

we have our agreements in place for the merger into the public vehicle. And

we haven’t decided or we don’t even have a board yet together to design

what the security structure will look like in the new public company. So that

will be done in the coming month. I have a better answer for you in a month,

it could be 100 million shares total, it could be 50 million shares total. That

all comes from how we architect the structure will be. We haven’t decided

any of that yet. We concentrated on finding the best vehicle, best opportunity

to take GENEREX immuno-oncology public. We believe we found it and we

signed the agreement with that company to go public. So more and more will

be unveiled. Within the next 60 days my belief is this will be public and

you’ll have your answers.

Nick Lupus: Okay, so there’s still some work to be done determining how many shares

will be in circulation. I didn’t know if that was already predetermined but it

sounds like you still are kind of ironing that part out.

Joe Moscato: Yeah, it’s similar to when we took over brought a new management team

place at GENEREX. We had to have annual meetings. GENEREX had no

shares after the stock split. To reverse, to clean everything up. So we had to

go to the shareholders, we had to do a proxy. And we had to figure out how

many shares we wanted to have available for all the initiatives that we wanted

to do in the future. So it’s pretty much the same process. A little bit different,

but the same process. And we’ll never get that done over the next 30 days.

Figure out what exactly we’ll need to the future.

Nick Lupus: Good thanks.

Joe Moscato: My pleasure, thank you.


Page 15 of 29

Operator: We’ll take our next question today from Eve Frasier, your line is open.

Steve Frasier: That should be – is that me?

Joe Moscato: I can hear you.

Steve Frasier: I’m sorry; this is Steve Frasier, not Eve Frasier. I don’t know. How are you?

Joe Moscato: How are you doing?

Steve Frasier: I’m doing all right. You know me; I always got some questions for you. So

back to those – a couple other callers asking about the share, who gets the

dividends. Back on June 20 if people go back and re-read your press release

from June 20 where it says GENEREX declares one for one stock dividend.

You’re pretty; you did a great job in there explaining who gets the dividends.

And that people, if they go back and look at that they’ll realize if they still

buy tomorrow, three weeks from now until the day after – well has to settle

by the day after you go uplist. They will get the additional shares; so just

everybody knows.

As far as the shares, when you do the uplist, there’s going to be all said and

done about 69 million shares I believe has been the number that’s been

thrown around?

Joe Moscato: Yeah, we’re going to retire the pool that everybody knows about, that’s about

21 million shares that we retire. So right now we have a little bit more than

say 21-22 million shares in the float right now. So that will bring us up to

about 43 million shares totally out. And you know with the retirement of

shares, about 69, 68 million total even with the new take out of the 3.1

million in that _____ [00:47:41] that we just took out last week. That was a

great deal for us.

Steve Frasier: Absolutely.

Joe Moscato: And $2.81, you know it goes against our shareholder equity. It’s been on

there for a long time, get rid of the liability. We got rid of it. And you can’t

get any better than that, doing it at market.

Steve Frasier: I guess the reason I was asking to get a run by way – I think the talk was that

the dilution effect will only be around 9 million shares, which is maybe

around 13% or so after you do the uplift. So the – you’re going to get double

the number of shares, but you’re only going to get diluted by about 13-14%.

So ultimately people are going to have – theoretically if the price were say $4

on the day you uplist, and you were to get the times 60 and divided by 69; so

basically price to come out to be around $3.47 after the uplist, you have twice

as many shares. People are going to have about a 70-75% increase in their

value. If it all holds.


Page 16 of 29

Joe Moscato: Yeah 75-80%, for new shareholders 75-80% increase at the price you named

the stock would be. Overall if you factor in that’s 80% on the number you

gave, and if you say own stock since September of last year, which is only

nine months ago, you’d be up about 3,000 percent so far.

Steve Frasier: Right, exactly – no, I’m just talking about anybody that owns – buy shares

like – the uplisting price. So the price the day you uplist is $4 just for a

number, ultimately people are going to have the – people are going to have

double the amount of shares, but the price is not going to get cut in half to

two. It might only go down to $3.50.

Joe Moscato: And then there’s always the factors of what does that do for stock. What does

the liquidity bring? What does the analyst coverage bring? There are many,

many factors that go into will happen. But listen it’s very simple, we

designed all of these programs to give back as much value as we can to our

shareholders. I promised this way back when I took over the company in

January 2017. We did a very harsh 1,000 for one diverse stock split back

then. It needed to clean up the company, shareholders allows us to do that. I

promised that we would take the shareholders with us if we were successful.

This is the last dividend. The overall plan that I put forth and you know me,

myself and the three other individuals that make up that big pool, we’re

retiring shares. So I’m taking away from normally the people who always get

shares. And I’m giving them to people who always never get shares, which

are my shareholders.

Steve Frasier: Exactly. You did a phenomenal job. I’m very, very happy. It’s been a long

run since you and I met up in Toronto. I was just reminiscing today as a

matter of fact. We met back on July 28, three days from now back in 2010

when you and myself and a few others met up there at the annual

shareholders meeting for GENEREX in Toronto. So I’ve known you now for

nine years Joe. So I’m just reminiscing about that; that’s a long time my man.

Joe Moscato: Listen you met me when I was just a consultant for the company. I wasn’t an

employ of the company and I certainly was not in any managerial capacity.

I’m happy that things have worked out so well. I believe they’ll continue to

work out well.

Steve Frasier: The thing that I was going to say is that you were so – you showed a little

shareholder like me and a couple other small shareholders, you gave us time

up there that no one else would have given a small shareholder like us the

time. So that’s kudos to you. You had a couple big hitters up there, and you

actually spent time with us showing us around the home office and whatnot.

So Joe that tells so much about your character; so just keep that up there. I’ll

just leave that there.

Let’s go back to the merger for NGIO, NUGENEREX immuno-oncology.

You find a letter and then the few weeks that will become a little more

public, the company is I guess that you’re going to merge into. At this point I


Page 17 of 29

know you said the other call you don’t have a share structure, how many

shares whether it’s going to be 50 or 100 outstanding when you finally go

public and do everything you need to do. I know shareholders, I think the

shareholders back in February they gave us the NGIO shares, or the _____

[00:52:59] for that, 7 or 8 million shares outstanding right now. What do you

see those GENEREX, the percentage of GENEREX themselves, GMVP

owning of the overall – after the Koromic merger and then merging into this

Shell company to go public with them, or be public? To go up to the major,

larger, what do you openly think GENEREX is going to own of that? At

which case obviously we own shares of GENEREX, do you think it’s going

to be like a 70%, 80%?

Joe Moscato: It will be as much as possible. I’m not going to give up control of the

company. It definitely will be at least 51%. You have to understand that

between the appraisals we have of the actual assets we own. Not counting

anything from the merger, potential with Koromic. GENEREX has put in

let’s call it $50 million over the last 10 years into NUGENEREX immuno-

oncology. So for sure we have a value of $50 million plus whatever

appraisals we have of all. Then we decide on updating them with that

appraisal company that only does pharma appraisals. That’s how you derive

the value. So it certainly won’t be anywhere near what GENEREX has in its

treasury, which is – for when we start 750 million shares. So, I don’t know. I

don’t have an answer for you.

Steve Frasier: Whether it’s’ $50 million, $100 million I was just curious as to what

percentage you think GNBP might still own of the company after it’s all said

and done?

Joe Moscato: I would be guessing. If we only put 100 million shares into the treasury then

maybe I only own 50%. If I put 200 million, maybe I own 60% of it. If I put

300 million, maybe I own 70%. So there’s no way I can answer that question

until the work is actually done, which we’re doing. And you know, again our

plan we believe that this is a high asset for us. We believe once it is taken

public GENEREX ownership in this company will be hundreds of millions of

dollars in value. That will hit our balance sheet in a huge way. And it will hit

our overall value in a huge way. So obviously I want it to be as much as

possible, but I want it to be as real as possible. So we have some work to do,

but everything moves in conjunction with each other. So right now, if I put

400 million shares into the treasury and GENEREX owns 50 million of those,

then I only own 25%. I don’t know what the number is going to be yet. We

working on that. But, GENEREX will still have a big say in what goes on in

the company even after –

Steve Frasier: Obviously for lack of calling it a _____ [00:56:39], if it’s NGIO, for NGIO

will there need to be some – an investor to come in and give you some startup

capital? Obviously the company needs some money to run on, so are they

going to get that funding from GNBT somehow? Is there going to be another

company that’s going to – investor come in and buy a little piece of the


Page 18 of 29

company or it look to maybe partner up with some pharma company to get a

little money in there.

Joe Moscato: It could be any of the above. Let’s just put it this way. NUGENEREX

immuno-oncology is clean as a whistle company. So unlike GENEREX and

what we’ve had to go through in the last three years to clean this company up

completely, bring it out of dormancy, get credibility back in its own assets.

And then to build that credibility into where now we’re acquiring other

assets. And now have a huge opportunity in building an enterprise. You know

that was a lot of work.

Here, you know I think it’s much, much easier to raise money with

NUGENEREX immuno-oncology because it’s a brand new company and it

will be a brand new history with it, on the public side. It would be any hair on

it whatsoever. So again, I can’t speculate on any of the four or five different

things that potentially could happen that you had mentioned. But it will all be

unveiled once this is public in 60 days.

Steve Frasier: Okay and two last questions and these are easy, these are really easy. Annual

shareholders meeting, do we have a date yet? Do we have a place?

Joe Moscato: Great question, we definitely will be having one. We’re required to do it as a

NASDAQ company; so it’s important that we do one soon. But maybe Mr.

Shectman man, since I gave him a directive to get that done very soon, can

add something to that. Marshall?

Marshall Shectman: Directives to get something very soon. It’s happening at a breakneck pace.

Joe Moscato: I would anticipate Steve that probably in the coming weeks there’ll be a

notice to shareholders that we’ll have an annual meeting for sure.

Steve Frasier: Okay so probably most likely we’re looking at sometime in late September,

maybe October?

Joe Moscato: If I could do it sooner I would. There’s just so much stuff to do. Yeah, that

seems fair.

Steve Frasier: All right, no problem. And I don’t know if you have a location yet that you’re

thinking about holding it? Is it going to be in Florida where you guys are? Is

it going to be someplace else in the country?

Joe Moscato: Unless you’re offering your home it could very well be –

Marshall Shectman: I think the current plans for it are to be online access with some streaming,

but not have a giant physical footprint to cut down on expenditures. These are

the discussion we’ve been having. We’re looking at October but yeah, unless

there’s a ground swell of people that want to show up, that’s the way we’ve

been heading in.


Page 19 of 29

Joe Moscato: Steve GENEREX used to have those things all the time. Other than a few

consultants like myself that would some and then the real die hard

shareholders like yourself that would come. It’s a big expense. I’d love to

have one if people really showed up, that’s for sure. I remember one year

GENEREX threw it at the Hyatt Hotel and rented out the whole place. And

we had thousands of seats and only the first five or six rows we used. If we

could do it, it would either be Florida or New York; I’d love to have one

where everybody can come. But we’ll see.

Steve Frasier: Okay no problem. And last question and this is a very speculative one here.

New York Stock Exchange, obviously it posts its own pictures and it’s

obviously common knowledge I guess you guys and _____ [01:00:59] were

at the New York Stock Exchange a few days ago. Any update as to a charity

event or was it _____ [01:01:11] just don’t show up and they let you in the

door.

Joe Moscato: It’s amazing how people find things out. I post a couple pictures on my

Facebook.

Steve Frasier: And Twitter –

Joe Moscato: I didn’t put anything on Twitter – that’s for the other guys. Always a novelty

to go to one of the most prestigious places in New York and see, you know

that old establishment. And how unbelievable it still is and you know it’s just

amazing to witness it all. And it’s nice to go down and meet market makers

and see how the new – how it’s changed over the years. For us it was just

going down and doing what companies need to do, which is be

communicative to all your audiences. It was important for us to go; we went,

had a good time and enjoyed ourselves. And some day – that may be our

future going to the New York Stock Exchange big board one day. So –

Steve Frasier: Again, I remember the time that you – and we went to just one life charity

event at the New York Stock Exchange after hours and that guy _____

[01:02:33]. Just asking if there was another charity event, that’s all.

Joe Moscato: That was the year I won the Man of the Year award. That was the only time I

was right by that bell to potentially ring it and unfortunately shut off –

Steve Frasier: Hopefully you get the opportunity again.

Joe Moscato: I actually got my award in that vestibule where you ring the bell and it was

kind of exciting. I just couldn’t ring the bell.

Steve Frasier: Hopefully you’ll get that opportunity when NGIO, it’s not exactly public but

when companies get uplisted, sometimes they’re invited to come ring the

bell; so maybe we’ll see you there instead of the prior people who got to ring

the bell.


Page 20 of 29

Joe Moscato: We’re a brand new company now, other than some legacy assets. Now we’ve

even got rid of nine year old debt that pertained to the days of old. As far as

I’m concerned its oil and vinegar; they don’t mix and for sure those days of

old are long gone from where GENEREX is today.

Steve Frasier: Absolutely. Well thank you. I’ve taken up enough of your time. I do

appreciate it and look forward to everything that you got accomplished and

continue to get accomplished going forward.

Joe Moscato: Thanks Steve. I really appreciate the call and always the best.

Steve Frasier: Thanks.

Operator: We’ll move next to Joe Kanig, your line is open.

Joe Kanig: Joe Kanig here.

Joe Moscato: Hey Joe, how are you?

Joe Kanig: Good. A couple questions, any contact from any business schools, NBA

programs to study your story?

Joe Moscato: No publisher yet has called to write a book or no school is coming for a case

study on what we’ve done so far. I think we need to finish it, which is get this

NASDAQ listing and then that’s always in the cards, right?

Joe Kanig: Absolutely. And I think you should because it’s a story that the schools need,

somebody who is looking out for the shareholders. And everybody benefits,

so I think it’s a wonderful story. So don’t downplay that; that’s a good one I

think.

Joe Moscato: I believe it to. I believe you take care of your shareholders; everything else

takes care of itself. I think it’s probably one of the most important things you

can do if you’re a public company. For us so far, doing that – doing what we

do makes people happy. Makes us happy and it makes our job a lot easier as

we execute more and more.

Joe Kanig: Of course it all depends on your success. But if you’re successful I think it

will be something that they’ll be pounding your doors for, so it’s a good

story. Okay my second question is your health Joe is very important to us for

many reasons. Tell us about your health, how are you doing?

Joe Moscato: My health, doing much better than I was doing, that’s for sure. My

cholesterol is good. My wife takes very good care of me, that’s for sure. She

feeds me very well. But overall I am doing quite well, thank you.

Joe Kanig: All right, good Joe. Hang in there. And looking forward to great results.


Page 21 of 29

Joe Moscato: Thank you very much, I appreciate the call.

Joe Kanig: Okay.

Operator: We’ll move now to Richard Proctor, your line is open.

Richard Proctor: Hi Joe, can you her me?

Joe Moscato: Yes Richard, how are you?

Richard Proctor: I’m doing great. Listen first off I want to say thanks for all you’re doing. I

dropped my call, so if I am redundant, please forgive me. You said you were

going to file for our uplist tomorrow?

Joe Moscato: No we gave our complete package to our firm that’s representing us for the

listing. We paid the application fee directly to the NASDAQ today. So –

Richard Proctor: Is that the official PR that uplist? Is that going to be a thing or is that

something that goes low key?

Joe Moscato: We’ll probably announce that we put the application in and that we paid the

fee. And then we’ll apprise everybody along the way if there are hiccups or if

it’s going to take a little bit more time because they may have asked

something. We’ll keep everybody posted. Hopefully it’s a smooth process. If

it’s not, we’ll let everybody know what’s going on. The application is in, so

you know they have the right to ask questions. They have the right to ask us

for supporting documentation or want to see different things. So we’re fully

prepared to answer any questions or –

Richard Proctor: Have to wait and see what kind of feedback we get.

Joe Moscato: Yeah we’ve had our own internal reviews. We’ve had our consultant reviews.

And we feel very strongly that we’ll be successful in this endeavor. But it’s

all about the NASDAQ and their investigators to evaluate everything and get

back to us on what potentially they may want, in addition to what we

submitted.

Richard Proctor: Okay good. The next question is I heard it was like a Corvette where you can

start it and stop it. I know you had approval in five states, is our MSO

running and producing revenue? Or is it still shut down?

Joe Moscato: It’s never shut down. Our MSO is made up of doctors, right? So you know

let’s take a look at what we’ve put together, right? This is really important

that people understand. So let’s look at one segment of the population. So

let’s look at podiatrists, right? So we want podiatrists to be in our MSO.

Why? Because now we have a full complement of services, equipment and

treatment available to those doctors. Podiatrists will get a type I diabetic, who


Page 22 of 29

has diabetic _____ [01:09:40], right? And a diabetic _____[01:09:44] may

damage the bone, so first you got to treat it and clear up the tunnel, the tunnel

wound as well as the ulcers. So you have treatment with the old Regent

product. Then you have to fix the bone. So it may be a toe kit or it may be an

ankle kit that’s needed. So we bought manufacturer that makes the kits, right?

And then post-op – pre-op and post-op pharmaceuticals that that patient

needs as well as scanning. So we now can provide a total solution for that

podiatrist for their patient, right?

They have the hardware, they have the treatment, they have the drugs pre and

post. And they have the scanning ability to now see the imaging. So we

provide all that to those patients for those doctors. And you know we moved

away from the old model, at which that company operated SMSO. We hired

premier law firms to help us make a much more compliant MSO structure.

We’re moving those doctors into that new structure, and that means going

from a cash based business to a stock based business. And giving these

doctors now ownership in GENEREX and not paying them any money at all.

So, it’s a process, but you know as long as you have the product, you have

the services and you have all the different things that we can bring to those

podiatrists to care for their patients. They’re going to use our stuff. It’s pretty

immediate. If they’re in our MSO to turn it on and off. You never want to

turn something off if you don’t have to. But again if you turn things off, your

only asset, which we do that asset once turned on and much more highly

compliant will only render more value later on for us. And maybe Terry you

might want to add to that. Terry Thompson my COO who runs that whole

MP for me, please Terry –

Terry Thompson: The MSO network is made up of surgeons. And offering products to them to

go in many different directions whether it be pharmacy items. But when we

looked at it the main thing was a lot of pharmacy items are under price

pressure, and we’re looking for higher margin types of products to bring to

them. And you know with _____ [01:12:53] as an example and some of the

surgical and other products that we’re buying, we’re going to be offering

through our own sales channel direct to the doctor for the benefit of the

patient. These products, in a compliant way in that they would be basically

given a discount code to buy these products through the McKesson Channel

or whatever distributor is set up, whichever company is doing it. And that’s

where they would actually benefit from being an investor in our MSO. So in

the past they would make a case investment in MSO and they would share in

the distribution of profits on a monthly basis. Whereas ours is going to be –

they make an investment in GENEREX stock with restricted for three years

and during that time period they’re going to help us along with our

shareholders and build our revenue line. So that’s where we’re heading with

the MSO.

Richard Proctor: And doctors to buy into that – you think that will be a sellable – waiting three

years for their profit.


Page 23 of 29

Joe Moscato: Building huge value on the back end and then being able to deliver deep

discounts on being part of our network on the products that we now own. It’s

huge because I don’t have to pay a doctor cash, what I do have to do is

provide the things he needs to provide the best service and the best treatment

paradox to the patients. And if I could do that, part of my MSO a reduced

rate, then everyone benefits.

Richard Proctor: What I’m looking at is this company that you are forming is in need of cash.

And I see some financing, and I’m not a financial guy. I’m completely

ignorant, but I see some notes that are at a 30% discount that you can sell –

Joe Moscato: Every OTC company needs cash, especially a company like ours where we

have so many great stuff going on. We’re commercializing, we’re doing so

many different things. So for me if – let me put it to you this way. If I have a

product that costs me $100 to make. And then I’m making $5,000 on that

product. If I have to give up a little something to make that product because I

need money, giving up 30% but with no strings attached, because there are no

strings attached. There are no downside protection function sin those notes.

But as I have said earlier in the conference call, I paid off two of them

already. I will be paying off another one next week in cash. So you know for

me, everything solves itself with sales.

Richard Proctor: I’m watching stock price go up and then I see it get hit with 50,000, 60,000

shares and I’m wondering if those are people that are unloading cheaper

shares just to make the profit.

Joe Moscato: No, not at all. There’s nobody that has any shares from any notes. No one has

gotten any shares from any notes. Any shares that potentially could come in

any market, and again I haven’t given out a lot of shares to anybody. So any

shares that could come in the market would be restricted. I have no

registration statement approved. So I don’t believe it would be any shares

coming into the market of any kind of significance for a long time. I haven’t

given anybody any.

Richard Proctor: It’s almost like a dream; too good to be true. I’ll hear the story and I’m

looking for where’s the crack in this because it can’t be – there’s nobody out

there that’s going to put the shareholders first. This has got to be a thing

where if you look on the other side there’s the catch. But I don’t see it and

thank you. That’s all I got to say.

Joe Moscato: Don’t take my word for it. I’ll instruct our TA _____ [01:17:22] you want to

call them and ask them if anybody has ever –

Richard Proctor: I’ll take your word for it Joe. You seem to be that kind of guy. So I’m just

going to go with my gut –

Joe Moscato: Appreciate that.


Page 24 of 29

Richard Proctor: More cash, I’ll buy more stock.

Unidentified male: Joe just as clarification on this. This morning there was some – there are

some instruments out there that are convertible and just this morning there

were some conversions. They like what’s going on and they want to

participate.

Joe Moscato: But they’re restricted shares. I just said free trade shares. Restricted shares

are completely different than free trade shares.

Unidentified male: There is a mechanism for them to go free trading on it.

Richard Proctor: The game is played the way it’s played; so you got to bet against it. So that’s

good. I pretty much got what I came to hear _____ [01:18:17] other than I’m

pleased with what you’re doing and I hope this thing works out for

everybody. The last question I asked in a conference call was to Anna _____

[01:18:27], you know? I’m good with what’s going on and I’m hoping to see

a big change here.

Joe Moscato: All I can say is I’m in New York and like I said, if someone tried to convert

something again, it’s only going to be restricted shares because there is no

registration. Again I appreciate the call, thank you very much.

Richard Proctor: Thank you Joe.

Operator: We’ll take our next question from Bill Thomas. Your line is open.

Bill Thomas: Hey Joe how you doing, Bill Thomas here on Staten Island. Listen Joe I just

want to offer my house up for the shareholders meeting.

Joe Moscato: I may take you up on that.

Bill Thomas: I want to make another suggestion, shareholder meeting. How about we have

an outdoor, open air event, make it a barbecue. I think we’ll get a lot of

people.

Joe Moscato: I was going to ask you if you had a barbecue; you got a grill?

Bill Thomas: Absolutely. Listen Joe I just want to tell you you’re doing a great job. You

always have been and I really appreciate it. Thank you very much. And you

know just keep it up guys.

Joe Moscato: I really appreciate the call and my number is on all the materials or on the

website. Call me and I’ll talk to you about how the _____ [01:19:58] is really

serious.

Bill Thomas: No sweat brother, and I’ve talked to you a couple of times. Everybody have a

great day man.


Page 25 of 29

Joe Moscato: You too, thank you.

Bill Thomas: Thanks bye bye.

Operator: And we’ll move next to George Alberg, your line is open.

George Alberg: Hi good evening from good old Germany. One important question, I cannot

exactly recall the time of the last content call where you mentioned this, but I

think it was sometime in February or March where you said that you were

about to acquire a chain of walk in pharmacies. And this was supposed to be

done in the next seven days after the conference call. And ever since I’ve

never heard anything about it. I wish I would get an update from you on that

venue.

Joe Moscato: Oh yes, that’s still very much in play. We audited completely – it took over a

year to audit it. And so right now what we are planning on doing and we still

have every intention of moving forward with that acquisition, as well with

other acquisitions that we have in the pipeline. But the decision was made to

get this listing done, get back to NASDAQ. Our capital becomes a lot

cheaper and a lot more beneficial in how it’s given to make those acquisition.

So you know raising significant money on the OTC is something that I’m not

very fond of doing. Because the conditions of the money always a little bit

more stringent than if we’re a NASDAQ company. So we will be making that

acquisition. I believe I said from that last call that we should have the audits

done in a week or two weeks, which we did do. We just now chose based

upon the market conditions to get the listing first. And then go out after the

necessary capital on a much more amenable terms to make all of our other

acquisitions. But as a big part of our plan, a nationwide pharmacy footprint

and our intention is to close that transaction soon.

George Alberg: Okay that means you still has some sort of an agreement with this company

that you would be the first to buy the company and not anybody else in the

meantime?

Joe Moscato: Of course I do. Yes we certainly do.

George Alberg: Okay, thanks a lot.

Joe Moscato: Yes thank you.

Operator: We’ll move next to Jacob Kaufman, your line is open.

Jacob Kaufman: Thank you. Hi Joe.

Joe Moscato: Hi.


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Jacob Kaufman: You’re thinking about going forward before it goes public, not public but

NASDAQ. One buys the shares thinking one for one additional shares. So

many people ask the question but it never became clear one thing, in the past

before this whole thing went forward, you said that you would have to get a

_____ [01:23:27] from major shareholders who not get additional shares. Is it

possible that they’re going to be the one selling the shares tomorrow? Which

have no dividend attached to them?

Joe Moscato: No because we have all of the necessary waivers from everyone. Take a look

on Friday when we announced taking out $3.1 million in debt. Even that

individual waived the dividend.

Jacob Kaufman: They are not getting dividend. But can they sell the shares tomorrow

anyway?

Joe Moscato: No, they’re restricted shares –

Jacob Kaufman: So whatever shares are sold tomorrow, are going to be shares who are getting

dividends and they will lose the dividends if they sell?

Joe Moscato: Let’s put it this way, right now we – we’re not very liquid. We trade 50,000

to 150,000 shares per day. Some days we trade 50 shares a day. So the 22

million shares that we have out today, we still don’t have an effective market

or an effective trading market. So you know liquidity is key in any public

company. But execution would – that liquidity is key. So we have a way to

go before this is the diamond in the rough so to speak on how liquidity gets

down. Liquidity will come with the NASDAQ listing. My guestimate is

liquidity could go up as high as five, six, seven, eight times what we have

today.

Jacob Kaufman: I wasn’t worried about that. I just want to make clear one simple thing, and

that is that the shares are sold between tomorrow and the day it goes to

NASDAQ are not going to come from restricted shares. So whatever it comes

into my hands –

Joe Moscato: I have no idea how anyone could sell restricted shares.

Jacob Kaufman: You know who owns them and you know how legally they are locked in. so

if you are saying it’s impossible, then it’s impossible.

Joe Moscato: On restricted shares it’s impossible. As far as the –

Jacob Kaufman: It just came to my mind. If I get those shares I could short the shares and

eventually replace them with the ones I couldn’t sell and later can sell.

Joe Moscato: Don’t make me catch you; because I’ll catch you.

Jacob Kaufman: It’s possible to catch with that.


Page 27 of 29

Joe Moscato: Is it possible?

Jacob Kaufman: They would get caught doing that.

Joe Moscato: The best way of catching a shorter is executing right? So if you short me

down and then I execute in front of it, now you’re caught holding the bag.

And it just cost you a fortune. I like when shorter try to play with me. I will –

Jacob Kaufman: No what I mean was if I have restricted shares. And I shorted the stock, and

then replace those shares eventually with CP shares, would it be another way

of getting around restriction?

Joe Moscato: I don’t know how you do that because today –

Jacob Kaufman: I never done it, but I’m just trying to protect myself tomorrow buying more

shares and not getting –

Joe Moscato: All I can tell you is there are new rules about shorting. There are new rules

about shorting; the time frames at which you have to deliver stock today are a

lot different. So you know if you have restricted shares, and you know you’re

two months out, three months out, five months out or six months out before

that restriction can come off, I don’t know how anyone can short that. And

then even feel good about that. Because if they don’t get it unrestricted –

Jacob Kaufman: Okay another question related to the same thing. Joe when restriction comes

off you would be the one who would finalize that removal or restriction,

right?

Joe Moscato: I would imagine that – let’s put it this way. I would imagine and I believe, it

hasn’t happened yet. I believe that any time stock would be coming up under

rule 144 with restriction off, that our transfer agent would be calling me and

verifying that it’s okay to give them that stock, once they printed all the

documentation necessary to get the restriction removed. So that hasn’t

happened yet at all, since I’ve been the CEO of this company. So I don’t – it

hasn’t happened. I don’t know how to ask it.

Jacob Kaufman: So basically It would be easier for me or anybody else like me to know when

restriction coming off or have announcement of restriction coming off to

know that there’s going to be a flood of shares and so on. But I’m not sure if

that’s part of the deal.

Joe Moscato: A flood of shares. I don’t think anybody has got enough shares to flood

anything. And –

Jacob Kaufman: You used to have a lot of shares and you gave up or something like that, but

there are other who have kept the shares and they are not _____ [01:29:20]

the dividend. A few guys who have a few million shares.


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Joe Moscato: I don’t know who they are, but okay.

Jacob Kaufman: No, I’m just guessing. And you are saying they’re not there.

Joe Moscato: Not anybody that could be selling shares, that’s for sure.

Jacob Kaufman: Okay thanks for information. Good luck and let’s see what happens.

Joe Moscato: Thank you very much. I appreciate the call.

Operator: We’ll take a follow up question from Raymond Barbosa; your line is open.

Joe Moscato: Hey Raymond.

Raymond Barbosa: The mergers that happen on – or the purchase that you have to take effect on

August 1 you have those August 1 so that they wouldn’t have to go into the

registration document; is that why you did that?

Joe Moscato: No it’s just we’re doing our year end. Our yearend report is over by July 31 is

our year end. So it’s always better to make my auditors as well as my finance

team life a lot easier. So Ed asked me nicely if we could make sure if we do

any new transactions after our year end, which is the 31. So it’s really just not

over burdening my team.

Raymond Barbosa: Okay so you would have to do an update to your registration statement then?

Joe Moscato: I don’t have a registration statement out.

Raymond Barbosa: Excuse me, to your filing with the NASDAQ.

Joe Moscato: Oh they’re already in that.

Raymond Barbosa: Oh they have that information.

Joe Moscato: That information is in there. Yeah that information is in there. Even in our

year end it will be a subsequent event. That subsequent event will be duly

noted in the year end.

Raymond Barbosa: Okay, I was going to ask you a question about NUGENEREX, but I think it’s

been answered so that was my follow-up. Okay thank you very much.

Joe Moscato: Thank you very much for the call.

Raymond Barbosa: Okay, all right bye.

Operator: And I’m showing that we have no further questions at this time. I’ll turn the

call back for any additional or closing remarks.


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Joe Moscato: Okay well I’d just like to thank everybody today for tuning in. And hopefully

we’ll do another one of these soon. And hopefully that will be maybe after

the date once NASDAQ listed or we get NUGENEREX immuno-oncology

public. So I appreciate all of the well wishes as well as the kind words. And

for sure everybody’s attention to what we’re doing. This team is quite proud,

quite happy that we have such a loyal following and people who care enough

to make it their business to let us know how they feel. So thank you all, it’s

much appreciated and thank you again.

Unidentified male: Take care now, thank you.

Documents

Good day everyone. And welcome to today’s call with ... · Tony Fiorino: Hey Joe, I was a little shocked that the update was so short. Quick question for you is what concerns can