On November 5, 2001 Hemispherx Biopharma, Inc. (AMEX: HEB) (Price: $4.99) announced it had extended the expiration date for its warrants to November 21, 2001, “due to difficulties being experienced by the global investment community.” The American Stock Exchange (“AMEX”) suspended trading on the warrants on their expiration date. As a result of the AMEX’s trading suspension, Hemispherx warrants ceased trading. On November 14, 2001, twelve days after the AMEX suspended trading, Hemispherx disclosed in a quarterly filing with the Securities and Exchange Commission (“SEC”) that it had received $5.7 million from the exercise of warrants.
Hemispherx had already extended the expiration date for these warrants once from November 2, 2000 to November 2, 2001. The AMEX allowed the warrants and the underlying shares to continue to trade despite the fact that Hemispherx has repeatedly issued throughout its 6 years as a public company false positive statements that have effected its stock price. Hemispherx insiders have also repeatedly sold shares to unwitting investors. The AMEX’s failure to regulate Hemispherx has led to a U.S. Congressional investigation of its listing requirements and an investigation by the U.S. General Accounting Office (“GAO”). The GAO’s report on the AMEX is due to be available to the public in late December.
Asensio & Company, Inc. is actively engaged in short selling and advises its clients on securities it believes are overvalued. A complete documented history of Asensio’s published work with short-selling transactions, and the firm’s definition of gross overvaluation, is available on the Internet at www.asensio.com. Short selling involves a risk not associated with the purchase of stock including, but not limited to, unlimited loss and stock borrowing risks. John Wiley & Sons, Inc. has published a book about Asensio & Company’s short selling titled “Sold Short: Uncovering Deception in the Markets.” The book can be ordered on the Internet at www.asensio.com and www.wallstreetbabylon.com, or www.amazon.com. Additional information is available upon request.