Stimmt mich nicht besonders zuversichtlich für die Zukunft!
Since our September 26, 2006, report, several events have affected Biophan Technologies, Inc.'s (Biophan) balance sheet and its progress toward commercialization of its technologies by licensees. Biophan commented in its SEC Form 10Q for November 30, 2006, that it believes the Company has adequate working capital resources for the upcoming four to six months of operations. However, the Company's need for capital prompted us to reduce our rating of Biophan on February 21, 2007, to a Speculative Buy with a new price target of $2.00 per share. We then lowered our rating to Neutral on February 28, 2007, in response to Biophan's filing an SEC Form 8-K on February 27, 2007, detailing the Forbearance Agreement dated February 16, 2007, with the holders (the Note Holders) of its Senior Subordinated Convertible Notes, due October 12, 2009. We believe the closing of a Forbearance Agreement is positive for Biophan in this situation and indicates that the Note Holders are willing to discuss new terms for the Notes. We further believe that Biophan's MRI technologies (both for safety and image compatibility) and the MYOTECH MYO-VAD technology are unique to the industries addressed and, given time, will provide Biophan revenue and earnings. However, during this period of limbo for Biophan's finances, we reiterate our Neutral rating and will review the rating upon resolution of this financing.
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