Absent a naked short squeeze, I completely agree with your post-merger valuation assessment in single digits around 5 or 6 cents a share. That is also about what you get if you divide the current price by 6 or 7 to allow for the huge dilution of the stock of current shareholders.

I am surprised to hear even the application to the FDA for approval of the diagnostic product is at least a year away! That makes this a highly speculative penny stock for quite some time after the merger, if the merger even takes place.

Finally, if the CEO and his private investor buddies are so wealthy, why hasn't the financing of $1,500,000 required in the merger agreement already been obtained? That seems to be a small amount in light of the overall capitalization anticipated.