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After a period of relative silence from Generex (OTCQB:GNBT), aside from a late day 8k announcement on Friday, a couple of press releases issued on Tuesday show that the lights are on in Worcester. It was first announced that the company had agreed to monetary terms with "certain institutional investors" that would put at least three million dollars in the Generex coffers, but the deal could bring in up to six million, if the "certain" investors were to purchase the full allotment of shares and warrants offered.

Generex will use the proceeds to fund ongoing trials and - of course - for general corporate purchases, which covers just about everything from electric bills and salaries to business meeting at Scores.

Also on Tuesday it was announced that Generex will increase the amount of patients enrolled in the ongoing Phase II trial testing AE37 for breast cancer. According to the release, the increase in enrollment will ensure that all patient groups are well represented in this trial before consideration shifts to the planned Phase III trial.

If this move validates the Phase II trial any more than it would have been anyway, then good on Antigen Express - the Generex subsidiary who is bringing AE37 through development - but it's a little premature to be looking toward Phase III. Let's make sure Phase II turns out as planned, which the boost in enrollment may be a move to do just that.

That said, the fact that the enrollment boost is coming mid trial will have some speculating as to why the move was needed now and not planned in originally. Generex offered another nugget in that AE37 release on Tuesday by announcing that an independent valuation firm, one that specializes in pharmaceuticals, had put a $300 million value on AE37 at its current stage in development. Not surprisingly, the company thought that this value was conservative, although investors may disagree as the current market cap for GNBT is still under 75 million.

It's tough to place too high a value on a Phase II company, in my opinion (never was a fan of GERN when it was trading with a market cap of closer to a billion than to half a billion), no matter how promising a product candidate may be, but I'll buy the fact that this stock should be trading significantly higher if anyone were taking Oral-lyn and/or AE37 seriously.

It's still my opinion that Generex is looking to sell or partner AE37, hence the "independent" valuation thrown out there, but investors are more intent on hearing news regarding Oral-lyn. THAT is the flagship product and the short term catalyst for which investors are awaiting an update.

All this talk about AE37 over the past few months - while nothing has been mentioned about Oral-lyn - will no doubt have investors believing that the company is leading them toward the bright, shiny object and away from where the attention should be.

This company can have quite the flair for the dramatic when need be, even when things get a little ridiculous, but it's all ho-hum right now until we get an Oral-lyn update.

For twenty six cents, however, couldn't resist picking up a few shares because if Oral-lyn does kick back solid results, then GNBT will be trading much, much higher in no time.

Disclosure: Long GNBT.

Source: Generex: Raising Cash, But No Oral-lyn Update