This was originally going to be a thread on Twitter but I think doing this the old fashion way will be easier for allof us.
With Friday’s close at .0007, this is the lowest the market cap for $OCLG has been since it began to run on speculation of a merger in mid 2021. The ticker was touted by Frank Igwealor and his company Alpharidge as being one of his best shells during the great OTC shell cleanup of 2021. He was able to clean the o/s up from 3.248 billion to the 1.662 billion it now sits at and eventually a merger was announced with a company DNAgo.ai.
There was virtually no information available on the merging company and the press release came out in May of 2022, since then it’s been crickets. The only evidence that there was even any company whatsoever was a website which looked at best intriguing but lacked any polish and didn’t even seem like it was ready for actual customers as there was no way to order anything or even contact them. If I’m being generous and giving them the benefit of the doubt, I would describe everything as feeling very premature. But more honestly, on the surface things seemed very sketchy with almost no concrete information being shared other than the names involved.
With the very lackluster anticlimactic merger announcement, the market further sold off even though at that point in May of 22 it had already fallen quite a bit from it’s 2021 high at .02. The weeks and months have dragged on and the price has performed absolutely miserably, with there currently being seemingly almost no pulse whatsoever. And that’s where it sits now, with the lowest pps and market cap since early 2021. The market seems to have spoken, right? It was clearly a pump and dump, Frank scammed us all and took the money and ran, and now there’s no hope of any sort of uptick in real potential and optimism. Right?
I don’t actually know if Frank is a scammer, but I think there’s quite a bit of evidence that this merger is and has been taking place in the background, and that leaves open the potential for this very binary play to switch back to on/bullish. At $1.1 million market cap, the market is basically saying that there is no merger and there’s no story any longer. It’s not pricing in even the hint of a successful merger, and certainly not one that has any real potential for significant growth. The point is that the narrative is overwhelmingly gloomy, and all that needs to happen is for there to be any sort of hint that the narrative is wrong.
In fact the hints are already there, but what needs to happen is the market has to see enough to be convinced of this. The hate and negative sentiment for Frank runs deep, and that is not an easy thing to reverse or shake off. However, that is also blinding a lot of people to what is staring them in their face. They see the current narrative for $OCLG as being the end game/final judgment and I’m arguing it’s probably more like the second quarter.
Remember, I’m not arguing that I know there’s a fundamental winner here. I’m arguing that the current market cap has completely failed to price in ANY potential of a fundamental winner. It is currently pricing in a narrative that includes Frank pump and dumping it and there being no successful merger whatsoever (let alone an actually significant one which Frank originally touted for this shell). If there is evidence that Frank didn’t pump and dump it (there is) and evidence that the merger is actually still taking place (there is), then that implies that a market cap which is pricing in zero chances for a positive resolution here needs to dramatically begin to reprice in some potential.
I’m arguing that there’s enough known now to begin to reprice the market cap here significantly here, but the real awakening happens when the company finally releases their next press release on the matter. With all that being said, let me put together a list of evidence I’ve found over the past nearly year that spells out why despite the lack of press releases and communication as well as the severely declining price, there’s actually still a story here. And Frank didn’t pump and dump.
1. Let’s start off right away with Frank. He received 150 million restricted shares for his work here. According to the latest quarterly filing, those shares are still being held and they are still restricted. Simply put, the man never sold a single share on the run up to .02. He stands to make out very well if this story begins to pan out.
2. Which brings me to the next point. If Frank didn’t pump and dump and the company who bought the shell hasn’t even made an effort to pump the price so far with any PRs, there’s no obvious dump yet other than a sell off from retail traders, exacerbated by the combination of the bear market in the OTC, the awful sentiment for anything pertaining to Frank and the utter lack of updates from the company. In both cases, Frank and the new merging company, neither have taken any sort of reward yet and both stand to benefit from future share appreciation.
3. In January of 2023 a high end research company released an industry report on the hereditary genetic testing market and though the full report costs nearly $5,500, the highlights from the report give DNAgo.ai a noteworthy mention and reference the merger. From the report:
On 2 May 2022, Oncologix Tech, Inc., which is an OTC Market company, and DNAGO.Ai, a biopharmaceutical firm offering clinical genetic testing on all 20,000+ genes covering 7,000+ rare genetic illnesses at an accessible price for patients in need with DNAGO’s AI System, announced they have agreed into a legally binding business combination agreement. After this merger is completed, OCLG will become DNAGO, and its common stock and warrants are anticipated to continue being traded on the OTC Market under the ticker letters OCLG.
While the blip doesn’t state anything new, what it does do is add a level of credibility and legitimacy which was missing previously. Like I said, the market has more or less assumed the merger was a fake, so the fact that this very expensive research report thought to mention this seemingly insignificant and possibly fake merger means they did some level of due diligence and deemed it important. Read the highlight of the report thoroughly and you’ll see it’s not a penny pump piece, it’s a very legitimate research piece that just so happened to mention $OCLG’s merger.
4. This next bit isn’t so much evidence as it is a plausible explanation for what’s going on with the new company. I recently read a very informative book about reverse mergers and one section stood out to me as being especially interesting. From the book:
This may seem like strange advice, but I generally advise newly public clients post–reverse merger to ignore the stock ticker they have just worked so hard to obtain, at least for awhile, certainly for a number of months, maybe even up to a year. They need to focus on building the business, achieving their goals, and dealing with the obligations of being public. This includes engaging a strong IR firm, but again, not with an eye toward quickly boosting stock price but rather toward building long-term shareholder value.
What the author of the book is saying is that when a client purchases a shell to reverse merge their company into, he recommends they ignore their stock entirely while focusing on the underlying company and all of the hoops they need to jump through in order to be successful. Again, think back to points 1 and 2 that I made. Frank and DNAgo.Ai have not yet cashed in, in fact this author is saying that the game plan is to do exactly what they have done so far – ignore the temptation to focus on short term price appreciation and simply focus on the company. The author stated he suggested upwards of a year of radio silence and would you look at that, it’s been almost a year since the PR announcing the merger.
5. In late 2022 the order to discharge Frank as the custodian of $OCLG was granted, which is a sign that the merger was still a go in December.
6. Around the same time $OCLG created a new website, OCLGtech.com. Some of the most noteworthy things I see on their website is DNAgo.ai is listed under products (merger is still a go), their career page shows many positions available to fill, and a pipeline of drugs and biosimilars from the original OCLG company. I don’t know how successful any of this stuff will be, but again remember the market is not pricing in ANY merger or actual company here, just a shell coming off a fake merger and Frank pump and dump supposedly. So with that in mind, all of this is potential not being priced in.
7. If you go to the original DNAgo.Ai website which came out as they PRed the merger initially, you’ll see a cosmetics page with a link to a stem cell skin cream product called Arles. They’re a Korean company but I found some links in English and it looks like a real product. Not that it’s a game changer in itself, but I find it funny that here we have confirmation that DNAgo.Ai has a product for sale, albeit just a minor part of their business, and DNAgo.Ai itself is just part of the new $OCLG, and yet the market still prices it as if there is nothing to be found.
8. The nail in the coffin for the narrative that DNAgo.Ai was a fraud merger and that $OCLG is dead in the water was the supplemental information filing they put out on March 23, 2023. Though the company has been stubborn as it gets and hasn’t so much as made a peep since the merger was announced, this filing they had to put out in order to get their shell status changed before the deadline, lest they want to get delisted and have to fight to get back to a good standing. That means they didn’t necessarily release this information because they wanted to make any official announcement, but more so just to satisfy the criteria to make sure they’re not still deemed a shell. Either way, this filing spelled out quite a lot and essentially filled in all of the holes for the market as to what’s been going on behind the scenes since the May 2022 merger PR.
For starters they spelled out that on April 8, 2022, the company recommend operations more than 5 years after it had abandoned them in 2017.
The Company believes that it is no longer a shell company because on April 8, 2022 when the Company recommenced operation, more than five years after it had abandoned its operation in 2017. On April 8, 2022, the company became the holding company for DNAGO.Ai and DNAGO.Ai was subsequently merged into OCLG to transform the business of the company and launch the new OCLGTech.com, with focus on “finding new ways to treat and prevent diseases.”
And what specifically has the company been up to since April 8?
Since April 8, 2022, the Company has been engaging manufacturers and stakeholders in the industry both in the United States and South Korea to execute agreements with partners, customers, vendors, and manufacturers, reviewing licenses and sublicense agreements with potential licensors, interviewing and hiring employees, and conducting research and due diligence on potential partners, Joint-ventures, and acquisitions in the biotech industry. The Company is also actively seeking additional acquisitions of diagnostic and biotechnology opportunities as time and resources permits. Many of these additional acquisitions are still at the early stage of due diligence or non-binding letter-of-intent to acquire.
I’m not sure how else to put it. The market says, via the current share price, that this is a dud shell and the merger was a failure. The supplemental filing spells out plain as day that the company has merged and they are working towards growing. Frank never sold a share and always touted $OCLG as being one of if not the prized shell of his collection. The company never released any PRs to pump up the price and now has spelled out what they’ve been doing. The book on reverse mergers specifically said the good companies should initially ignore their stock and focus on the company itself, and that they should do this for up to a year after they bought the shell. Frank was discharge as custodian for a reason and the company created a new website for a reason, and the hereditary research report thought enough of DNAgo.Ai to include them and their merger.
A few other notes worth mentioning. The people behind DNAgo.Ai are from South Korea and that makes doing due diligence on them difficult for people like me who can only search in English. I’m quite sure the reason I can’t find out much about this company is because my abilities are limited by my language barrier. I did find a number of sites that seem to be connected to the guys behind DNAgo.Ai and if you want to go diving down this rabbit hole here is an interesting link that somehow fits into the puzzle.
Let me try to wrap up all of this with my main point. It’s not that I am 100% convinced that this is a sure thing or anything even close to that. All I’m saying is that at this point the market has priced virtually zero chance of success with the merger from May, so even just a remote chance of success should imply a sharp spike in the pps from here. And my argument is that there’s more than enough evidence mounting to warrant believing that there’s a second act coming to this story, and in the event that the market begins to see any sort of real chance for this merger to pan out, the spike in price will have to be violent. If you just wait for a press release you will be able to remove any doubt that the company is actually making a move towards investor awareness, but I think at that point it will be too late to get anywhere near these current prices. I think the evidence is more than strong enough to warrant taking a calculated gamble at these prices, hell I’ve averaged down as the evidence has increased while the price decreased.
Not only am I long shares of $OCLG but I’m telling anyone that wants to listen that these prices are calculated gambles I don’t think you should pass up. The evidence I presented is more than enough reason for me to believe these guys went radio silent on purpose and I see zero evidence of an actual pump and dump, if you know what to look for beyond simply the price itself. When the market is as wrong about something like this as I believe it is, I think this is where the life changing money is made. To all of the retail traders who moved on and refuse to see the evidence I’m pointing at, thank you very much because without your short shortsightedness I never would have been able to get shares as cheap as I have been able to.