LOS ANGELES, CA -- (Marketwired) -- 05/07/13 -- When Tauriga Sciences, Inc. (OTCQB: TAUG) CEO, Seth Shaw, took the job in August of 2012 his mission was to advance an underperforming company that held licensing rights to a promising immunotherapeutic drug for cancer patients. Tauriga was called Immunovative, Inc. at the time, and in just a few short months Mr. Shaw had the company moving in the right direction, and saw the company's stock price reacting positively to his actions.
The end of 2012 was very impressive for Immunovative under Mr. Shaw's guidance. Mr. Shaw's accomplishments for his tenure in 2012 included the following: creating a collaboration agreement with Northwestern University, announcing the agreement at the University, receiving 2 U.S. patent allowances for scientific innovations, moving the company's Head Quarters to Danbury, CT, upgrading the manufacturing facility, receiving regulatory clearance and announcing the beginning of registration of Immunovative's Phase II/III clinical trial for metastatic breast cancer, participating in several investor conferences, being featured on the cover of Opportunist Magazine and to end the year receiving a key patent from Japan. Mr. Shaw felt with his hard work he had positioned the company for success.
The second week of 2013 brought an unexpected fallout, when the owner of the licensed drug, Immunovative Therapies, Ltd. (ITL), based in Israel, attempted to terminate the license agreement. ITL had asked for more development money, Mr. Shaw pointed out Immunovative, Inc. was ahead of the agreed upon payment schedule and asked for an accounting of the money spent, prior to sending more money. The next day ITL sent a letter to Mr. Shaw stating that Immunovative, Inc. was in breach of the licensing agreement, thus ITL had terminated the agreement. After a legal review of the contract Mr. Shaw knew Immunovative was in full compliance with the licensing agreement. This was the beginning of a bizarre series of events that included discovering Dr. Michael Har-Noy, CEO of ITL, was actually Michael L. Gruenberg. Gruenberg is a convicted felon, convicted of wire fraud, securities fraud, and interstate transport of checks obtained by fraud in connection with a scheme to inflate the reported instrument sales of a medical devices company named Endotronics, Inc. Gruenberg was sentenced to 10 years in jail and upon his release he changed his name to Michael Har-Noy in California State Court. These facts about Gruenberg's past were never disclosed to Immunovative, Inc. according to the company's press release dated January 23, 2013.
Mr. Shaw began legal proceedings against ITL and Har-Noy, but announced a settlement March 1, 2013 after Mr. Shaw realized continuing the litigation would have risked the company's future as a going concern.
During this turmoil Mr. Shaw turned some of his attention to deciding what would become of Immunovative, Inc. The easiest path would have been to close the company, but this was a step Mr. Shaw was not willing to take. When asked about this decision, Mr. Shaw responded, "I could not let the company fail because of the trust the investors placed in me. I owed it to the shareholders, and it is my job, to turn the company into a success and to restore shareholder value." Mr. Shaw has been working tirelessly to create a new, success oriented company.
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