Tauriga Sciences CEO Continues Strong Trend of Insider Purchases

Tauriga Sciences CEO Continues Strong Trend of Insider Purchases

By: Tomas Ronolski - AllPennyStocks.com News

Wednesday, September 4, 2013

There are websites devoted almost exclusively to following insiders buying and selling stock under the simple premise of gauging how much faith executives, directors, majority holders, etc. have in a company. Nothing says “I believe” more than putting your money where your mouth is. Of course, following insider activity in the microcaps doesn’t have the popularity in the masses, but that doesn’t mean investors shouldn’t pay attention. About one year ago, we mentioned 22nd Century Group (OTCBB:XXII) for their efforts with smoking cessation products as part of as part of a broader piece on Neutra Corp.’s (OTCBB:NTRR) quest to bring a nutraceutical to market to curb alcohol cravings. Point here is that we should have been following 22nd Century’s chief executive Henry Sicignano at that point and going forward as he was buying shares at a steady pace as the stock price slinked lower. Sicignano was still filing Form 4’s with the Securities and Exchange Commission when the stock bottomed in late November at 15 cents.


Less than one year later, the stock hit $1.74 in August and is still holding today at $1.14. Kudos to the faith he showed in his company.

Now, that’s not to say that it is always going to go that well (or even that way, for that matter), but it never hurts to follow along and see. A stock that has found its way down in the past year from over 30 cents to now around 2 cents is Tauriga Sciences Inc. (OTCQB:TAUG). Know who’s buying? Chief executive Seth Shaw. The company released news Wednesday of Shaw’s purchases, saying that Shaw has bought over 3.5 million shares in the open market since the start of August. Shaw’s purchase prices have ranged from 1.75 cents to 3 cents per share. Five Form 4’s have been filed with the SEC disclosing the insider purchases.

One only needs to look back through SEC filings to May and June to find that Shaw and Chief Operating Officer Stella Sung were buying shares then between 4.5 cents and 8 cents.

Shaw, who has a history of raising capital for companies as well as building companies and then merging them with other firms, said in today’s statement, “Should the company continue to experience significant pressure on its share price, I am prepared to continue or even accelerate my insider purchases due to my strong belief in this organization's future."

New York-based Tauriga Sciences is a developmental holding company operating in the healthcare space targeting acquisitions of medical technologies, licenses, drug compounds, equity stakes or even businesses to grow its portfolio of assets. Tauriga then looks to provide financing and other resources to shepherd the products towards commercialization.

In the latest quarter, ended June 30, Tauriga recorded no revenue and a net loss of $2.45 million.

Last week, the company reported the full satisfaction of all material terms of a 5-year exclusive license agreement with Green Hygienics, Inc. for the commercialization of 100% tree-free, bamboo-based products to the North American marketplace. Tauriga believes that the sale of the products, which will include hospital grade wipes, paper towels, napkins, diapers and more, will generate meaningful revenue starting this year.

Shares of TAUG have risen by 5 percent in Wednesday trading, nudging ahead to 2.1 cents on about 198,000 in volume.

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