Dow Jones 12785.23 +12.19 8:34 am PDT, April 18, 2007 NASDAQ 2511.93 -5.02 For info, visit access.smallcapnetwork.com S & P 500 1472.30 +0.82 Change your subscription status here Russell 2000 826.87 -2.09 VOLUME 07: ISSUE 41 Locked & Loaded - CVM Finds Funding  When someone hands over $15 million to a biotech company to continue work on a cancer treatment, I have to take notice. Some of the underlying meanings I interpret in a transaction of this size include the notions that (1) the drug has enough merit so far to keep developing it, and (2) the company has at least good enough odds of getting the drug to market that someone, or perhaps several people, were willing to make a $15 million bet....which really isn't pocket change by anybody's standard.  Ultimately though, I sense a potential money-making opportunity for investors.  Why would a $15 million investment be made in the first place? I believe the obvious answer is the correct one - to turn it onto a considerably bigger sum. Well, considering a big chunk of what was probably some big/smart/'in the know' money thinks this stock is likely to do just that, I had to know more....and I think you do too.  On the other hand, knowing the biotech company from the scenario above was CEL-SCI Corporation (AMEX: CVM), I wasn't a bit surprised they could raise this kind of capital.  But wait - it gets even better. After scouring through the details of the financing, and then double-checking the chart, I realized you still have an opportunity to get in at the same price all this smart money did (which I think may also make you the smart money, by default).    The Centerpiece When we talk about a big-money investment in CEL-SCI, by and large, we're talking about an investment in Multikine....CEL-SCI's cancer treatment currently in a latter development stage. Though the drug may have uses in the treatment of various solid tumors, the focus of the current work is on the treatment of head and neck cancer. We've detailed it before, so we won't dive too deep into the efficacy observed so far. However, I do want to mention a handful of highlights from the recently-completed Phasing II testing.....      Multikine demonstrated a 33% increase in the median overall survival at 3 1/2 years post-surgery in head & neck cancer patients when administered as a local injection, outpatient, prior to standard first-line therapy.  It has been demonstrated to be safe and non-toxic. No serious adverse events (SAEs) related to Multikine have been reported in 200+ Multikine treated patients.  Multikine renders cancer cells much more susceptible to follow-on radiation therapy.  The anti-tumor immune-mediated processes continued long after the cessation of Multikine administration.  A three-week Multikine treatment of patients with advanced primary oral squamous cell carcinoma resulted in an overall response rate of 42% prior to standard therapy, with 12% of the patients having a complete response.  From a medical perspective, not bad, huh? But what about from an investment perspective? Well, I think that picture is just as compelling.  For those who were around in January, you may recall Multikine has now progressed into Phase III testing. This is the last stage required by the FDA before granting any approval for a new drug. If Multikine continues to mirror the success achieved in Phase II trials - as CEL-SCI thinks it will - we may well see Multikine on the market in the future. When and if it happens, I think there's no telling how high CVM shares could rally.    The Financing OK, so here's the deal (full details are in the press release below).....CEL-SCI just raised $15 million by issuing 20 million shares at 75 cents per share. If the price rings a bell, it's because that's basically where CVM is trading now.  Wait a second! You mean some 'big money' just bought a piece of a company at the market price? Yep - the same deal you and I could have by becoming an owner today. What does that tell you about CEL-SCI and Multikine? To me it speaks volumes, as if the $15 million alone wasn't enough of an endorsement already (even at a below market price).  That's not all though. As part of the financing package, every two of these shares sold included a 75 cent warrant, and a $2.00 warrant. The 75 cent warrant was neither here nor there in my book....it's the same price as the financing deal. But the $2.00 warrant? These same investors now have the right to invest at $2.00 per share at a later date, after they've already staked a huge claim in the company. Again I ask, what does that tell you about CEL-SCI and Multikine? It tells me these same investors see something well beyond the current level of 75 cents. Hmmmmm.    Why CEL-SCI? If you think cancer treatments are all the same anymore, think again. Though we haven't talked about it quite as explicitly as this before, we feel 'immunology' is word you may want to get familiar with. It's just a way of inducing the body to fight a tumor by amplifying its own immune system. By the way, all the collective work so far suggests immunology may be radically effective in the war on cancer - you just need companies like CEL-SCI to keep developing them.  As always though, our primary concern here is whether or not immunology can make for a viable investment. In a nutshell, we think it can....and we don't seem to be alone.  Recognize the name Dandreon (NASDAQ: DNDN) ? It's just a little stock that's up more than 200% since late March - on the heels of the FDA's preliminary positive (though non-binding) vote on their prostate cancer treatment. (The final vote is expected in May.)  You know what kind therapy Dandreon is working on? It's a cancer vaccine.....immunology, in technical terms. And, there are lots of other immunological treatments in development. Point being, this type of drug doesn't appear to be a fad - the FDA is reviewing more and more of them all the time, as more and more of them prove their mettle.  So, are we saying CEL-SCI the next Dandreon? Maybe, but the only point we're trying to make with DNDN is to illustrate the potential. Our excitement over CEL-SCI is and has always been just how powerful Multikine appears to be. And, considering the company made every effort to ensure the Phase III trial results demonstrate the same degree of effectiveness as Phase II's results, we have to feel very optimistic about CVM shares....we just think the potential reward could be too great to pass up.  By the way, we're going to stick with our original suggested target of $1.48 for the time being, which is roughly a double from current trading levels. But frankly, if Multikine makes it all the way through Phase III, I think this stock could be worth many times that for longer-term owners.    CEL-SCI Announces $15 Million Financing  VIENNA, Va., APRIL 18 / -- CEL-SCI Corporation (AMEX: CVM), a developer of immune-system based treatments for cancer and infectious diseases, announces that it has raised $15 million in new equity financing. The shares were sold at $0.75, a small premium over the closing price of the last two weeks.  The financing is accompanied by 10 million warrants at $0.75 and 10 million warrants at $2.00. The Company has agreed to register the shares involved in this financing.  Geert Kersten, Chief Executive Officer of CEL-SCI said, "These funds will allow us to move forward as planned to start our Phase III clinical trial in first line advanced primary head and neck cancer. This also allows us to negotiate with potential partners from a position of strength."  This press release does not constitute an offer to sell, or the solicitation of an offer to buy, any securities.  CEL-SCI Corporation is developing new immune system based treatments for cancer and infectious diseases. The Company has operations in Vienna, Virginia and Baltimore, Maryland. The Company's lead product Multikine(r) is cleared to enter a global Phase III clinical trial in advanced primary head and neck cancer patients in the U.S. and Canada. CEL-SCI's other products, which are currently in pre-clinical stage, have shown protection against a number of diseases in animal tests and are being tested against diseases associated with bio-defense and avian flu.  When used in this report, the words "intends," "believes," "anticipated" and "expects" and similar expressions are intended to identify forward-looking statements. Such statements are subject to risks and uncertainties, which could cause actual results to differ materially from those projected. Factors that could cause or contribute to such differences include, an inability to duplicate the clinical results demonstrated in clinical studies, timely development of any potential products that can be shown to be safe and effective, receiving necessary regulatory approvals, difficulties in manufacturing any of the Company's potential products, inability to raise the necessary capital and the risk factors set forth from time to time in CEL-SCI Corporation's SEC filings, including but not limited to its report on Form 10- K for the year ended September 30, 2006. The Company undertakes no obligation to publicly release the result of any revision to these forward-looking statements, which may be made to reflect the events or circumstances after the date hereof or to reflect the occurrence of unanticipated events.  Source: CEL-SCI Corporation   We Value Your Feedback   Got comments, questions or suggestions? Send 'em on over: Email the Editor If you wish to send a written request or inquiry, please send it to our physical address: TGR Group, LLC 4653 Carmel Mtn Rd Suite 308 #402 San Diego, CA 92130 Cleaning Out The Closet - Say Bye to WBTO & SIEN With a handful of newer companies to cover now, it's time to clean out the closet (so to speak) and officially drop coverage on some of our older names - just so we can stay focused. There are only two we feel we need to pare right now....Web2 Corporation (OTCBB: WBTO), and Siena Technologies (OTCBB: SIEN). Note that we're putting WBTO in our past while it's still within our trading entry/exit parameters. Our target was/is $3.79, while we suggested a stop of 89 cents. We'll leave it up to you to decide which of these is likely to be found first, though we'll also mention you can adjust either as you see fit.  Siena easily has one of the coolest race and sports book technologies any casino could ask for. Plus, the company can basically create any sort of audio/video technology you could imagine. More than that, we think eventually this company could be great. However, it just doesn't seem like now is the right time.  For more, click here.   MIV Generates First Heart Stent Revenue Well, that didn't take too long. It was less than two weeks ago we re-introduced MIV Therapeutics (OTCBB: MIVT) to you, as it looked like their proprietary heart stent coating was starting to see a light at the end of the tunnel. As it turns at, MIV was actually already at the end of the tunnel. They've already delivered and gotten paid for these next-generation heart stents. (Kudos to them for even being able to keep it a secret as long as they did.) No word on where they were sold, or how many, but that's not the point.....I think the important piece of the announcement is that they're selling them at all. It all starts with the first one. For more, click here.   Reader's Pick Is Already Up  Though it's been less than three months, our first reader-submitted stock pick is already up nicely, and looks like it could be gearing up for a lot more.  We mentioned N-Viro International Corp. (OTCBB: NVIC) back on January 31st, when shares were at $3.00. A few rounds of good news between then and now finally got traction today, pushing the stock up to a close of $3.50. And, between the chart and our interpretation of the news, we think the strongest stock returns may still be in front of us.  For the rest, click here. Subscribe Information is power and timely information is profitable. Become informed and profit from Small Cap Network Profiles and Trading Alerts by becoming a Preferred Member today. There is no cost associated with your email subscription. 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To the degrees enumerated herein, SCN should not be regarded as an independent publication.  Click Here or go to http://access.smallcapnetwork.com/compensation_disclosure.html to view our compensation on every company we have ever covered, or visit the following web address: http://access.smallcapnetwork.com/profile_disclosure.html for our full profiles and http://access.smallcapnetwork.com/short_term_alerts.html for Trading Alerts.  TGR Group, LLC has been paid a fee of $25,000 cash and 75,000 shares of newly issued restricted stock by Web2 Corp. for coverage of the Company. TGR Group LLC has been paid a fee of $30,000 and 200,000 newly issued restricted shares of Siena Technologies for coverage of the company. In addition, one of the principles of TGR Group LLC is also a principle of MarketByte LLC. In a separate contractual relationship in 2003, MarketByte LLC was paid a fee of $25,000 in cash and 500,00 newly issued, restricted shares by Siena Technologies for coverage of the company. The term of MarketByte's obligation to Siena Technologies has expired. The aforementioned 500,000 shares issued to MarketByte LLC have become free trading under SEC rule 144. This should be viewed as a potential conflict of interest. TGR Group LLC has been paid a fee of $25,000 and 150,000 shares of newly issued restricted stock by Cel-Sci for coverage of the Company. The aforementioned 150,000 restricted shares have become free trading under SEC rule 144. Additionally, back in November of 2002, TGR Group LLC was paid a fee of $25,000 and 250,000 shares of newly issued restricted stock of Cel-Sci for coverage of the company until November of 2003. 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