Cel-Sci's Lawyer Speaks: BioBuzz

BOSTON, Mass. (TheStreet) -- An attorney representing Cel-Sci Corp.(CVM Quote) contacted me last night via email, demanding a retraction to my story Wednesday concerning the mysterious Byron Biopharma and the South African licensing deal for Cel-Sci's cancer drug Multikine.

Jay Auslander, a partner with the New York law firm Siller Wilk, took issue with my claim that Cel-Sci sold "deeply discounted stock" to Byron as part of the South African licensing deal.

"Cel-Sci did not issue the stock at a deep discount; on the contrary Cel-Sci issued the stock at a premium," Auslander writes, demanding an immediate correction.

No correction is necessary because Cel-Sci's stock sale to Byron involved stock and warrants, which when taken together represent a deeply discounted sweetheart deal for Byron. The "three-fer" deal helped Byron book millions of dollars in profits -- realized or on paper, depending on if Byron sold the stock and warrants.

What I found more interesting about Auslander's letter, however, was what he didn't complain or ask about. Nowhere in his letter does he claim that Byron Biopharma is a real company and not just some paper entity, as my story lays out in great detail.

If Byron was a real operating company and its partnership with Cel-Sci was totally on the up and up, you'd think Auslander would be screaming from the rooftops about it. He would have offered me definitive proof that Byron was a real company, if for no other reason than to shoot down the central premise of my story.