Doing some simple maths re the following info;
1. Three of our largest existing shareholders invested a total of $1.2 million of funds needed to advance our Alzheimer's Tau C3 monoclonal antibody technology, pay for maintaining our patent estate that, among other things, is the foundation of our valuable contract with Shire Pharmaceuticals related to the development of OX1 for Friedreich Ataxia and support our ongoing operations;
2. Certain shareholders surrendered a total of $16.75 million of Convertible Preferred Stock and more than 50 million warrants in exchange for nominal consideration and a majority of the holders of Series B, Series C, Series D and Series E Convertible Preferred Stock and the holders of the Company's outstanding Convertible Notes and Warrants previously issued by the Company agreed to eliminate the ratchet anti-dilution provision going forward
All of the above can be converted for 2.4 billion shares at conversion price of .001, although company can repay notes in cash if holders agrees.
So effectively those holders who can't sell or convert any of these probably until early 2015, gave ILNS 18 million and took 6 million if converted at today's price and only 2.4 million if converted at conversion price.
Now I have no idea how this effected fully diluted shares, from previous 10q other that reducing them significantly, but clearly adds to fully diluted in the long run if all these are converted.
But it is no where near the amount that has been suggested.
There has been major restructuring over the past year, with lots of debt converted and those debt holders taking a major loss.
You have to ask why have they done this, who knows but the recent events indicate that they believe the share price will go much higher, and if it does they will win big time.
AI
