Innovation Pharmaceuticals Inc (IPIX)

[frrol]

Their point is that at such a "low" valuation (which is admittedly a subjective judgement), the majority of the value in a share of IPIX is in its potential for upside appreciation, with no intrinsic (ie, book or salvage) value. This is much like the payoff profile of a call option. And since it is an equity share and not a call option contract, it has no (or put another way: indefinite) expiration.

So buying an IPIX share is like owning a call option in terms of high payoff potential but without the decay of an expiry date. As long as the company can stay funded, you have no expiration and you retain a potential for payoff. It's an attractive prospect, worth risking some capital on. The only decay is in our share of the payoff as the company issues more shares to fund itself.