Innovation Pharmaceuticals Inc (IPIX)

[loanranger]

Absolutely.
The idea is for the deal to make sense for both parties. The value of Aspire's up front shares is a fee for a transaction that is structured to unfold over a period of a couple of years. It's not at all likely that they would have done the same deal if the commitment shares were to be given to them at the end of the deal. They are intended to offset risk. They have calculators over there and they know how to use them. The fact that the commitment shares were "only 1.5%", per your numbers, of the value of the total POTENTIAL investment needs to be considered in light of the possibility that Aspire's dollars invested may, at any single point in time, be "only 5%" of the total shares called for by the transaction.

The cost of the issuance to CTIX is negligible.


If Aspire manages their risk by not letting the share price get away from them on the downside while they're holding a large inventory of shares and CTIX stays adequately funded without putting so many shares out that it depresses the share price, everybody's happy!



I couldn't help but look back at your SA article/blog on the original agreement:
http://seekingalpha.com/article/1070211-why-the-aspire-deal-is-a-winner-for-cellceutix-shareholders

This statement stood out:
"In this financing, Cellceutix has the advantage."
It was followed by your explanation of what you felt made that statement true.
Let me suggest that that isn't the right way to view a financing. If Aspire, who isn't new to this process, thought for a minute that your perspective was proper, the deal wouldn't have happened.
That's not to say that THEY had the advantage, but that they, as well as CTIX, felt they could benefit from the arrangement. As it should be.