Innovation Pharmaceuticals Inc (IPIX)

[The Rainmaker]

How come nobody is discussing the possiblity that CTIX sold stock under their S3. 60 days ago CTIX's S3 was declared effective which means the SEC approved their filing and they were good to go selling free trading stock under the S3 they filed. Thats what the notice of effectiveness does. This allowed them to sell up to $75 million dollars worth of free trading stock and warrants. No bad news has been released to trigger a sell off. No Seeking Alpha hit pieces to drive down the stock price. Longs had months to take profits after the run up from $1.75 to $4.75 so its not them selling suddenly and as a herd.

The key is the volume on the selloff the past 5 days has been high. Maybe the company sold stock under that S3, at below market prices and whoever got those shares is dumping them into the open market. Bear raids typically come with one large mid-day giant red candle not a prolonged 5 day selloff with volume. Companies go public to raise money, CTIX could be doing what a public company does...raise money selling stock.

PS: If thats true why didnt the stock price go down in November when the S3 went live? Maybe it took CTIX 4-6 weeks after the S3 was declared effective to lock down the buyers. Another week or two to transfer the stock to them. Then the funders got their shares and started selling them into the open market.

Notice of Effectiveness (effect)
Edgar (US Regulatory) • Wed Nov 19,2014 6:01 AM
Securities Registration Statement (simplified Form) (s-3/a)