Phio Pharmaceuticals Corp (PHIO)

[Inoviorulez]

I see that Tang has converted a lot of preffered shares and continues to convert. Many thought he would stop converting so it got me thinking.

Why would a preferred shareholder convert all their preferred shares continuously even though nothing but good news is coming out? So I did a little digging and found this excerpt Rxi's 10-k SEC filing which is on page 26.

"The holders of our Series A and Series A-1 convertible preferred stock may be able to delay or prevent a change in corporate control that would be beneficial to our stockholders."

The above quote is in bold in the SEC filing on page 26 while nothing else is in bold letters other than this excerpt

"Provisions of our certificate of incorporation and bylaws and Delaware law might discourage, delay or prevent a change of control of the Company or changes in our management and, as a result, depress the trading price of our common stock."

So it has me thinking what company would want to buy or merge with Rxi Pharmaceuticals? One possible merger or acquirer in my opinion would be Opko health with Dr. Frost. Dr. Frost already owns 7% RXII. Maybe he wants to acquire or merge the company with his. It could possibly be another bid or hostile takeover. All this is a theory but it makes sense considering the preferred shareholder is selling out completely despite positive news.