Innovation Pharmaceuticals Inc (IPIX)

[F1ash]

I think I agree with your thinking on the loan repayment.

Here's how I view the matter. The options are in place and will not go away even if the loan is paid back in full tomorrow. It would take approximately 10% of available cash reserves to pay it back. Yes the interest rate is 10% but if the goal is to sell the company in a few years isn't it better to pay the interest from the buyout proceeds than utilize cash reserves now? By the way I can't remember what LR calculated the total value of the loan was including options but, I think that number was decreased by about 4 million due to the recent price action.

How about this option: I think I saw Leo's salary is ~$400 k a year. I assume that is the amount he needs to run his household and business affairs. What if he drew down the loan $ 200k a year and took $200k in salary. I'm not an accountant but wouldn't he even come out ahead tax wise?

Thanks for the history lesson on the previous CEO. If they had come to me at that time for a loan my interest rate would have been slightly higher than 9% by about .... well alot lot.