Innovation Pharmaceuticals Inc (IPIX)

[muelch]

The stock price of CTIX is going to grow based on the outcome of the science not the market cap.

No offense but this is the kind of thinking from investors that is the reason why we need to move off of the OTC.

Penny stocks are a lot like penny slots. They have the worst payout. You can lookup a lot of OTC statistics, they're horrifying. People are mislead because they are cheap and can have large payouts, but the average return is still negative (a casino is one thing, but that's a pretty terrible property to have for an investment).

Maybe out here in penny land do investors care about mostly arbitrary metrics such as share price. The big boys care about P/E, P/S, market cap, cash burn rates, and other statistics that have nothing to do with how many shares a company has or what the share price is. To some degree they also care about share price to avoid having enough/too much liquidity, and that range is above what CTIX currently trades at.

Long term, the share price and outstanding shares in and of themselves do not matter, only market cap will matter. The growth of the market cap is the only thing that will increase your return. A large pharmaceutical company might one day pay $10B for Cellceutix based on revenue projections, and that's what our market cap will become, and that's what your return will be based on.

Your argument is like saying: "Assume Cellceutix's market cap will one day be $8B shortly before a buyout. If we do a r/s, it will instead be $4B shortly before a buyout. When the buyout comes, the premium paid will be the same regardless."

That shouldn't be what happens. It would be an arbitrary factor of two difference in our P/E ratio if we were to market our drugs ourselves. If the company is worth $10B in a buyout scenario, then that's what should be paid. One could make the argument that Cellceutix is in a better bargaining position the closer their market cap is to that buyout number, but that's quite a few assumptions to make. If our revenue is worth $10B to someone, then that's what they're willing to pay.

So no, growth of share price is not based on future value of the science, it's based on revenue and earning projections which will dictate things like P/E and our market cap.

Unlike the reasons for not doing a r/s (i.e. arbitrary perception), the reasons for doing a r/s are very tangible. We've had millions of shares dumped into the market from Aruda, or could have. Those shares would be much more readily absorbed if we were trading on the Nasdaq. Some believe there'd be less manipulation, which erodes sp. Investors wouldn't be deterred from investing long due to trading on the OTC (the OTC is a huge deterrence). All this leads to a higher market cap. Cellceutix needs to finance its operations, the longer we remain at an artificially lower sp than need be means more shares have to be sold to Aspire to raise the same amount of equity. This increases dilution, and results in a very tangible reduction to your return.