Innovation Pharmaceuticals Inc (IPIX)

[TimetoRetire]

make no mistake, Leo will need to raise capital very soon. As I mentioned earlier, a biotech company’s stock price is its cost of capital, so when companies do offerings at low prices, that means they are raising the most expensive money possible. Nine times out of ten, this puts a company into a vortex of dilution that is almost impossible to get out of. You still might like the science, but do not forget what your job is as the investor. Most biotechs fail because of cash burn rates in the industry. You have to be on top of your game to manage and fund a biotech company succesfully to avoid running off your investors due to excessive dilution. Leo is a horrible CEO and chances are very limited that he will be able to keep the ship sailing long enough to bring the drugs to market..