Intellipharmaceutics International Inc. (IPCI)

[mopar44o]

A non IPCI question guys.

Can someone explain to me how subscription receipts work?

Thinking of investing in a company that has some out right now which are trading at about a 3% discount to the actual shares.

I get that if the acquisition goes through they get converted to the standard shares. And that they pay the same divided as the standard shares in the mean time. And if the deal doesn't go through your money gets refunded.

But I'm curious about that last part. The receipts were issued at $31.00 each. They currently trade at $30.20. Lets say the deal falls through tomorrow. Do they return the original offer price of the receipts @ $31.00? Or do they return your money at a loss? If the deal goes through and the stock trades at $28.00, then what happens? I'm assuming its just a 1 for 1 (100 receipts = 100 shares no mater what the price up or down)

Thanks guys