Intellipharmaceutics International Inc. (IPCI)

[fred198484]

It is being withdrawn most likely because it is going to be replaced with another prospectus for another offering. So, I doubt it is good news. It is either neutral news as they needed to update the shelf prospectus for new info or they are about to launch an offering. Given that Mackie took their sell rating off the stock, my guess is they might be part of a new offering soon but they were justified in taking the sell rating off due to the price being below their target price of $1.

If I am right about an upcoming offering, that is when you would want to average down. It may well be also effectively an admission by the company that the Rexista application is DOA and they need to move on. That might be hard to hear and it certainly does not seem fair at all, but it may be the reality. I hope I am wrong but don't be surprised if the company announces something to that effect soon.

Alternatively, it could be an announcement that they are raising money to do the HAP tests required by the FDA and Rexista is still very much alive. That would be more sensible given that Rexista would be the best ADF opioid available, but my faith in the FDA is not high in this matter.