Innovation Pharmaceuticals Inc (IPIX)

[Suvorov]

Regardless of your complex apologia for IPIX $10MM Authorised Preferred shares this instrument remains a potential risk all the same.

The preferred shares can have convertible debenture exit strategy when they are issued without shareholder meeting approval.

This is the mechanism, the instrument which can massively dilute the company's common shareholders.

It happens all the time to company's of all sorts and sizes.

The authtorised $10MM Preferred of IPIX is a Damocles sword hanging over the stock price.

The apologia the IPIX management makes is the $10MM preferred are a defence against a hostile takeover.

Baloney.

If a takeover offer is good enough (high enough) the common shareholder can accept it by a vote , if the offer is not (too low) the common shareholders can decline by a vote. Pretty straight forward stuff.

The Preferreds are there so management has an out for their debt, and a means to control the company for their own pocket, not the shareholders.

The solution, let's employ Occam's razor-the simplest solution: shareholders demand that the management cancel the $10MM preferreds.

Eliminate that risk. No?

Pretty simple stuff.

Good luck on your trades.

All my musings are nothing other than my opinion.