Intellipharmaceutics International Inc. (IPCI)

[fabius]

guys, my contribution to the mkt cap/reverse split/new offering debate:

- RS doesn't solve mkt cap, but it does solve minimum 1.00 $
- new offering COULD resolve mkt cap, but does nothing for min 1.00$

that is why, more often than not, you have the 2 combined...BUT....

here lies the problem: we have a force in total control of share price...it has been happening over the last 2 years, but after the AdComm it became clear even to a child.

now, suppose they RS 10:1...price goes to 6$

1- a contextual offering would be priced with at least a 30% discount VERY LIKELY ..let's say @ 4.2 with the disgraceful warrants attached.
2- suppose the want to raise 3mln shares (x 4.2 = 12.6mln cash)
3- they now would have around 38mln shares outstanding so mkt cap is fully solved
4- at this point the shorters, having now 3 different kind of warrants would drive the priced down heavely (we recently went from 1.05 to 0.65 in just 1 month)
5- the price would like reach 3.00$ in a couple of months...which FOR US LONGERS it is like 0.30 !!!!!

conclusion: RS+offering usually has a negative outcome, since the markets consider that the company is running out of options; if the company had partnership, news surprise, short-term positive updates they would release them...that is the reasoning.


bottom line:
- RS+new offering would allow IPCI to regain compaliancy
- would destroy shareholder value
- would devastate company reputation (already low)
- would ignite new and stronger share price manipulation

if IPCI goes that route...we shareholders are DEAD.