Intellipharmaceutics International Inc. (IPCI)

[WeeZuhl]

So what happens if they close below $1?



They already announced they met the 10-day share price above $1 requirement as of 9/28, but they also announced they were given an extension until 10/17 for the shareholder equity. What happens if today's closing price is below $1?


It already seems they'll have a tough time meeting the shareholder equity requirement. On today's filings, their shareholder deficit is nearly $5 million, which means they'll need $7.5 million in the bank, not including their routine operating costs, and nearly $2M of that deficit are loans from Odidi's. They could use those loans to buy into this offering, which would reduce the company's need to raise $2M and prevent the associated dilution. It is in his power to do it right now, this very minute, and the share price would go up by multiple dollars as soon as it was announced. No need to worry about $1 closing price. It also would reduce the need to find buyers, as it seems they are selling those "units" for substantially less than the $1.37 they suggest in the prospectus.


The only reason not to convert those loans into shares right now is if he believes bankruptcy is more likely than success.