Innovation Pharmaceuticals Inc (IPIX)

[Suvorov]

Yes, I understand. I didn't attribute your quoted statement to yourself.

The formula is that the Preferred conversion is a 15% discount to the 5 day average of the IPIX VWAP, meaning the average adjusted to the volume presented in the 5 days. Essentially, if one day 1 MM IPIX shares trade at 13 cents but one hundred thousand shares trade at 14 cents the average, of course, would be skewed to the 13 cent level. In this example it would be 13.2 cents less 15% which would be somewhere in the vicinity of 11.78 cents.

Of course as the death spiral stock price gets closer to zero the 15% discount tightens up. As we see in this stock's behaviour since this 'financing'.

The IPIX convertible preferred is a death spiral if I have ever seen one. They are ubiquitous to the OTC market. These toxic instruments are legal but I believe them to be immoral, unethical as their is NO risk to the Preferred shareholder.

And the common shareholders who put up risk capital are slaughtered.

That is not a fair business practice.

In my experience these unfortunate deals are the last ditch efforts of an insolvent company. Usually these toxic Preferreds are awarded to a crony or a family member of the company's management or promoter.