Innovation Pharmaceuticals Inc (IPIX)

[loanranger]

Following up on ".7".
(Motivated by the "BK next week" posted earlier.)

A few things we know in addition to that $.7M:
The MFO appears to be the Company's sole source of funds and in the Subsequent Events to the 10-Q we saw "From January 1, 2019 to February 5, 2019, the Company issued 275 shares of its Series B 5% convertible preferred stock, for aggregate gross proceeds of approximately $270,000, upon exercise of 275 warrants issued by the Company in January 2019."
So we can see that there was closer to $1M to work with but more importantly we can see that the MFO, with a methodology that allows them to profit in spite of the flagging share price, may be willing to continue to provide funds:
They can convert their Preferred at FACE VALUE (not cost) into common at "85% of the lowest VWAP of the Common Stock on a Trading Day during the ten (10) Trading Days prior to and ending on, and including, the Conversion Date" and sell it at will (and I expect they do that in short order to minimize their risk). They bought warrants for $982.50 that they could exercise for $1080 in Preferred value in the first place so that profit is realized in addition to whatever profit they could book when selling the discounted common.
As long as the share price is REASONABLY stable the math provides them a profit, so they would seem likely to continue to provide funds through the exercise of warrants for preferred shares.

Not an ideal situation in that the funding is out of the Company's hands, but it seems likely that the MFO will continue to play unless they find a better game....unless a dropping share price puts a crimp in their math.

"BK next week" wouldn't seem likely. Unfortunately we won't know where the Company stands as of 3/31 in terms of the MFO deal until May. The deal in terms of warrants available to exercise has a limit.