Innovation Pharmaceuticals Inc (IPIX)

[loanranger]

I don't think so...at least it shouldn't be read that way and it wasn't my intent. Those entities were issued cease and desist orders to prevent them from continuing to publicize that they intended to conduct certain projects while neglecting to also indicate that the conduct of the projects was contingent on financing. They issued a series of press releases that followed that pattern (note: in which no funding for any of the projects was ever secured) resulting in an SEC order that said in part:
"8. Section 10(b) of the Exchange Act and Rule 10b-5 thereunder prohibit, in connection with the purchase or sale of any security, making any untrue statement of a material fact or omitting to state a material fact necessary in order to make the statements made, in light of the circumstances under which they were made, not misleading.

9. Respondents knew, or were reckless in not knowing, that the press releases described above were false and misleading at the time they were made."


IPIX has had (and now has) several projects/trials that have been publicized and not conducted but as far as I know they have been accompanied by some "contingent on financing" language when that has been the case.

IPIX made a deal that included several milestones. They filed the details. I basically asked, now that the outcomes are known, whether management knew, or was reckless in not knowing, what those outcomes would be when they signed the deal OR at a time prior to the date that they made the announcement that they were unlikely to be met.
The example you gave deals with false and misleading public statements. I think those things are different. Management is allowed to exercise less than perfect judgment in their deals and/or decisions (of course there can be repercussions to that) but the SEC doesn't care much about such things. They do care about a pattern of false and misleading public statements but I don't think that applies to the questions I asked about the milestone agreement.