Immune Pharmaceuticals Inc (fka IMNPQ)

[Letterpenny]

Phrased another way, for a rights offering to qualify for an exemption under Section 1145(a)(2) of the Bankruptcy Code, the amount to be raised in the rights offering (i.e., the new money invested) needs to be less than the value of the claims of creditors who are receiving the right to participate. While there is no definitive rule, no-action letters from the Securities and Exchange Commission (SEC) have suggested that the amount of cash raised cannot be more than 75 percent of the value of the relevant claim.