Innovation Pharmaceuticals Inc (IPIX)

[Lemoncat]

For example purposes I am using $12M for phase 3 costs and Outstanding Share count of 250M shares for Option 1 and 450M Outstanding shares for options 2A and 2B.

The difficulty with 2A and 2B is that we won't just be able to sell 200 million shares at $0.06/share in a vacuum. ATM sales would drive the stock under a penny before we even got through 50 million shares. A financing deal would require option sweeteners, which using our recent financing deals (for much smaller money) would at least double the dilution foretasted here. We would likely have to authorize another 300 million shares on top of what we just did.

You're also neglecting the millions per year of cash burn we would have in addition to just the B-OM trial (K phase 2a oral, B-UC phase 1/2a). We would be in the 700 million to 900 million share count area to make it to B-OM approval and marketing.

That difficulty is likely why we have minimal leverage in negotiating option 1.

Your PEs are too high as well but even 10% of those numbers make for a compelling investment here. Getting there is the conundrum.

I would love for things to go Mo's way for once.

Go IPIX!