Innovation Pharmaceuticals Inc (IPIX)

[loanranger]

"I'll bet 95%+ of the short interest is short against the box"
Why would anyone do that?

I think this is true for retail investors:
"No one is shorting this stock without a hedge". Except investors with large portfolios and higher risk tolerance levels might.

The short interest bumped up around 2.5M shares between 6/30 and 8/14 as the share price moved from $.40 to around $.20. That's well over $500K worth of shares and not likely to be a retail trader/investor.

Two speculative alternative theories:
1. An investor did a more traditional hedge, shorting IPIX and buying the shares of a different Covid play.
2. The MFO has had almost 2 years of experience with the shares. They had no constraints on their trading imposed on them by their agreement*** and may have seen fit to give the short side a try.


***"(i) none of the Purchasers has been asked by the Company to agree, nor has any Purchaser agreed, to desist from purchasing or selling, long and/or short, securities of the Company, or “derivative” securities based on securities issued by the Company or to hold the Securities for any specified term,"
https://www.sec.gov/Archives/edgar/data/1355250/000147793218004763/ipix_ex101.htm
p.22