Innovation Pharmaceuticals Inc (IPIX)

[roiresearch]

Maybe I shouldn't have used the word chess because I am not a chess player. I was thinking more strategy which I understand is a big part of chess.

Based on the information in the prospectus, it reads the preferred stock can be converted at any time at the holder's option at the lowest possible conversion price of the 2 options given.

That being said, Option 1 lets the preferred stock holder convert at the lesser of .35 on or before August 15th or 85% of the lowest IPIX VWAP on a trading day during the ten trading days prior to and ending on, and including, the conversion date.

To me the strategy (aka my unexplained chess analogy) here would be to get the price well above .35 by the 2nd tranche. IMHO it would be a no brainer to convert all the preferred shares under .35 as the holder. That's the best scenario as the holder. However if the price went above .35, you have until Aug to see if the PPS comes back down or at least you have a .35 conversion price if the price skyrockets.

I understand there is a 90 day period where IPIX can pay a premium, but with what money are they using? Also, they can buy back the unused preferred stock. how much will that be? The prospectus reads the preferred stock can be converted at any time at the holder's option. Is there a restriction I missed about the holder not being able to convert during this 90 day period?