Innovative Payment Solutions Inc (IPSI)

[Renegades17]

Capital raises



There's obviously been a fairly rapid succession of capital raises. They have been on favorable terms (ie. close to prevailing market prices), but I think the market wants to see what they're going to do with the money. On the positive side, the balance sheet is fortified and hopefully now they will take a pause and execute.

Corbett's warrants strike at $0.24 and they're exercisable on a cashless basis. He is strongly incentivized to get the stock price demonstrably higher to limit the number of warrants he forfeits to cover the cost of exercise. His interests are strongly aligned with shareholders.

I suspect they have some acquisition targets lined up and needed more money to execute on them (ie. pay deal fees and other upfront cash costs to close them). Having HC Wainwright as the underwriter on the latest deal is interesting to me. I have to imagine they're in this not just for the fees associated with this capital raise. They probably want in on any M&A fees and follow-up activity.