Food Innovation

[gfp927z]

Looks like tax selling could be likely for RIBT this year. The chart looks ominous, so will see if 1.00 holds. I see the $3 mil financing in Sept had warrants priced at 0.65, so that might be a potential downside target to watch since anything above that makes it profitable to exercise the warrant and sell the resulting shares. Also, looks like the warrants have an 'adjustment' feature, by which they can be re-priced lower after the 1st and 2nd anniversary. That isn't a factor yet, but can encourage manipulation later as the anniversary date approaches next year.

In my small cap biotech investing days, we used to dread these desperation type financings since once a company is running on fumes, the financing ghouls will take full advantage. Hopefully the company will have some positive developments next year to turn things around, but looks like RIBT is clearly in the 'Danger Will Robinson' category..



https://irdirect.net/prviewer/release_only/id/4856093


>>> Under the securities purchase agreement, the Investor has agreed to purchase (i) 2,307,500 shares of the Company's Common Stock at a purchase price of $0.65 per share, (ii) warrants to purchase 2,307,885 shares of Common Stock, exercisable for a period of five years following the date of issuance with an exercise price of $0.65 per share, $0.6499 per share of which will be prefunded, and (iii) warrants to purchase 2,307,693 shares of common stock exercisable for a period of five years following the date of issuance with an exercise price of $1.00 per share, which exercise price will be subject to adjustment on the first and second anniversaries of issuance if 110% of the 5-day volume weighted average price of the Company's Common Stock is less than the then-current exercise price. The closing is expected to occur on September 13, 2021, subject to customary conditions. Until the second anniversary of the closing of this offering, the Investor will have the right to participate for up to 45% of the securities offer by the Company in future offerings, subject to certain exceptions, and the Company has agreed to suspend its sale of securities under it's At The Market (ATM) equity issuance program.

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