Food Innovation

[gfp927z]

Condolences on RIBT, but I wonder if it might be approaching a near term bottom (?)

Since the warrants from the Sept financing are exercisable at 0.65, it is profitable for holders to exercise and sell the resulting shares at anything above that level. So 0.65 might represent a 'floor', at least when it comes to selling pressure from the warrant side. Regular tax loss selling is another source of the current price drop, and that should end in several weeks.

However, looking at the prospects for a January bounce, while the tax selling should be gone at year's end, the 0.65 warrant aspect will still be there as long as the 2.3 mil of warrants are around. There is also a 2nd tranche of 2.3 mil warrants priced at $1 (which can be re-priced lower at a later date), so these could represent an upside barrier at $1 for the share price.

All in all it's a messy picture once these crappy financings enter the picture. You see this a lot with small bio stocks that do desperation financings, as the chronic lack of earnings leads to a 'circling the drain' vortex -


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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