Ealixir Inc (EAXR)

[SkinFlint]

Ladies and Gentleman. What Nilbud is trying to describe here is what is known as "Private Investment in Public Equity" or PIPE financing.

Below is a primer on PIPE financing and it's lethal results taken from this website. http://jsmineset.com/2009/06/05/how-to-go-down-the-pipe-into-the-rat-hole/

Note in the first paragraph where it states "the financing entity entity has the right to walk away"...Did AGS walk away on Flint???? WHY???? Hmmmmmm.

How To Go Down The "PIPE" Into The Rat Hole
by Jim Sinclair

Pipes work this way. The Hedge fund agrees with the company to provide lets say $25,000,000 over one or two years. Please note that the financing entity has the right to walk away at any time. The financing entity insists on getting shares that are immediately saleable.

Upon agreement the financing entity initiates a short position because the price of the shares delivered will be the price of the shares as it is trading on the day of the company’s request for money, less 15%. They generally are short more than the monthly delivery tranche. This device specializes in raping small caps.

A PIPE arrangement via its mechanism and the financier’s short position guarantees the short (financing entity) a profit of 15% or more if you can batter the price down, which of course the financing entity does.

To accept a PIPE financing is to offer up your shareholders as sacrificial lambs which many companies find irresistible in hard times. It puts the company into the hands of Jabba the Hut, PIPE financiers who will pull the money plug at some critical moment leaving the dumb company to fold.

In knowledge that they have tanked the company, the Jabba the Hut PIPE financiers of course pummels the share values into oblivion without risk.

This is how a company goes down a PIPE into a Rat Hole.

A PIPE financing is the ultimate set up that hunts, as a top predictor, for the weak and stupid small cap anything. Investors and companies BEWARE!

You should warn your investment management not to participate in this type of financing, or at least understand what has happened so you can get out of Dodge before the PIPE financing entity kills the company.