Innovation Pharmaceuticals Inc (IPIX)

[loanranger]

"1) he didn't bother actually reading the deal, or 2) he read it but financing structure is beyond his comprehension. Most often it is the latter."

Let's make a deal. I'll explain the Regular Purchase pricing terms in a way that everyone can understand them and you provide an equally clear explanation of the VWAP terms. I'll readily admit that, as far as the VWAP terms are concerned, I fall in the latter, incapable-of-comprehending, group.

Here's what the Purchase Agreement says about the pricing of Regular Purchases:
"“Purchase Price” means the lesser of (i) the lowest Sale Price of the Common Stock on the Purchase Date or (ii) the arithmetic average of the three (3) lowest Closing Sale Prices for the Common Stock during the twelve (12) consecutive Business Days ending on the Business Day immediately preceding such Purchase Date (to be appropriately adjusted for any reorganization, recapitalization, non-cash dividend, stock split, reverse stock split or other similar transaction)."

All one has to do is determine the closing price of the day (today that would be $1.89, right?). Then one would have to add the lowest 3 closing prices in the last 12 trading days and divide by 3 (today that result would be $1.78 http://ih.advfn.com/p.php?pid=historical&symbol=CTIX ). The lesser of the two, $1.78, would be the amount that CTIX would receive per share, assuming CTIX needed the money and found the 5.8% discount to market acceptable (What discount would you think they might find unacceptable if they REALLY needed the money badly? How will shareholders know how many shares have been purchased at what price without an ownership filing requirement? Is it possible that these are a few of the things that moved the blogger to use the term "questionable"?).

As long as CTIX orders 100,000 shares on any given day via a Regular Purchase (which is the maximum that they can order a day via Regular Puirchase), they are allowed by the agreement to require Aspire to purchase an additional number of shares via a VWAP Purchase.

Okay…1-2-3 GO!!!