Innovation Pharmaceuticals Inc (IPIX)

[sox040713]

Let's assume you have 10000 shares of CTIX and Pfizer bought CTIX for $100 a share. So you will have 1 million in your account (wouldn't that be nice?). If you don't sell any shares after the buyout, the CTIX ticker will eventually become PFE. Let's assume Pfizer trades for $25 a share at the time of the ticker conversion, then you will have 40000 share of PFE in your account. This is how I think it works, although I might be wrong.

Question: those whose voices sound to me to be knowledgeable anticipate the likelihood of a buyout. If that occurs, how does that impact the shareholder? Does a buy-out usually trigger a stock split? How is that windfall garnered? If we’re bought-out by say, Pfizer, will we end up holding equivalent Pfizer shares instead of CTIX? I’d benefit from a look at the map of what could lie ahead and from any possible strategies you’re considering should the company decide to move one way or the other.