Replies to post #76190 on Innovation Pharmaceuticals Inc (IPIX)

[nsomniyak]

It's a shelf, not an issue of shares. It is simply about having the ability to raise money if and when you need it.

I think having the shelf in place is good.

However, your point under good does not makes sense. A shelf is for issue of shares by the company. They would be sold by the company, NOT in the open market. The whole point is for the company to get the money.

Come to think of it your point under bad does not make much sense either. You can't raise $75MM from retail investors, certainly not in a hurry. There is no expectation that current holders would take down all the shares they would issue in an offering. I know I wouldn't.