Replies to post #203504 on Innovation Pharmaceuticals Inc (IPIX)

[groton68]

Tender offers are a different story. IMO no one will make a hostile offer for IPIX with insiders owning so much stock

[loanranger]

"Actually SEC rules state that the target company (IPIX in this case) needs to disclose to SH any tender offer for acquiring the company - 100% or certain %age of o/s shares (not sure cut off) and terms and if they decide to accept or decline."

That just jumped to the top of the top ten list of things that I didn't know.

[MinnieM]

I believe you are comparing situations in a way that isn't apples to apples. More like fruits to meat.

A tender offer may or may not be agreed upon by the target company and I usually associate them with a hostile takeover attempt or the buyback of shares when a company wants to go from public to private. If XYZ company wants to take over the company they'll likely put out a press release targeting the shareholders and the price will usually be a bit higher than current prices. In the event it is hostile it won't work with this company since management holds enough shares and options to prevent such a thing. Either way, these are usually very public affairs.

Tender offers aren't what most are thinking about when discussions of partnerships, licensing or buyouts come up on this board.

Buyouts... let's say a pfizer enters a contract to purchase another company, they won't consider it a material event that requires reporting to their shareholders unless the purchase price is over 10% of its assets including any subsidiaries. Small deals are just an ordinary part of it's business.

For a pre revenue company like ipix, a sale of one of it's drug platforms would be a material event and require reporting once there is a completed deal since it would likely be more than 10% of its assets.

Negotiations don't constitute a material event and don't require reporting.

I'm not an SEC attorney and could be wrong. But, that is my understanding and I don't have the time to search the SEC site for the relevant links at this time. My recollections come from past reading of the SEC site regarding these items. Even if I'm remembering it correctly, rules could have changed since I did so.






In Reply to 'Amatuer17'
Actually SEC rules state that the target company (IPIX in this case) needs to disclose to SH any tender offer for acquiring the company - 100% or certain %age of o/s shares (not sure cut off) and terms and if they decide to accept or decline.

So if a company makes formal offer - not just informal talk - we will have to know and will know.
Leo will have to formally consider it and accept or reject it