Replies to post #37032 on Intellipharmaceutics International Inc. (IPCI)

[tilator]

Please stop with the warrant thing. Your assertions are not accurate.

How come? Isn't it just converting warrant to shares and then selling the shares to previous warrant holders?

[wimuskyfisherman]

Amigo- I agree with you regarding the shareholder equity. That is why I have been saying they will need to sell a lot of shares to get to that point. Hence the reason for the $15M offering.

Remember all the talk about revenue prior to Seroquel release? I was very optimistic that they would actually make some money there. When Odidi did not deliver on Seroquel, that is when I realized he would likely never deliver on anything.

[Samsa]

Amigo, I agree with your assertion that SHE is total assets minus total liabilities.

However, what I am not so sure of is the reclassification of the warrants to shares. If that is now calculated like a promissory note because the holders now guarantee to purchase at those strike prices, why wouldn't the shares now be considered as an intangible asset OR as part of cash and cash equivalent?

If I have an outstanding "promise to pay" I would think it would be shown on the asset side somewhere. I may be wrong here, Its just always been a theory. But I feel it was done for some reason. I admit I am not an accountant however. LOL

[WeeZuhl]

The simple calc on Shareowner Equity is the sum of all assets minus the sum of all liabilities.

Great to hear from you, AmigoMike. Any conversation is better when you are in it. In order to have $2.5M SE, it seems the company will need to account for the Odidi loans, yes? Either pay them off or have an equal amount of additional cash on deposit. Last month's $0.5M loan made it that much harder to meet their goal. If Dr. Odidi believes in the future of the company, he should convert both of those loans to shares immediately. That is a simple step completely within his control. It would help the company to meet SE and surely would be the kind of news to provide at least some "pop in price." It would also give him greater control by significantly increasing his percentage ownership.


Besides the loss of interest income, the only reason for him not to convert those loans now is if he believes IPCI bankruptcy is in the near future.