Replies to post #248247 on Innovation Pharmaceuticals Inc (IPIX)

[frrol]

The MFO would not be "hedging", because the Preferred Shares don't have downside exposure. Keep in mind that they are convertible at market, as are any warrants they buy.

What they could be doing is selling, if they converted any to common. We don't know if they've converted anything yet. They may have, but family offices tend to be investors and there's no reason to. They have downside protection, as long as they think the company is viable.

The MFO's best play, if they think the company is viable, is to convert at as low a price as possible (and thus get as many shares as possible) and not sell them until we get that hopeful B deal or BTD. Of course this dilutes us, which is a bummer, but this was the best capital deal we could make. Capital ain't free.

[frrol]

However they could certainly be shorting shares to effect such an outcome that I described. Family offices don't have trading desks and normally don't short (they invest), but the incentive is there to do so. That's not a "hedge", that's just outright, well, shorting.

[TheDane]

According to your theory, they are shorting it first. They were notified on November 2 so maybe they’re partly the reason for the whacking this week.

In all it’s not a bad week. We know what’s coming.

The readiness is all!

[scottsmith]

When should that show up in the finra bi monthly short report?

“I think the majority of the selling pressure came from shorting by the MFO”