Replies to post #38175 on Intellipharmaceutics International Inc. (IPCI)

[wimuskyfisherman]

Cysonic- Only a few of pre-funded warrants have been exercised but all have been paid for at 74 cents. Most of the offering money came from these pre-funded warrants:

https://www.intellipharmaceutics.com/news-media/press-releases/detail/181/intellipharmaceutics-announces-closing-of-us-14-3-million

[TORONTO, ON / ACCESSWIRE / October 16, 2018 / Intellipharmaceutics International Inc. (NASDAQ: IPCI; TSX: IPCI) ("Intellipharmaceutics" or the "Company"), a pharmaceutical company specializing in the research, development and manufacture of novel and generic controlled-release and targeted-release oral solid dosage drugs, today announced the closing of its previously announced underwritten public offering in the United States, resulting in the sale of 2,775,231 common shares, pre-funded warrants exercisable for 16,563,335 common shares, at an exercise price of US$0.01 per share (the "Pre-Funded Warrants"), and warrants exercisable for 20,000,000 common shares, at an exercise price of US$0.75 per share (the "Firm Warrants"). These securities were issued in units, each consisting of either one common share and one Firm Warrant or one Pre-Funded Warrant and one Firm Warrant, and were offered at a public offering price of US$0.75 per unit.

H.C. Wainwright & Co. acted as the sole book-running manager for the offering.

Each Firm Warrant is exercisable immediately and has a term of five years and each Pre-Funded Warrant is exercisable immediately and until all Pre-Funded Warrants are exercised. The common shares (or common share equivalent) and the accompanying warrants included in the units were purchased together in the offering but were issued separately.

The Company received gross proceeds of approximately US$14.3 million, prior to deducting discounts and commissions and other offering expenses. The Company intends to use the net proceeds of the offering for general corporate purposes, which may include working capital, capital expenditures, research and development, accounts payable, and other commercial expenditures.

A registration statement on Form F-1 relating to the public offering of the securities described above was filed with the Securities and Exchange Commission ("SEC") and was declared effective on October 11, 2018, and an additional registration statement on Form F-1 filed pursuant to Rule 462(b), became automatically effective on October 12, 2018, both of which are available on the SEC's website located at http://www.sec.gov. The offering of these securities was made only by means of a prospectus forming part of the effective registration statement. A final prospectus relating to the offering was filed with the SEC on October 15, 2018, and is available on the SEC's website at www.sec.gov. Copies of the final prospectus may also be obtained from H.C. Wainwright & Co., LLC, 430 Park Avenue, 3rd Floor, New York, NY 10022, by calling [phone] or by emailing [e-mail].

This press release shall not constitute an offer to sell or a solicitation of an offer to buy these securities, nor shall there be any sale of these securities in any state or other jurisdiction in which such offer, solicitation or sale would be unlawful prior to the registration or qualification under the securities laws of any such state or other jurisdiction.
/i]

[wimuskyfisherman]

Cysonic- I could be wrong on how many shares the Odidi's own. But I think a number of us already determined that it was 578K between them. And they had many options/debt conversion that were priced way out of reach. Maybe someone who knows for sure can clarify how many shares the Odidi's actually own.

[Amigo Mike]

Cysonic,

Today the Odidi's own 578,000 shares. It is right there in the filing. The rest are shares issuable on exercise of options/warrant/debt conversion. Those shares don't exist today but for purposes of the calcs on filings, the shares are deemed beneficially owned even though they may never be issued (i.e. what's possible to be owned), hence the 12+% number derived by dividing all the potential shares into today's outstanding share count. Doesn't make much sense but that is how it is done.

Amigo Mike