Replies to post #269105 on Innovation Pharmaceuticals Inc (IPIX)

[scottsmith]

Ipix share price is lower one week after the big deal than it was before the deal. Ipix longs should care about Leo’s failure to disclose crucial info to shareholders. As for the small number of legacy shorts, well, see above.

[loanranger]

Your edit was important to the question. NASDAQ has a set of rules for their members that is more strict than those an unlisted company has to follow...but NASDAQ can only kick a member out whereas an OTC company is already out.

NASDAQ and OTCQB companies both have to follow a set of similar disclosure rules but I think the distinction that matters is reporting versus non-reporting companies.

IPIX is on the OTCQB and their standards are less rigorous. P. 19 talks about material contracts:
https://www.otcmarkets.com/files/OTCQXOTCQBGuidelines.pdf

BUT IPIX is a Reporting Company and as such needs to follow the Exchange Act, which requires the filing of an 8-K (Instructions linked previously) for a material agreement, including exhibits if they are also material.

In spite of your clarifying edit I think there's a practical question in there somewhere.
"Is it possible that IPIX is able to work many advantageous avenues cloaked in a silver-lined cloud, avenues that NASDAQ companies simply cannot work?"

Yes. NASDAQ doesn't impose anything more than is required by the SEC on this issue. But the chances are much greater that they would enforce a violation of the disclosure rules than OTCMarkets would (that's the history)....even though for a Reporting Company they are the same rules.

So I think that the answers to your questions are Yes (without the edit it would have been "probably not", maybe even "evidently not") and Yes. The sad fact is that this is something that the SEC itself can't monitor without help so only the most egregious OTC violators are even questioned and frankly, neither NASDAQ nor any of the other exchanges likes to toss members...it's expensive.

This specific issue is obviously a complicated one. Even if we knew EXACTLY what the initial payment was or will be there would almost certainly be disagreement about its materiality. The companies financial condition, which sucked going into the deal, SHOULD have a large bearing on that measurement. Ask the guy on the stoop whose happy to have you toss your loose change in his tin cup to quantify what he thinks "material" means. It's probably a lot different than our number would be.