Replies to post #336419 on Innovation Pharmaceuticals Inc (IPIX)

[olden_grumpini]

The agreement anticipates the possibility that the authorized unissued shares will be less than the required minimum:

(b) If, on any date, the number of authorized but unissued (and otherwise unreserved) shares of Common Stock is less than the Required Minimum on such date, the Company shall use commercially reasonable best efforts to hold a special meeting of shareholders (which may also be at the annual meeting of shareholders) or take action by written consent of shareholders at the earliest practicable date to obtain shareholder approval to amend the Company’s articles of incorporation to increase the number of authorized but unissued shares of Common Stock to at least the Required Minimum. The Company shall use its commercially best efforts to obtain such shareholder approval to increase the number of authorized but unissued shares of Common Stock to at least the Required Minimum at the earliest possible date, but in no event later than 75 days following the date of on which number of authorized but unissued (and otherwise unreserved) shares of Common Stock is less than the Required Minimum. . . .

The Aspire deal is clearly on hold. Even if there was a legal loophole I don't think IPIX would attempt to use it since the penalties are so large:

(d) If the Company enters into or effects a Variable Rate Transaction in violation of the prohibition set forth in Section 4.14(b) herein, the Company shall pay to each Purchaser, in cash, as liquidated damages and not as a penalty, an amount equal to 25% of the sum of (a) the aggregate Stated Value of the shares of Preferred Stock then held by such Purchaser plus (b) the aggregate Stated Value of the shares of Preferred Stock issuable upon exercise of the Warrants then held by such Purchaser. For purposes of clarity, the Company shall pay the liquidated damages described herein for each Variable Rate Transaction that violates the prohibition set forth in Section 4.14(b) herein. The Company shall pay to each Purchaser such amount of liquidated damages in cash by wire transfer within three (3) Trading Days of the date of such Variable Rate Transaction. . . .

In an interesting twist, IPIX paid the purchaser $35,000 for their legal fees and expenses on closing of the deal.

There is a dividend due on January 1. This dividend can be paid in cash or preferred shares.

[steelyeye]

Since we're all speculating, it is fascinating to read some always hammering out the worst case scenarios at every turn.

What's been (conveniently) left-out so far is that IPIX retains the right to repurchase all these preferred shares at a slight premium, and the funders may have already received material non-public information that encouraged them to make the funding deal happen in the first place, and pronto.

Just imagine... Leo has the trials set up and a major deal waiting in the wings upon good enough interim results. And interim results should not take very long, given the need, urgency and availability of both testing sites and patients.

At the very least, the company's announcing commencement of the coming phase 2 clinical trial should generate quite a bit of interest, given results from previous phase 2 clinical trails using Brilacidin, combined with the stellar RBL study results for C-19.

My speculation is that the above scenario is "almost certainly" the case.

How many other compounds have an SI of 426?

The difference between the two is almost certainly the number of shares sold to Aspire in the interim period.

[Longpicker]

I’ll take a stab at it. 60 trading days from Dec 9th, or Thursday March 11th.
I think by that date we will know some Material Facts. IMO

[kfcyahoo]

Thanks for that post, and another math word problem:).
I agree with your logic....and the notion that monitoring is of import.