Replies to post #336433 on Innovation Pharmaceuticals Inc (IPIX)

[loanranger]

"Do I misunderstand?" Probably not.

But there's no "loophole", if by that you mean a way that shares COULD be sold to Aspire.

Here's my understanding of it:
The first closing date was 12/9.
"“Second Closing Date” means the date on which sixty (60) Trading Days have elapsed from the First Closing Date,"

"the Company covenants it will not sell any securities under or otherwise use the Aspire Purchase Agreement until thirty (30) business days after Second Closing Date, or ninety (90) business days after the First Closing Date if the Second Closing Date does not occur. "

60 trading days plus 30 business days is 18 weeks by my count....or 4 months plus.

So the Aspire Agreement is unavailable until late April if my understanding is correct. The parties COULD agree to waive that but if the Purchasers still have shares to unload it wouldn't be in their interest.

The problem for the Company is that, contrary to the Aspire terms, the Preferred investors are under no obligation to buy preferred except on the two stated closing dates, so IPIX can't raise funds as needed as they can with Aspire.
It's reasonable to think that some warrants will be exercised for more preferred given that the investors should be able to convert them profitably but the timing of that is all up to them.

I believe the whole package gets IPIX $15M if all the warrants are exercised. Is that the way you read it?

The warrants expire in 18 months and 24 months from the closing dates.

I don't see the advantage other than immediate access to the funds from the first closing.