Replies to post #44518 on Innovation Pharmaceuticals Inc (IPIX)

[noretreat]

All that "slow bleed" was a clear invitation to buy. Hope everyone jumped at it.

[BigJeff]

John B, you are absolutely correct! Five-star post of the month!

[loanranger]

When you use the term "the court" I assume that you are actually referring to the Trustee for the estate of Polymedix. The US District Court itself naturally wouldn't be in a position to buy or sell any of the estate's assets. Please let me know if that's a bad assumption.

Are you actually suggesting that the Trustee, with the permission of the Court, would have shorted the shares in question for the period of time ("'for two months") from the date of the final court order approving the sale to the time of the filing of the Registration Statement (plus, I guess, whatever time it takes for the Statement to be declared Effective), using shares borrowed from Aspire? I think that would be a pretty unique, and clever, action for a Bankruptcy Trustee to take...I've never heard of it being done before...and I wonder how it could be shown to be true.

Of course, if the Trustee anticipated doing that, there would have been absolutely no need for them to include the following in the agreement:
"(ii) At any time between one day after the Closing and three hundred and sixty-five (365) days after the Closing, the Seller or any holder of the Registrable Securities may make written demand upon the Purchaser for the Purchaser to repurchase the Registrable Securities for $1 per share."

http://www.sec.gov/Archives/edgar/data/1355250/000135525013000032/exhibit_2z1.htm

[Whooops]

Spot on John B! I am glad they took their time selling those shares in to the market. I thought they would be more aggressive. We should be back to normal buying and selling pressure.

[tootalljones]

excellent post John B. How about if they only sell at the rate of 40K shares per day? ... even this would probably be a drag on the price; point being, we may have a ways to go here. One thing clear is the anticipated timeline for cohort 6 completion, and hopefully the release of news/results by year end. 2 months, 10 days should get us there, and indeed, there is no law saying we may not get some great news between now and then, unrelated to financing/partnershiping. If you believe in the company, any fool should be adding now.

[steelyeye]

I agree, nice analysis JB... and if you are close we should be done, or almost so, with those 1.4M.

The only other explanation is continued MM boxing of the SP to delay uplist.

Bankruptcy court hedged the 1.4 million shares IMO.
That is what hedging is for, to take risk off the table.
There is no way that the court would risk the debtors
money to the whims of the stock market for two months, let
alone an individual security. It is the courts job to get money
to the debtors in the safest, quickest, most efficient way possible.
Not to gamble in the stock market. I believe that DMatt
had it right that Aspire shares were hitting the market, but
it was the court selling the Aspire shares. Most likely the
court borrowed 1.4 million shares from Aspire for a fee and
will return these shares to them after they receive the registered
shares.

My original thought was the court would go to an institution
and have them short 1.4 million shares, and then return them
when they get the shares. The last short sales data shows only 97,000 short for a 35% drop.
So this didn't happen.
Aspire would have most likely been the only ones that they could
borrow that amount of shares from.

If they sold these shares over a 20 trading days, that would
amount to 70,00 shares a day. This could have easily caused the slow bleed in SP.
Then throw in any uncertainty, breaking of technical averages, etc, and you get a decline like we did.

All IMO of course.