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Innovation Pharmaceuticals IPIX
Posted On: 12/09/2012 4:35:00 PM
Post# of 72446
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Posted By: Kelt

Latest follow up from Leo explaining the Financing.Works well for me.


Sample of a response to a shareholder question



I believe you may be confusing our equity line with other lines which may be toxic and where floor prices are needed. 


We control when we convert, and we do so after the trading has ceased on any particular day with no advance notice (after 4pm).  What that means is the fund can't hedge (short sell).  We are in the drivers seat.  Think of it this way.  Financings where a few days advance notice has to be given to the lender, are often death spirals as the lender or market makers can short and the more  the shares go down, the more shares they receive.  The more they make.  This deal is the opposite.  Its in Aspire's interest for the shares to go up as they can be holding a sizable position based on our timing of selling them stock.  It may take a few readings of the deal but I believe afterwards you'll understand why I'm pleased with the negotiated deal.  



Best 


Leo













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