Quote:NO ONE knows whether Aspire has sold one single share of stock that they have purchased from IPIX.
Well, that's not entirely accurate. People at Aspire know.
But WE do not. To assume that every single share Aspire has bought immediately gets sold in the market -- is an assumption based on NO facts.
Some may have been sold, some may be retained. We have no idea of any numbers involved.
I’ll start with what I’m pretty sure your reply will be to what I post below.
LPC and Aspire are not valid comparisons!
I agree because Aspire has a much better reputation but if you read the purchase agreement between Aspire and IPIX and the purchase agreement between LPC and AVXL you will discover that outside of the exact number of shares and how the daily limit is enforced the agreements are very very similar.
I believe that IPIX management does know what Aspire does with their shares. If not, try to explain how AVXL was able to put that information in their SEC filings?
“I have learned a great deal about these LPC type financing agreements from Anavex’s filings.
Ex. “The Company previously filed a registration statement on Form S-3 (File No. 333-207600) on October 26, 2015, which was declared effective on September 6, 2016 (the “2016 Registration Statement”), which registered for sale by Lincoln Park up to 6,754,609 shares of our common stock issued or issuable under the Purchase Agreement, inclusive of 269,397 shares of common stock issued or issuable to the Selling Security Holder for no cash consideration as commitment shares.
6,633,656 shares of common stock registered under the 2016 Registration Statement have been issued to Lincoln Park and 6,475,575 have been resold by Lincoln Park as of the date of this prospectus. No commitment shares are being registered under this prospectus.”
http://yahoo.brand.edgar-online.com/displayfi...253d660924
What I learned.
Apparently both parties know exactly what LPC is doing with their shares as they purchase them. (Because this information comes from Anavex not LPC). I didn’t know that.
Notice how they have roughly the same number of shares unsold as the original “commitment shares”? I believe that’s probably because they use those to sell on the day they are required to purchase shares. They get to purchase at the lowest price at any single point during that trading day (or lower of previous 10 days if memory serves). So why not pick a slow period during the day and create an “artificial low” for your required purchase price?
A lot of people assume this means LPC type companies want to decrease the share price of their clients (toxic financing). I don’t believe that’s the case. Remember they want to sell those shares the next day for more than they paid so they don’t want the share price to decline. They would love to see it increase on that day.
If I understand the model correctly, since they get commitment shares at the beginning of the contract, technically they would need very little of their own capital for these agreements.
All imho only of course. “
Now we also know for a fact that Aspire must have at least sold some of the shares put to them or they would be over the 5% reporting threshold.
“During the period from October 25, 2013 to March 5, 2015, the Company had completed sales to Aspire Capital totaling 8,890,379 shares of common stock generating gross proceeds of approximately $20 million.
“During the period from March 30, 2015 to June 30, 2017, the Company had completed sales to Aspire Capital totaling 14.7 million shares of common stock generating gross proceeds of approximately $16 million
“From July 1, 2017 to September 1, 2017, the Company generated additional proceeds of approximately $2.1 million under the March 2015 common stock purchase agreement with Aspire Capital from the sale of approximately 2.6 million shares of its common stock.
8,890,379+14,700,000+2,600,000 = 26,190,379
Add those 26 million shares to Aruda’s 9 million that filings prove he sold and you get ~35 million shares that were likely sold.
Sort of sticks a knife in the concept that “No one is selling so it must be “naked shorts” IMHO”
Not really as negative a post as most will probably accuse me of. Management has done a very good job being frugal with funds. Hopefully Prurisol is successful because it will remove Aspire from the picture if it is!
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