I’ve been criticized for saying Aspire sell when they get new shares for years. Let’s say you are the fund manager for Aspire. After you agree to the $20M agreement with IPIX, you decide to hold long-term instead of sell. At the end of the $20M agreement, you are losing millions on paper (see historical prices). Assuming somehow you still have a job, you decide to double down and give IPIX another $30M. Your strategy is still to hold after receiving new shares. After losing millions more on paper, you think third time’s a charm and agree to another $7M agreement. Now you are losing tens of millions on paper and to add insult to injury, your partner is dating someone else.

Those who think Aspire is/was holding will probably think the MFO will hold also. That’s certainly possible, but the provision of no conversion if holding more than 9.99% of the OS is there for a reason. Let’s say the MFO has 16.3M shares and want to convert more. The only way they can do that is to sell first. Leo expects them to sell, so he puts on a limit on how much they can convert. If Leo expects them to hold, there’s no need for such provision.