Posting by request.... this was in response to the latest Seeking Alpha article. Would have responded sooner but I don't check my iHub mail all that often. In any case I put it up in the comments section as well --
This SA author is not understanding the Aspire agreement. Aspire doesn't care if the stock is $20, $50, or $100. Since they mainly purchase at an average of the three lowest closing prices during the previous twelve trading days (ending on the trading day immediately preceding the purchase date) they can almost always sell immediately for a profit. This is essentially their business model, they are not long term holders of stock. There is virtually ZERO "unmitigated exposure" at any price. This Aspire agreement is far preferable to his proposed "traditional funding placement" which he himself said in his previous article would carry a hefty discount to the current price. With Aspire you have the opportunity to sell at increasing prices as clinical trials progress.
Again, there are virtually no potential risks to mitigate so there is no incentive to "keep share prices low." In any case, shorting of CTIX shares is not allowed by Aspire per the agreement.
I do agree that partnering an indication is the best solution. I also wholeheartedly agree with the need to put an end to the current legal incentives to file these frivolous suits.
This SA author is not understanding the Aspire agreement. Aspire doesn't care if the stock is $20, $50, or $100. Since they mainly purchase at an average of the three lowest closing prices during the previous twelve trading days (ending on the trading day immediately preceding the purchase date) they can almost always sell immediately for a profit. This is essentially their business model, they are not long term holders of stock. There is virtually ZERO "unmitigated exposure" at any price. This Aspire agreement is far preferable to his proposed "traditional funding placement" which he himself said in his previous article would carry a hefty discount to the current price. With Aspire you have the opportunity to sell at increasing prices as clinical trials progress.
Quote:For those that see Aspire as a fair and balanced agreement, think for a moment as to whether Aspire would expose themselves to a situation whereby they could be required to purchase one million shares for $20.00 each. After all, that is what the agreement states. Cellceutix can sell stock to Aspire on a weighted average price for a stated number of trading days. Does any investor truly believe that Aspire would be so naive as to create such an unbalanced agreement? The exposure is simply too significant for Aspire to be backed against the wall and be susceptible to purchase stock due to market manipulation. They simply would not leave unmitigated exposure.
Again, there are virtually no potential risks to mitigate so there is no incentive to "keep share prices low." In any case, shorting of CTIX shares is not allowed by Aspire per the agreement.
Quote:Aspire has incentive to keep share prices low to mitigate potential risks.
I do agree that partnering an indication is the best solution. I also wholeheartedly agree with the need to put an end to the current legal incentives to file these frivolous suits.
2
