They were granted ~2.7M shares and 8M warrants wit
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Posted On: 06/28/2018 8:10:45 PM
Re: NickAidenNY #46942
They were granted ~2.7M shares and 8M warrants with an exercise price of $0.38 for that $5M contingent guarantee.
Also, my understanding is the 5-day average is the 5-day average preceding the announcement. They won't be buying the pop. They will be buying the pre-pop price and likely immediately selling into the post-pop profit. If the stock goes down as a result of one of those three milestones, then the deal doesn't favor Aspire which is why they were paid 2.7M shares and $8M warrants to take the risk.
The bad is as I said. Assuming we succeed, we gave up 16-24M shares for $4M-$7M and a guarantee to purchase up to $5M at pre-announcement milestone prices over the next three months. Those are financing terms that are significantly worse (per share) than we have ever dealt with. This is commensurate with the depths to which our stock price has fallen and the dire straits we find ourselves in financially. This whole agreement essentially is a defense (hopefully complete and absolute) against losing our necessary funding line in the event that our stock price falls below $0.25.
Aspire took us to task on this agreement. It illustrates that they are not our buddies but a simple business partner. If you still believe Aspire is our buddy, then this deal highlights the high degree of risk they are taking in the relatively ugly terms agreed to by IPIX. I sincerely hope we won't have to repeat this exercise at the end of September.
Also, my understanding is the 5-day average is the 5-day average preceding the announcement. They won't be buying the pop. They will be buying the pre-pop price and likely immediately selling into the post-pop profit. If the stock goes down as a result of one of those three milestones, then the deal doesn't favor Aspire which is why they were paid 2.7M shares and $8M warrants to take the risk.
The bad is as I said. Assuming we succeed, we gave up 16-24M shares for $4M-$7M and a guarantee to purchase up to $5M at pre-announcement milestone prices over the next three months. Those are financing terms that are significantly worse (per share) than we have ever dealt with. This is commensurate with the depths to which our stock price has fallen and the dire straits we find ourselves in financially. This whole agreement essentially is a defense (hopefully complete and absolute) against losing our necessary funding line in the event that our stock price falls below $0.25.
Aspire took us to task on this agreement. It illustrates that they are not our buddies but a simple business partner. If you still believe Aspire is our buddy, then this deal highlights the high degree of risk they are taking in the relatively ugly terms agreed to by IPIX. I sincerely hope we won't have to repeat this exercise at the end of September.
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