So I have been thinking on today's news. All in a
Post# of 72440
The deal in itself from a financial perspective is fine I guess. It is not spectacular because it is still more issuance of stock and more dilution, even if a minor amount. However, it is what I think the deal does for IPIX at the negotiation table that I think is the most significant. I think this deal keeps IPIX about as strong as possible in their cash position so that they can afford to bargain hard with potential partners. The additional money keeps them able to have credibility to threaten walking away from a deal if they dont like the terms. Granted IPIX is not going to be able to fund a whole lot of operating costs and additional trials for these handful of millions, but as they stated it will keep them going with pursing the regulatory side of things, which is also important to their potential partners. Lastly, I think this funding agreement also signifies that IPIX management feels they are close to a deal to bring in other outside funds. If they are not, or they feeling that they are getting unacceptable offers, I would expect that IPIX would have been looking for more significant funding from Aspire. Dip further into the 75M share shelf registration and get enough funds to run more trials. This all feels like a stop gap deal to leverage while we are about to make the leap into a much larger partnership.
Those are my thoughts. Take it with a grain of salt because, although I am short term pessimist, I am definitely an overly optimistic long.