They can call of this whole financing with 30 days
Post# of 72440
(Total Views: 435)
Posted On: 10/10/2018 4:26:46 AM
They can call of this whole financing with 30 days of the initial closing, which is expected to be around the 9th of Oct. this option will cost 20% above the amount raised. Clearly IPIX is hoping to get a deal done with this time frame.
The second caveat is the 90 days you refer to.
the Company may call for cancellation any or all of the warrants following 90 days after their issuance, for a payment in cash equal to 8% of the aggregate exercise price of the warrants being called. The warrants subject to any such call notice will be cancelled 30 days following the Company’s payment of the call fee, provided that the warrant holders have not exercised the warrants prior to cancellation.
In this scenario however the holders could exercise all their warrants in the 30 window, after IPIX has given notification.
IPIX will most likely have to have the deal completed in order to give notice of the cancellation here.
The only worry I see here, is that there is no lower limit in the share price stated in this financing agreement, depending on how low the share price goes and how many warrants the holders choose to exercise, the dilution of this financing could be quite significant.
IPIX obviously had to raise the cash. I just struggle to understand why the contract with Aspire of last year wasn't utilised back in July to just raise $4mil instead of $2 mil raised in the offer with the milestone payments, that would have given them enough to see this deal through to completion and would have avoided this new financing deal.
The second caveat is the 90 days you refer to.
the Company may call for cancellation any or all of the warrants following 90 days after their issuance, for a payment in cash equal to 8% of the aggregate exercise price of the warrants being called. The warrants subject to any such call notice will be cancelled 30 days following the Company’s payment of the call fee, provided that the warrant holders have not exercised the warrants prior to cancellation.
In this scenario however the holders could exercise all their warrants in the 30 window, after IPIX has given notification.
IPIX will most likely have to have the deal completed in order to give notice of the cancellation here.
The only worry I see here, is that there is no lower limit in the share price stated in this financing agreement, depending on how low the share price goes and how many warrants the holders choose to exercise, the dilution of this financing could be quite significant.
IPIX obviously had to raise the cash. I just struggle to understand why the contract with Aspire of last year wasn't utilised back in July to just raise $4mil instead of $2 mil raised in the offer with the milestone payments, that would have given them enough to see this deal through to completion and would have avoided this new financing deal.
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