I am not sure how you came to your conclusion “you think the MFO will convert all $10M into Class A shares at once” from my statements below:
“In a worse-case scenario where IPIX would need to tap into the entire $10M let’s say this MFO ends up paying .15/share when all is said and done after converting warrants into common shares. A key part of this deal is that there are limits on how much and when shares can be sold to insure that shares are not flooded on the market.”
“If the Term Sheet deal does get finalized this quarter than most of the $10M will not be needed and the total outstanding shares will be less than 200M which would equate to an even higher share price than the above example.
As far as your following statements and attachments, can you understand why many longs on this board believe this was FUD or at a very minimum soft bashing?
“Preferred convertible is called death spiral for a reason.”
“Before the MFO decides to convert all the shares into Class A, they are our enemy.”
And from your attachment:
What is a 'Death Spiral'
Death spiral is a term applied to a type of convertible debt that stimulates an ever-increasing number of shares, leading to steep stock price drops. The convertible bond, unlike a conventional convertible one, converts into a fixed value instead of a fixed number of shares. If this bond is converted into stock, the price of the stock tends to drop due to the increased supply of shares. This, in turn, encourages more conversion because the convertible debt owners can obtain — and then sell — even more shares of the stock with the fixed value feature. Theoretically, the death spiral can end with the stock at or near a zero dollar value.
A couple of weeks ago you re-posted a ihub post of a conversation between PlentyParanoid (scottsmith) and justfactsmam (loanranger) and I posted that as a long you should be more careful to not repeat FUD from 2 of the most well-known bashers. You never responded. You posted the VC article and Drano pointed out to you that it had zero validity in biotech license deals. You reposted the same article.
I have always respected you as one of the high value posters with you posts on IPIX science and competitive marketplace but your recent posts have been disappointing. I too have been invested in IPIX since 2011 and I have a sizable position with an average cost basis of over $1. I am as pissed off as anyone that IPIX is sitting at 20 cents but you can simply go over to the other board that you moderate at and it is obvious that a vast majority of posters on that site are full time bashers. Why would someone spend years continually bashing IPIX management and science unless they have a financial interest in seeing it fail? Sox, you are good at crunching numbers so what is your take on what a license deal with 2 indications of B will look like? If the Term Sheet deal happens in the next 10 months will this MFO deal really have any major significance? Why are you and others spending so much energy on the MFO deal vs focusing on where IPIX will likely be in the near future?
“In a worse-case scenario where IPIX would need to tap into the entire $10M let’s say this MFO ends up paying .15/share when all is said and done after converting warrants into common shares. A key part of this deal is that there are limits on how much and when shares can be sold to insure that shares are not flooded on the market.”
“If the Term Sheet deal does get finalized this quarter than most of the $10M will not be needed and the total outstanding shares will be less than 200M which would equate to an even higher share price than the above example.
As far as your following statements and attachments, can you understand why many longs on this board believe this was FUD or at a very minimum soft bashing?
“Preferred convertible is called death spiral for a reason.”
“Before the MFO decides to convert all the shares into Class A, they are our enemy.”
And from your attachment:
What is a 'Death Spiral'
Death spiral is a term applied to a type of convertible debt that stimulates an ever-increasing number of shares, leading to steep stock price drops. The convertible bond, unlike a conventional convertible one, converts into a fixed value instead of a fixed number of shares. If this bond is converted into stock, the price of the stock tends to drop due to the increased supply of shares. This, in turn, encourages more conversion because the convertible debt owners can obtain — and then sell — even more shares of the stock with the fixed value feature. Theoretically, the death spiral can end with the stock at or near a zero dollar value.
A couple of weeks ago you re-posted a ihub post of a conversation between PlentyParanoid (scottsmith) and justfactsmam (loanranger) and I posted that as a long you should be more careful to not repeat FUD from 2 of the most well-known bashers. You never responded. You posted the VC article and Drano pointed out to you that it had zero validity in biotech license deals. You reposted the same article.
I have always respected you as one of the high value posters with you posts on IPIX science and competitive marketplace but your recent posts have been disappointing. I too have been invested in IPIX since 2011 and I have a sizable position with an average cost basis of over $1. I am as pissed off as anyone that IPIX is sitting at 20 cents but you can simply go over to the other board that you moderate at and it is obvious that a vast majority of posters on that site are full time bashers. Why would someone spend years continually bashing IPIX management and science unless they have a financial interest in seeing it fail? Sox, you are good at crunching numbers so what is your take on what a license deal with 2 indications of B will look like? If the Term Sheet deal happens in the next 10 months will this MFO deal really have any major significance? Why are you and others spending so much energy on the MFO deal vs focusing on where IPIX will likely be in the near future?
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