Mar. 21 at 9:37 PM
$IXHL There is only one possible catalyst in the near term. The
$75M cash position act as a floor. If the stock drops too much, toward
$2.00, the company would be worth less than the literal cash in its bank account. This usually attracts "vulture" investors or bottom-fishers who will buy just for the assets.
The gap between the stock price and the cash becomes so large that Activist Hedge Funds step in. Their pitch to other shareholders is simple:
"This management team is valued at negative
$50M, if we fire them and just give the
$75M back to shareholders, the stock is worth double what it is today."
They would fight to take over the Board of Directors, halt the expensive drug trials, and either liquidate the company or find a "Reverse Merger" partner with better tech.
At
$1.50, a larger pharmaceutical company or a private equity firm could literally buy the entire company for
$40M, walk into the bank, and take the
$40M, they would effectively be paid
$35M to own the company.
