Ponzi Scheme...

[anonymous]

The definition of a Ponzi Scheme is an operation where the operator, an individual or organization, pays returns to its original investors from new capital paid to the operators by new investors, rather than from profit earned.

Iroko just borrowed $140 million dollars in June 2016 from new investors to pay back debt to the original investors.

So the question you should ask yourself is if Iroko is a Ponzi Scheme by definition?

 

[anonymous]

Love where you were going with this one Madeoff, but unfortunately, the last raise of money was not a Ponzi scheme on several accounts. The $140 MM that they received is a loan, not an investment per se, like you and I would invest. $100 MM was used to pay back a loan that they were paying 25% interest - amazing given that money is so cheap because interest rates are so low, but nobody would loan Iroko money. The balance is to be used for working capital. LOU has already spent $10 MM of the $40 MM that they had in the bank - that went fast. Iroko spends money like a crack whore spends money on drugs. Easy to understand when the SVP of sales has a week long party, I mean meeting in Monterey, CA and spends money like water. Iroko will blow through the remaining $30 MM in about 4-6 months. Then Iroko will go bankrupt and everyone will be fired. The creditors will own the 3 drugs and sell them off in a fire sale to try to recoup their investment.

 

[anonymous]

Iroko is not a Ponzi scheme but is probably commiting fraud on some level. Fraud is being deceitful for personal or financial gain. The whole company is a sham. There is no proof that their NSAIDs are any safer - none. Don't get caught in being part of a scam.