Zenith questionHere is a question that just occurred to me. I believe that this has been discussed before so apologies up front for the repeat.
Zenith was restructured into Zenith Capital and Zenith Epigenetics in 2016 and Zenith Epigenetics is wholly owned by Zenith Capital.
I have quite a few Zenith shares sitting in my trading account and they have a value of $0.00...makes sense because they are not on a market.
So even though these are hypothetical questions now they could be relevant in the future;
- Suppose that Zenith Epigenetics is sold in a CVR deal or sold out fully. Presumably that money will be paid to Zenith Capital. Suppose that Zenith Caplital decides to retain all of that money to privately invest in new biotech investments or put investments in RVX and our shares remain illiquid. Does Zenith Capital have any obligations to pay out existing shareholders and if so how would the price be establiished?
- Now what happens if Zenith Capital is purchased? Is it fair to assume that the proceeds will be dispursed to all shareholders proportionate to their share holdings?
Given that royalties from RVX will at some point flow to Zenith Capital I doubt Don would sell Zenith Capital, unless the price was very significant.
If I recall this all goes back to the issue of when the restructuring happened how were shares allocated and I've forgotten the answer (apologies again as I should go do my homework). I think we now own equal shares in both Zenith Epigenetics and Zenith Capital.
I'll assume that the big players like Eastern are going to want a payback at this stage.
Another question is, given the structure of the organization why would Don not create liquidity through an IPO and raise capital? Preumably he does not think they are far enough along in their development to generate a strong price through the market.
If the mCRPC trial with zen3694 shows clear indications of success then many options begin to open up such as BP interest. Zenith Capital could just sell off the zen3694 and related compounds and use the gain to fund some of their other 2500 compounds.
Oh well, I'm just foolishly speculating. But I would hate to think that there will not be a way to get value out of shares at some point.
In the abstract just published it looks like they have found very useful information about markers for zen3694 indicating it works in an epigenetic manner and provides blood tests for management of the mCRPC trial.
So as others have observed, Zenith has been very silent lately. Well not just lately they've always been slient so no news there.
GLTA
Cheers
Toinv