RE:Is this Math Correct?Here's what I get using rough figures.
Assuming 80 million CZO shares fully diluted each CZO share is converted to .0236 AEZS shares. That's approximately 1.90 million AEZS shares.
Assuming 1.3 million AEZS shares fully diluted and assuming each of the $.01 warrants are exercised there will be about 1.90 million AEZS shares if all the warrants are exercised.
As a merger of equals that would be 1.9 million shares of the merged company for AEZS shareholders and 1.9 million shares of the merged company for CZO shareholders. Total shares of the merged company would be 3.8 million.
The above makes rough assumptions about the fully diluted share counts of both companies which need to be checked.
For sake of argument assume 2 million shares for AEZS shareholders and 2 million shares for CZO shareholders that's 4 million shares for the merged company. Put a C$10 price on AEZS and that's a $40 million market cap for the merged company. The merged company may have significalty more than C$40 million market cap in cash alone. Adjusting for inflation AEZS also received $40 million upfront from Strongbridge and that could be relicensed for North America soon pending trial results.
archeo753 wrote:
So with the new exchange ratio CZO shareholders get 0.02360 shares of AEZS for each 1 CZO share. AEZS mshareholders get a virtually free .477 share warrant upon closing. So the true value of a current AEZS is today's price $11.55 X 1.477 = $17.06. Since this is supposedly a merger of equals shouldn't the current value of a CZO share be $17.06 x .02360 = $.4026. What am I missing?