RE:RE:Is this Math Correct?Apostata wrote:
This is perhaps the most important question I can think of. Like, are we being fleeced here?
H.C. Wainwright had a C$100 million market cap target price for AEZS before the merger.
As a merger of equals that may have valued CZO at ~C$1.25 per share target price.
For half the company CZO shareholders picked up C$40 million cash and a potential diagnostic cash cow before key trial data expected in Q3. CZO's near-term revenue generating opportunities are said fully financed. CZO also picked up key human infrastructure as it makes its next step as a biopharma. When AEZS's test was licensed to Strongbridge previously AEZS received an inflation-adjusted ~C$40 million upfront plus additional potential payments and royalties. What AEZS will get this time is yet to be seen but being on the Board of Directors of AEZS Gilles has been well positioned to understand the potential terms of a new deal as talks have been ongoing for some time. AEZS also has a number of portfolio assets potentially before Phase I trials that target markets in the billions. Phase I human data is where the real value of these assets can be established. These assets are risky but again Gilles is well positioned to know where they stand currently ahead of Phase I. CZO may have also picked up ~C$100 million in tax loss carryforwards. Previously Gilles said its $40 million immune booster plant had a $100 million net present value. Now CZO can add the value of potential tax loss carryforwards as PGX also reaches the decision point for mass industrialization expected in Q3. The ultimate value of wthis merger will be told with what comes next.