Ceapro Inc V.CZO

Chemicals Specialty Chemicals

Ceapro Inc. is a Canada-based biotechnology company. The Company is involved in the development of extraction technology and the application of this technology to the production of extracts and active ingredients from oats and other renewable plant resources. Its primary business activities relate to the development and commercialization of natural products for personal care, cosmetic, human, and animal health industries using technology, natural, renewable resources, and developing products, technologies, and delivery systems. The Company's products include a commercial line of natural active ingredients, including beta glucan, avenanthramides (colloidal oat extract), oat powder, oat oil, oat peptides, and lupin peptides, a commercial line of natural anti-aging skincare products, utilizing active ingredients, including beta glucan and avenanthramides and veterinary therapeutic products, including an oat shampoo, an ear cleanser, and a dermal complex/conditioner.

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Ceapro Inc > Is this Math Correct?

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Comment by archeo753on May 17, 2024 4:32pm

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Post# 36046375

RE:RE:Is this Math Correct?

Ok. So it looks like CZO is appropriately valued at $ 0.27 today in relation to AEZS sharecount and market cap. Thanks. Knew there must be something I was missing.

prophetoffactz wrote: 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?