Ceapro Inc V.CZO

Bloom Burton - What do we need to hear?

[prophetoffactz]

"The combination is attractive for shareholders of both companies, as it is expected to create a long-term sustainable business..." CZO/AEZS news release

What do we need to hear at Bloom Burton? Based on the news releases, ideally we hear a compelling path to a long-term sustainable business with catalysts in the near, mid and long-term. We want to be "thrilled" as advertized. We don't want to hear about a large cash burn chasing speculative, long-term, non-revenue generating pipeline opportunities that will exhaust financial resources before the company can reach key cash generating catalysts to support sustainability. They have talked about potential cost savings due to the merger(eg. eliminating the TSX-V listing), and prioritizing pipeline assets after the merger closes which could mean cutting some programs. They have talked about dedicating resources to near-term revenue generating opportunities. There are partnering opportunities.

"The Resulting Issuer will have the infrastructure to support development activities and potentially offer improved efficiencies, in addition to cost savings."

"The Resulting Issuer will also have an expanded development pipeline of products which it is committed to prioritizing as management evaluates what will provide the best overall potential..."

"Gilles Gagnon, Chief Executive Officer of Ceapro, added: “The transaction provides us with the additional capital and internal capabilities to fully support near-term revenue generating cosmeceutical and nutraceutical product development programs..."

The pediatric test data, test approval, and licensing deal for AEZS's diagnostic test will help the market understand cash levels and the potential of this revenue stream. Successful 10X PGX scale-up and a licensng deal will further help build confidence as well as a forward plan for PGX. Understanding the realizable pipeline milestones before cash is exhausted is important. What is the plan for the near-term revenue generating opportunities?

The S&P Biotech ETF is down over 10% since its recent high as interest rates climb again. It isn't clear as of yet that inflation is defeated and that the FED can cut interest rates due to inflation concerns. The bear market in biotech could reasset itself and we want a sulf-sustainble company not to be out of cash having chased long-term speculative pipeline opportunities the market won't be interested in.

[lscfa]

Disclose the damn CZO results for Dec 23 and Mar 24 qtr.