RE: RE: RE: TIMORON: eduction of 1,609,000 common They sold the last division Neurostream to Otto Bock FOR 10M$ and royalties on the patents that will be registered from that ex subsidiary. The consequence is that there is no ongoing operations at Victhom and only a President + accountant and 3,5M$ of cash / 20M shares. What will they do with the company, i do not know. One thing is sure the royalty on on the power knee is real than ever. The final version of the leg is on the market and Ossur will sell the leg 20000$ (reimburse by private insurance now). Assuming the amputee market is = 1G$/year and Ossur will grab 10% of the market and Victhom will collect between 5 to 15% on royalties that is a minimum of 5M$/year on a full year like 2012 or 2013. on a discounted basis the value of the patent could not be under 10M$.
The value of the company would be summarize as follow: cash in the bank in feb 2012= 3,5M$
patent royalties from the power knee10M$ net of 1M$ victhom annual expenses of 1M$ = 9M$
that assumes that they will use their 30M$ tax losses carried over
Net value is= 22,5M$
Or per share is = 1,13$
So do I think the 0.03$ is undervalued. the answer is obvious.