RE:Reading on new shares valuation?rankininlet wrote: Do I have this correct? In rough numbers, 25B shares at .015x each, rounded up equals market cap of new entity of ~$400 million which includes ~$150 in cash. If we choose a range of future value of the new PLI between $1.20B and $1.60B pending some near term positve catylists, then the risk/reward for retail is between 3/1 and 4/1 on the new money retail invests in the rights offering notwithstanding that retail is getting ripped due to massive dilution occurring thru refinance. Help me out please, is between 3/1 and 4/1 risk/reward a fair representation a potential coming from participation in buying into the rights offering?
rankininlet, your estimation is good. Here are my feedbacks.
1. I would put your 'near-term' Market cap target of $1.2-1.6B to a longer time frame (~2-3 years and not just by H2 2019), if all the positive catalysts
successfully materialized as annouced in April 1 Q4, 2018 report.
2. I would also estimate the downside risk, if there's further delay/approval/commerization in plasminogen's program or other negative developments (e.g. no deals). In these senarios, then sp will decline from the reset MC $380M (25Bx1.521 cents). To what level, nobody knows.
3. If number 2 instead of number 1 occurs, then there will likely be another equity raise a year from now (to maintain a healthy runway=sufficient cash position), imo. GL!