GREY:ATBPF - Post by User
Comment by
IrishCanuckon Nov 26, 2020 3:46pm
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Post# 31982923
RE:Strategic Exit?
RE:Strategic Exit?Correct, you can buy Otena without buying the company and ATE loses all future rights to it, or we could sell it but retain royalties. There are a thousand business deals that could be structured. Pharma could buy ATE or just Otena and leave other IP intact. Both would make the share price go up
1) If we sold Otena then ATE gets cash and retains IP. That way the market value of each share is more subjective. If ATE received a billion dollars cash then maybe we'd get $800 million market cap because people would allocate $200 million off the top for further R&D, therefore its removed from shareholder value
2) If Pharma is buying the company at $4 per share for example, you're not going to see much buying and selling of shares other than around the $4 mark
I hope that helps