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 > Future

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Comment by Ciaoon Jan 23, 2023 10:01am

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Post# 35239556

RE:RE:RE:RE:RE:RE:RE:RE:RE:RE:Future

Morningstar's current quantitative valuation of CZO is just under a dollar at .98 which they call fair value. Being a quantitative model, it doesn't give any value to their R&D pipeline and the potential for future cash flows from any commercial out-licensing deals or other markets it may enter as a result. The shares are trading at a significant discount to the base business and much much more to the overall business.

As for their distibution agreement with Symrise, it's been renewed each time. They are long term partners and Symrise helped with the funding of the expansion of the plant years ago. J&J buys AV / BG from Ceapro via Symrise, I don't see Symrise jeopardizing their relationship with either J&J and Ceapro, there's no reason to.

prophetoffactz wrote: "There's a significant difference and no shame with promoting a company with a solid and profitable business so it trades at fair value"

What's the value of a business dependent on a 3 year agreement with its major distributor with a 3 year option? What happens if they go elsewhere in the next 2 years? Does CZO need to get control of distribution to see a higher multiple? If CZO had its own distribution with clearer control over the next ten years as opposed to next three could it double the multiple?

"CZO has a solid base business and a solid R&D pipeline."

We will know how solid the pipeline is once full data packages are released and validation is received from deals. We are still early and before the crowd; but we can get in for next to no cost as long as we are willing to wait.