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 > Merger of equals

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Comment by prophetoffactzon Dec 14, 2023 9:33am

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Post# 35784144

RE:Merger of equals

Maybe you have to double CZO's market cap instead to get the new comapnies market cap given the warrants issued to AEZS.

prophetoffactz wrote: "Following the closing of the Transaction, the former shareholders of Ceapro will own 50% of Aeterna and the pre-Transaction securityholders of Aeterna will own the remaining 50%, assuming the exercise of all Transaction Warrants."

We have a merger of equals with each companies shareholders owning 50% of the new company.
AEZS is a C$14 million market cap company according to Stockhouse. Doubling that to account for CZO shareholders owning 50% of the new company would mean a ~C$30 million market cap. CZO had ~C$11 million cash at September 30, 2023 and AEZS had US$38 million cash as of September 30.

Does that mean a new ~C$30 million market cap company with a total of ~C$60 million cash? The new comapny has a NASDAQ listing and Raymond James and Bloom Burton potentially providing analyst coverage.

Need to understand the commercial plan from there but AEZS has products for launch with a burn rate currently. CZO could have the cash it needs to advance its pipeline ahead of key strategic milestones.