RE:Market Cap"So if the goal is to depress the market cap of CZO to such a low level that the merger looks like the only path forward they are succeeding. Pathetic. AEZS is starting to look like the dominant company especially when you take into account the near 50% premium that AEZS shareholders get with the warrants they recieve prior to closing."
It has been called a merger of equals. AEZS and CZO shareholders each get 50% of the new company assuming all of the AEZS warrants are exercised.
Line up AEZS's significant cash, significant tax loss carryforwards, the value of the diagnostic test, and other assets and what is the real value of AEZS? Given it is a merger of equals CZO is being valued the same. If AEZS's real value is C$100 million it may be a C$200 million deal all totaled. HC Wainwright had a US$15 price target on AEZS which is about $100 million. It may take completion of the merger, detailing of a specific plan to commercial payoff, a diagnostic deal, and a PGX deal, etc., to realize the value but Gilles is on the Board of AEZS and should have a very good idea concerning the deals for the diagnostic, etc. Ronnie Miller is "thrilled" with how the complementary assets can be used to fuel CZO's plans for significant growth. The market may simply be lacking details at the point.
“We are thrilled with this exciting transaction to merge with Aeterna and combine two complementary companies and teams, in support of our plan to drive significant growth,” said Ronnie Miller, Chairman of Ceapro. “After careful consideration, we believe this transaction is the best way forward for Ceapro and our valued shareholders.”