RE:RE:RE:RE:RE:Re-Imagine"Yes 50/50 but no value mentioned"
It is a merger of equals with the shareholders of each company receiving 50% of the new company. H.C. Wainwright has a US$15 target for AEZS likely largely driven by the diagnostic test. Novo Nordisk once paid ~C$250 million(cash, equity) for the diagnostic plus tiered royalties. H.C. Wainwright's target works out to ~C$100 million market cap for AEZS. As a merger of equals CZO is arguably equally valued. That makes this a potential C$200 million merger. AEZS's diagnostic test is approved for adults in the US and Europe and the trial for children(the most important market) should now be fully enrolled. It could be approved for children this year for the US. There is no other dedicated diagnostic for human growth hormone deficiency. AEZS's has been working on licensing and Gilles is in the catbird seat being on AEZS's Board of Directors. Gilles should know the value of the deals and about decisions to move AEZS pipeline assets into human trials. The market is not positioned to know. CZO has also been in talks concerning PGX deals and Ronnie Miller is "thrilled" with how the merger can complement CZO's plan for significant growth. The market doesn't know the PGX deals that have been under discussion. With approval for AEZS's diagnostic, the announcement of an AEZS licensing deal, the potential move of an AEZS asset to clinical trials, and a PGX deal as PGX hits 100L with Natex, as well as other CZO events we've discussed, and the announcement of a plan showing how AEZS's resources will help CZO's plan for significant growth the market will see what this is all about. The market is not in a position to know the details yet. Gilles has likely moved CZO to NASDAQ ahead of events for a very good reason. As an insider of both companies he is very favorably positioned. We are early.