RE:RE:RE:RE:RE:Proph. the manipulatorCiao wrote: The whole SHAM of a merger is summarized above. Worth reading again.
Essentially CZO is throwing AEZS a lifeline to maintain a listing on NASDAQ with this whole merger of two equals BS. Takeover CZO, rollback shares about 3X to keep the share price artificially high, then try to raise funds touting PGX.
AEZS maintains its NASDAQ listing. CZO wants a NASDAQ listing and gets it. Together they will have increased news flow and an increased asset base to attract analysts and other market player.
Together the companies can streamline costs:
1) The TSX-V listing will be dropped.
2) They will only need one CFO, Director of Business development, etc., and only need one IR firm, etc.
3) The number of members of the Board of Directors can collectively be reduced.
4) The companies will share e
stablished pharmaceutical research and development capabilities and infrastructure to support development activities. Together they will have royalty revenue from AEZS's diagnostic test plus from CZO's base business. As the news release says capital from AEZS will be put towards CZO's near-term revenue generating programs to bolster near-term revenue and sustainability. Market conditions want sustainable businesses. The stated goal in the news release is a long-term sustainable company. AEZS's diagnostic deal could provide significant upfront money and milestone payments in addition to royalties. PGX could provide the same. Other assets can also be partnered from AEZS and CZO.
The company will have more a more diversified pharma portfolio composed of assets from AEZS and CZO helping to manage risk.
"The combined company will be well-capitalized to support ongoing commercial operations while strategically investing in product research and development to advance differentiated, innovative products." news release “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.” news release