AEZS approached CZOTalk about negotiating from a position of strength to weakness (p. 25 of info circular)
In October 2022, the Board became aware that Aeterna Zentaris was conducting a strategic review of its operations and of the opportunity to combine Ceapro’s business with the business of Aeterna Zentaris. After analyzing the merits of this opportunity internally, in early November 2022, the Board decided to express to Aeterna Zentaris its interest in pursuing a combination of their two businesses. However, after initial exploratory discussions, Aeterna Zentaris decided not to advance Ceapro to its short-list of companies with whom it would pursue negotiations towards a potential transaction. Subsequently, in December 2022, Aeterna Zentaris informed Ceapro that it was interested in re-engaging with Ceapro regarding a potential business combination transaction. Ceapro and Aeterna Zentaris then entered into a confidentiality agreement effective December 15, 2022 and began discussions in order to explore the potential terms of such a transaction.
I wonder if it was Gilles that initated this back in Oct. 2022? (i) that the proposed strategic transaction would be structured as an all-stock merger acquisition by Ceapro of Aeterna Zentaris, with the shareholders of Aeterna Zentaris owning between 41-45% and the shareholders of Ceapro owning between 55-59%
Yes, this is essentially a takeover of CEAPRO at liquidation valuations, but instead of CEAPRO having a larger interest in the new entity, we could end up with a 50 / 50 deal. Putting lipstick on a pig and calling it a merger of equals, how pathetic.