RE:RE:Not one comment in favor of the merger...jrsloan60 wrote: If this was good for Ceapro the shares would be going up with some volume.
It's two off-the-radar microcaps with retail shareholder bases. Look at CZO's message board as an example. There isn't much interest in the science yet this is a biopharma. The specific product plan, priorities, and burnrate for the new company to specific product revenue is not clear. There is a history of loses with AEZS. Mergers come with their own risks. If the merger doesn't close for CZO what comes next? If CZO is owned by shareholders who don't follow the universal recommendation of the Board of Directors and the Special Committee is this company materially handcuffed? The market has also been hit with a significant roll-back admidst all the uncertainty and markets can punish roll-backs. While the risks may be front-end loaded with this deal what happens next?
Get the uncertainty about the merger behind the company, announce diagnostic test data from the trial that was expected to be enrolled by December 2023, announce a diagnostic deal, complete the PGX scale-up to 100L(point of decision for mass industrialization), and announce a PGX deal and then where will the price of the stock be? There are more potential events in the daisy chain as listed below. The upfront risk or clouds around the deal and roll-back currently could be replaced by a chain of events on NASDAQ if the deal closes. There could be analyst coverage. The forward plans for the new company could be much more clear. Gilles wants the story on NASDAQ and he's inside both companies. He has Ronnie Miller by his side and Ronnie said he's 'thrilled". The merger announced an exchange ratio but the absolute value of the merger may only be clear to the market with events.
"The combination is attractive for shareholders of both companies, as it is expected to create a long-term sustainable business..." news release
The path to a long-term sustainable business is key.
The merger provides capital and internal capabilities from AEZS to "fully support" CZO's near-term revenue generatng development programs. Gilles Gagnon, Chief Executive Officer of Ceapro: “The transaction provides us with the additional capital and internal capabilities to fully support near-term revenue generating cosmeceutical and nutraceutical product development programs..." news release With financing and internal capabilities in place you can see why Ronnie Miller could be "thrilled", Gilles is 'excited' and the Chair of AEZS is 'compelled'. Gilles is on the insideof both CZO and AEZS and knows the deals, etc., being worked on. Gilles wants CZO's pipeline on NASDAQ now for a reason. Given H.C. Wainwright's US$15 target and that it is a merger of equals the target valuation of this deal is arguably C$200 million or ~$1.25 per current CZO share with events.
The path,
the daisy chain of events that will define this merger...
AEZS's diagnostic test clinical trial results for children
Launch of powder formulations of CZO's two active ingredients(beta glucan, avenanthramide)
CZO's main client returns
AEZS's diagnostic continuing roll-out for adults
FDA approval for the test for children
Licensing deal for the diagnostic test for North America
Commissioning of 5X PGX scale-up
Commissioning of 10X scale-up to decision point for mass industrialization of PGX
PGX licensing deal
Immune booster plant
Phase I avenanthramide clinical trial results
Wound healing results
Wound healing partnership
Fibrosis clinical trial 'go'/'no go' decision and regulatory filing
Phase IIa avenanthramide clinical trial results
Avenanthramide pill partnership
AIM Biologicals 'go'/'no go' clinical trial decision