Ceapro Inc V.CZO

What's it take to 'thrill' a guy from Roche? It takes CZO!

[prophetoffactz]

What's it take to 'thrill' a guy like Ronnie Miller from Roche? It takes Gilles,  CZO and this merger!

Bing:  "As of February 2024, Roche Holding AG has a market capitalization of $210.94 billion1. This places Roche as the 52nd most valuable company in the world by market cap according to available data. "

Does this suggest why Ronnie is "thrilled'?

H.C. Wainwright cut AEZS's target price from US$28 to US$15 on November 13, 2023 at the bottom of the biotech market. The S&P Biotech ETF is up 40.8% since.  

As a merger of equals at US$15 that could translate into a target price for CZO of ~C$1.25 per share. H.C. Wainwright's US$28 target price translates to C$2.32 per CZO share or a market cap of C$182 million for CZO.

Could CZO alone have a target price worth C$1.25 to C$2.32 one year out implied in the merger and that justifies this merger of equals?

CZO's main client is back, new products are near(powders, chewy), PGX could hit commercial-scale before the end of the year with an immune booster. The 100L scale up is also the decision point for mass industrialization. The previous immune booster plant was said to have a $100 million net present value. CZO has had talks with serious potential partners concerning the larger CoQ10 market. They are said to understand the importance of bioavailability. If the immune booster had a $100 million net present value what is the value of a potential CoQ10 partnership be in the larger CoQ10 market? The avenanthramide clinical trial will have a safety/tolerability/efficacy read out and has cleared the first safety hurdles in humans. The 120 mg level could be meaningfully therapeutic given other avenanthramide data and has been administered. The avenanthramide malted technology is at commercial-scale and samples have been sent to a major client as the pill trial provides supportive data. There's the wound healing and fibrosis opportunity and broader PGX potential(Trojan Horse, whey powder, etc.). The merger with AEZS could allow CZO to raise money without warrants effectively at C$1.25-$2.32 per share allowing capital and resources to be directed into CZO's near-term opportunities and support stronger PGX partnerships as PGX hits strategic scale-up milestones; including with Natex in the coming months.

Can you see why Ronnie Miller, who is arguably the most important biotech executive in Canada in the last 20 years, is "thrilled" by the merger and how it could be used to support CZO's plans for significant growth. The merger also puts CZO on NASDAQ with potential analyst support as the daisy chain of news hits the tape. Given the world class perch Ronnie Miller worked at at Roche it likely takes a lot to get him "thrilled" and he is with Gilles in the catbird seat at both companies by his side.


"February 2, 2024 - H.C. Wainwright & Co., LLC, announced its #1 Ranking by transaction volume during 2023, having executed 147 transactions – more than double our nearest competitor, according to PlacementTracker's Market League Tables. H.C. Wainwright has been ranked #1 in transaction volume since 2014, maintaining the Firm’s top position for 10 consecutive years. In addition to being the #1 Investment Bank for Confidentially Marketed Public Offerings, Registered Direct and Private Placement transactions, H.C. Wainwright executed 289 transactions since the start of 2023 totaling approximately $12.1 Billion in transaction value. The H.C. Wainwright team has been the #1 ranked underwriter/placement agent by deal volume cumulatively since 1998."

HC Wainwright Cuts Aeterna Zentaris' Price Target to $15 From $28, Maintains Buy Rating

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