RE:RE:CZO is up 57.6% this week, the market is up 1%jrsloan60 wrote: Ceapro is down only 66% year to date Even with the 57% increase. Question, do you think they push the shares down so that they could get a merger?
CZO shareholders get half of the shares of the new company so you would share 1/2 of what they were pushed down if you believed that. Other than that you will have to put your own valuation on the events expected this year from AEZS and CZO.
One problem for CZO was that CZO's main client(J&J now Kenvue), for the base business, from which ~50% of CZO's revenue has been generated, disappeared from CZO's revenue and the market couldn't figure out why it was taking so long to return. It was reorganizing after being spun out of J&J, etc.
As announced on Friday they have finally placed an order in Q1, 2024:
"From a business perspective, while 2023 was a challenging year due to a reorganization from one major customer in USA, we are pleased to announce that this customer has resumed ordering from Ceapro during Q1, 2024 with a +20metric ton order of avenanthramides."
It's back as Gilles repeatedly expected but 20 metric ton of avenanthramide is only about 11% of avenanthramide by volume in 2021. Avenanthramide by volume for 2021 is in the following presentation at 9:24:
Ceapro (TSX.V: CZO) Interview with CEO Gilles Gagnon (youtube.com) There may have been some price increases since by CZO. Avenanthramide is CZO's highest margin product. Is there reduced demand from Kenvue still?