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Ceapro Inc V.CZO

Ceapro Inc. is a Canada-based biotechnology company. The Company is involved in the development of extraction technology and the application of this technology to the production of extracts and active ingredients from oats and other renewable plant resources. Its primary business activities relate to the development and commercialization of natural products for personal care, cosmetic, human, and animal health industries using technology, natural, renewable resources, and developing products, technologies, and delivery systems. The Company's products include a commercial line of natural active ingredients, including beta glucan, avenanthramides (colloidal oat extract), oat powder, oat oil, oat peptides, and lupin peptides, a commercial line of natural anti-aging skincare products, utilizing active ingredients, including beta glucan and avenanthramides and veterinary therapeutic products, including an oat shampoo, an ear cleanser, and a dermal complex/conditioner.


TSXV:CZO - Post by User

Comment by prophetoffactzon Mar 12, 2024 5:11pm
71 Views
Post# 35929249

RE:AEZS and CZO shareholders approve... Ronnie is "thrilled"

RE:AEZS and CZO shareholders approve... Ronnie is "thrilled"
"Stronger Financial Position and Flexibility. The Resulting Issuer will have increased financial flexibility with enhanced free cash flow and a strengthened balance sheet, with approximately $57 million in unrestricted cash as at September 30, 2023 on a pro forma basis." Feb. 15 news release

People will have to make their own assumption concerning how much of the $57 million unrestricted cash was burned since September 30, 2023 and how much could be replaced by potential upfront cash from a diagnostic and PGX deal should everything go smoothly but at $57 million and given this is a merger of equals that is $28.5 million cash or about $.356 cash per current CZO share. There could also be upfront payments from wound healing and avenanthramide pill clinical trial deals as well as from potential AEZS pipeline deals upon human data. There are also potential milestone payments from deals. It would be interesting to know the perspective on the inside concerning expected cash needs and when. As of now CZO's near-term revenue generating opportunities appear fully financed with th closing of this deal but there is a lot of opportunity that can open up with continued progress for internal development that may justify a financing if the stock price move up to a more efficient price.


prophetoffactz wrote:

While other conditions must be met today could be the big day. It looks to me like the merger will close and with that CZO's near-term path is fully financed without delay. It's off to NASDAQ! 

Given that the merger was expected to close in the first quarter before the delay to the Special Meeting my guess is that the merger could close around first half of April. Now all of the goodies that have "thrilled" Ronnie Miller can start being released. Great timing! The event chain can happen on NASDAQ and the TSX. SO long TSX-V! It takes a lot to thrill a man like Ronnie Miller who's from the world's largest biotech company. They wanted CZO's story on NASDAQ for a reason. AEZS has already had analyst support(H.C. Wainwright) with a US$15 target before merger.

The path,

the daisy chain of events that will define this merger...


AEZS's diagnostic test pivotal clinical trial results for children. It was expected to by fully enrolled by the end of 2023. Does the data support a standalone test as opposed to current tests requiring two tests? That could be huge.

Launch of powder formulations of CZO's two active ingredients(beta glucan, avenanthramide). Sample has been shipped to Symrise of oat beta glucan.

CZO's main client has returned with a first shipment.

AEZS's diagnostic continues roll-out for adults in Europe, etc., and with a North American licensing deal can be immediately relaunched in the US market as it is already approved for US adults.
.
FDA and European approval for the diagnostic test for children

Licensing deal for the diagnostic test for North America and potential milestone for pediatric approval from other agreements. A North American deal and pediatric approval will allow a full-scale marketing campaign of the test for the first time in North America. The pediatric market is a key market for growth hormone deficiency for obvious reasons and marketing to this group should create increased awareness in the adult market where growth hormone deficiency can affect quality of life(eg. body composition, muscle tone) and mortality(eg. cardiovascular parameters). AEZS has also been pursuing other diagnostic deals as for Asia and South America, etc.

Commissioning of 5X PGX scale-up expected this month supporting samples for potential partners.

Commissioning of 10X scale-up to decision with industry leader Natex to the point of decision for mass industrialization of PGX expected in the next six months.
"Protocol designed for a head-to-head study in animals for testing immune properties of PGX-YBG against a commercial formulation." November This data could support human cell-line data suggesting a multi-fold increase in potency.
PGX-yeast beta glucan:  "...this product could be offered as an immune booster before year end 2024."

Full-scale immune booster plant decision? The previous proposed 40 million dose plant had a $100 million net present value.

PGX-CoQ10 licensing deal supported by the capital and capacities of AEZS.

Phase I avenanthramide clinical trial results. The first two cohorts had no significant adverse events. The 120mg cohort was expected to be cleared last week after prior dosing by the Data Safety Monitoring Board.

Wound healing results with the Angiogenesis Foundation in ongoing study.

Wound healing partnership is expected to be supported with the results from the ongoing studies. This data should also support/strengthen the claims of beta glucan and avenanthramide for cosmeceuticals. 

Fibrosis clinical trial 'go'/'no go' decision and regulatory filing. A 6 month toxicology study was needed before a potential clinical trial decision.
"Enriched Oat Flourwith High Concentration of Avenanthramides: The first batch has been successfully produced. Samples have been sent to one major customer. The Company is assessing the potential of this product for preventive antimicrobial properties when used to produce oat based nutritional products." release
"Space at the University is being retained for other upcoming opportunities under discussion." CZO November release

Phase IIa avenanthramide clinical trial results

"Ceapro’s team has successfully developed a unique, standardized formulation for a healthy confection which includes a high concentration of OBG with daily dosage according to approved claims in 10 developed countries...Ceapro’s team anticipates the official commercial launch of its approved natural health product in H2, 2024...

Avenanthramide pill partnership supported by the Phase I/IIa clinical trial that is expected to provide safety/tolerability and preliminary efficacy data.

AIM Biologicals 'go'/'no go' clinical trial decision as well as other potential assets. Have we substantially cleared preclinical testing and what does the defined clinical trial path look like - key questions for the market.

Potential analyst coverage. AEZS is already covered by H.C. Wainwright with a C$100 million market cap target price. Given this is a merger of equals this may speak to the value of the combined company.

Today's news release: Ronnie is still "thrilled"!


"Transaction is expected to close in the second quarter of 2024."

"We thank our shareholders for their backing of this transaction," said Carolyn Egbert, Chair of Aeterna. “This is an excellent outcome that supports the creation of what we believe will be a long-term sustainable business, optimally positioned to deliver value to the biopharma sector, and to Aeterna and Ceapro shareholders."

"We are thrilled by the support for this transaction displayed by our valued securityholders at today’s meeting,” echoed Ronnie Miller, Chairman of Ceapro. “This is an integral step on the path to completing the Transaction with Aeterna.”



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