RE:RE:10 days until the AGMPicker1 wrote: And yet the price keeps going down
Interesting moment.
Are we watching a market failure to recognize value?
Market capitalization is about ~$23.5 million with perhaps C$35 million cash. It would seem cheap trading at 67% cash.
H.C. Wainwright had a C~$100 million market capitalization target for AEZS before the merger likely significantly driven by the diagnostic and the trial results for the diagnostic could be released in the next 2 weeks. As a merger of equals that valuation could suggests a C~$200 million market cap target or $50 per share for the combined company.
CZO took the step to list on NASDAQ suggesting confidence. Ronnie Miller has expressed he's "thrilled" repeatedly with the merger and says that with the merger completed the company is now optimized with transformational products. Gilles says he's excited.
Diagnostic results could be released in about two weeks if the timeline to the release of the adult results holds for children. AEZS expected a new deal in a news release last July based on its outreach. As a member of AEZS's Board of Directors Gilles would be in a position to know how talks were going on a new deal and wanted the merger. The previous deal with Strongbridge has a C~$40 million upfront payment adjusted for inflation plus milestone payments and potential royalties as well as payments for a pediatric trial.
Commissioning of the decision point for mass industrialization of PGX(100L) is expected this quarter. PGX-YBG is 5X more potent. PGX-YBG/CoQ10 blew away the industry gold standard in the University of Alberta study. PGX-YBG/fibrosis data has been sent to a leading scientific journal. They could have a wound healing franchise. Gilles called the prior results a "home run". NMOSD could be a breakthrough.
They don't have to hit on everything to justify the current market cap. There are a number of shots on goal.
Here's what was said last AGM according to my AGM notes:
CZO has shown 2X CoQ10 bioavailability of cyclodextrine and 4X bioavailability of Triolien. Discussions concerning out-licensing a PGX complex are underway right now with serious potential partners in the neutraceutical industry. Partners are pretty impressed and understand why CZO wants to make bioavailability the unique selling point. Sigrun Watson is holding discussions with very, very serious partners. CoQ10 is a $4 billion market.