TELESTA THERAPEUTICS INC T.TST

Stock Valuation Models

[RetailRube]

Mr. McRae told me earlier this year that Bay Street analysts tell him the market places zero value on Animal Health.  All the value is for Urocidin.

I disagree with McRae.  My valuation model (4.3x revenue for Animal Health) suggests the market values ONLY Animal Health and assumes zero for VMC and Urocidin.  I assume the Market has been disappointed by management so many times, they now will only pay for values that are crystalized by a signed contract backed up by a certified cheque.  Until we sell or rescue the VMC, they say its worthless.  Until we get an upfront payment from a Urocidin partner, they say that too is worthless.  (I disagree with the market, but the institutions have more money than I do, so they win.)

Either McRae is right or I am right.  One of us in wrong.  But it will make a big difference to where the stock will trade after the announcement of the sale of Animal Health.  If I'm correct, the stock price will rise TO the amount of the dividend specified in the Settlement Agreement Contract dated Sept 11, 2013.  (i.e., selling price for AH - $75m - 10%).  Right now, I'm forecasting 48 cents per share.  If McRae is correct, the price will rise BY the amount of the dividend, so it will become 37 cents + 48 cents = 85 cents per share.

Caution:  McRae was frequently wrong.  I recommend you bet on my model.

[supserstar]

Doing my dd I am finding this a fascinating story...if they can get say 80 million for AH, and pay off the debt of $40 million (not paying back the govt yet, not sure if they even have to), that leaves them 40 million plus the existing 20 so $60 million in cash on the balance sheet. This would put them in a very strong negotiating position when they being a search process for the best pharma

[HighteawithIntrepid]

SS Once the share price stays above .34 the CEO is in the money on 3M shares. Above .40 I and a lot of others are in the money on our warrants we got with our .29 shares that DimSum whines about, plus the employee plans, plus the shares attached to the loans so you may need to rework your numbers. A better solution wish is the Feds take the VMV for their loans when we sell AH. Then we own only the

[supserstar]

what is the VMV? I don't think too many people will be exercising their warrants unless the stock is well over .50, probably over .60. Also, the ceo would be nuts if he sold a single share under $1. i used 150 million, so call it 160 million shares with all the dilution and a $1 stock. sounds good to me. still seems good at .36. why are you asking to buy people's warrants? maybe if the

[HighteawithIntrepid]

SS The VMV was a typo for VMC. If a div is in the works I would elect to collect. Long term if we get a US thumbs up in early 2014 then the price should trade above .40. If the GW guys can sell shares with a .15 lift I can elect to do that as well. Why? Because I think BNC is worth more than .40 why else, and they don't trade and probably won't. Besides asking my broker how else are you

[Nohandledzep]

Rube...You only have to look at the most recent 29 cent finacing with warrant offering at 40 cents to know that the market in general values One Health, the VMC and Urocidin as net- worthless. All of the value in the company, as defined by the market, is in Animal Health and its consistent, if not recurring revenue. Granted, it would take an extraordinary amount of effort to establish a