Ceapro Inc V.CZO

Unpack

[boazklinghorn]

Seems there is a lot to digest here. Obviously Gilles would do an incestous deal with a known entity because he hasnt the ability to go and sell a deal to anyone else. Every first year finance student knows you dont use your stock as currency when you are at an all time low. The main reason for the deal seems to be to get the money and the nasdaq listing if it closes they should absolutley wrap up AZES or whatever the symbol is and proceed with Ceapro agenda. IF you value aezc or whatever as 52 million cash and the nasdaq listing say another 8M (Lets be generous) Ceapro is trading half of itself currently 18M market cap so 9M for half of 60M or 30M. to me that seems a pretty good deal. Of course both companies are money losers but has been mentioned Gilles and Ronnie will do great.

[Tencents]

Seems ceapro had run out of options and did a deal with Sp at very low level nevertheless the issue of not getting the pipeline moving remains -and will eat up cash fast Hard too see any synergies - no technology match different markets etc 

[boazklinghorn]

Ya no obvious synergy at all. The maket values AZCS at less than half its cash value so that tells you everything you need to know about their prospects. 

[PBaelishh]

Lipstick on a pig. Gagnon just bought more time to burn cash and overpay himself in the meantime.  This simply prolongs the road to nowhere.  Haven't calculated the cash-burn rate yet but at first blush I think this buys 2 years yet any new products are at 4 years out? There is indeed money to be made in the coming gyrations over the short-term but this did nothing to unleash long

[boazklinghorn]

Ya the only way it makes sense is to close the deal and immediatley cease all activity on ABCZ and run Ceapro with the cash and the new listing. 

[boazklinghorn]

THe market has spoken clearly about the quailty of both of these management teams. ACSE trades at a huge dicsount to cash and CZO is at the same price it was ten years ago. I can see why Ronnie is so excited to get both teams in one entity.  And what is the interestting common denominator of these two hugely underperforming companies . Hmm ?? 

[PBaelishh]

I hear you. Charlie Munger used to say if you mix terds with raisins, you still have terds.  I don't need to break out my ouija board to call Charlie and get his perspective on mixing terds with terds! Oink, Oink.

[boazklinghorn]

Of course we will never know because niether Gilles nor Ronnie wiil deign to talk to their 'valued" shareholders but I think it is very safe to assume that when Gilles says they were exploring oportunities and spending big cash on the corporate side, while revenue was crashing and the stock price was tanking. I would bet they did not explore a single other option than uniting Gilles

[prophetoffactz]

"I would bet they did not explore a single other option than uniting Gilles..." Gilles knows AEZS. Invest in what you know. The relicensing of AEZS's growth hormone deficiency test could be very interesting given what Novo Nordisk invested and now approval for its most important market(children) may be near. Novo Nordisk invested more than the combined value of the merged companies

[Ciao]

We heard that they were looking at M&A but they should have disclosed the special committee and possibly the members within (brokerage firms). Seems like they had blinders on as Gilles steered them towards AEZS. As for the share exchange ratio, using the current lows of CZO and the 33% rebound in price of AEZS as fair is utter B.S. As we noted the opportunity to at least get Gilles off the