Ceapro Inc V.CZO

Fairness opinions aren’t

[lscfa]

using volume weighted average stock prices for the 32 trading days before merger announcement gives CZO 63% of combined mkt cap but Bloom Burton says 50% is fair. It gives AEZS 37% of combined mkt cap but Raymond James says 50% is fair. What a crock.

 

$cdn	CZO	AEZS
Vwap nov1-dec 13	0.27	2.54
Shs o/s	78,293,177	4,855,876
Mkt cap 000’s	21,139	12,334
% Merged mc	63.2%	36.8%
Sept book equity	29,963	35,213
% merged b.e.	46.0%	54.0%

[prophetoffactz]

Gilles is in the best position to know the fairness of this deal given the partnering discussions around the diagnostic and PGX as well as his understanding of the pipelines.  H.C. Wainwright issued a US$15 price target for AEZS before much of the recent biotech surge. C$100-C$150 million market cap target could be fair for both companies making it a merger of equals.