share sale agreement signed for polynovo, page-2

The PolyNovo deal provides that Xceed Capital shareholders will receive 1.5 shares in Metabolic for each Xceed share they hold.

Xceed traded today at 6.3 cents per share.

If the residual value of Xceed excluding PolyNovo is 1.9 cents, which is arguably a high side estimate, then the value of their holding of Nolynovo is 4.4 cents per share. At the factor of 1.5, this dilutes to 2.9 cents per share for the acquired Metabolic shares, which is where MBP is trading right now right now.

Until late November, when the deal is approved by all relevant Boards of Directors, there will be a close correlation between Xceed shares and Metabolic shares.

In my opinion, both Xceed and Metabolic are currently undervalued by about half. Metabolic shares can't rise however, if an investor can get Metabolic shares through the Xceed backdoor as described above at Xceed's present share price.