Finally, ACU has cleaned the slate & we can start again.
IMO we have acquired Biolife for a steal as the potential of their technology & it's application, coupled with the new management team are quite exciting.
The amendment in capital structure is also a great idea as it will enable the company to effectively manage it's share register without billions of shares on issue.
The way I see it, we have the following post-consolidation: - 11,500,000 shares for existing shareholders (current 2.3B divided by 200 for consolidation of 200:1) - 20,000,000 shares for the 1st trance of Biolife consideration - 20,000,000 performance shares for the achievement of milestones related to the FDA & Clinical II trials. - 25,000,000 shares raised in the capital raising by Pattersons.
Post all these events, we will have 76,500,000 shares on the register at 20c. So we will have a market cap of 15.3m, of which 5m is cash (from the equity raising).
All in all, we are currently paying (@ 0.001c) an EV of $10.3m for a company about to enter in to Phase II clinical trials for a drug with an the potential to be more effective than a comparible drug on the market achieving sales of $5BN !!!
IMO pre-consolidation (pre 15 Feb, when shares are suspended), we could easily see this company achieve a 5-bagger as then the company will have an EV of $51.5m which looks fair for a company in this position, with this potential.
51.5m EV calculated as follows: - 11,500,000 + 20,000,000 + 20,000,000 x $1 (which is 5 x 20c - or 0.005 pre-consolidation) = $51.5m - 25,000,000 @ 0.20c (placement) = $5m less $5m cash from placement EV (enterprise value) post consolidation, assuming 5-bagger, is $51.5m
I'm expecting an interesting 2 months until 15-Feb
All clearly IMO
DYOR please.
ACU Price at posting:
0.1¢ Sentiment: LT Buy Disclosure: Held
