re: Ann: Share transactions with major shareh... An assessment...

re: Ann: Share transactions with major shareh... An assessment of this deal comes down to " do you want to be on the Brevagen journey or do you want a part Brevagen part Immunaid journey"

In my view the equity market (ie us) will not place any value on Immunaid where it sits now- there is no visibility through to it plus Merv is involved which turns a lot of instos off). Sure , it might be worth a lot in 5 years but let's look at some numbers.

It recently raised cash at $1.00 so if its worth $5 in 3 years its been a ball tearer. At $5 GTG's 4.5m shares would have been worth $22.50m. Now under this deal it keeps an option on half so the downside ( at a very lofty $5 ) is $11.25m for GTG plus add in the $0.5m option fee and you get $11.75m.

Now if we assume Immunaid grows from $1 to $5 over 3 years we must assume some good times for Brevagen so its apples vs apples. But lets say GTG shares only grow 3 * to 18c. On this trade GTG has effectively made (18c -8c) * 76m shares = $ 7.6m. If I assume 5* to be consistent with Immunaid's 5 * that's 30c or (30c-8c)*76m shares = $16.7m.

So, in my mind the deal itself is fair in future expectation terms - you are splitting hairs and going around and around in circles essentially debating which of Brevagen or Immunaid will be the best performer going forward . So, whether you like the deal or not SIMPLY depends on which asset you think will perform best over the say 3 year period , Brevagen or Immunaid. If you prefer Immunaid then sell your GTG shares and give Merv a call and invest there. If you think Brevagen then hold on in GTG.
And that still leaves the non-financial benefits of this deal for GTG which the above places no value on.. and that is " Merv is down to 6.2%" and cannot now vote down sensible proposals that the Board puts to shareholders. This will attract new buyers to the shares, IMHO