.My thanks go to gingerclam and saus for realising that my...

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My thanks go to gingerclam and saus for realising that my suggestion to split our company has some benefits.
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Another line of strategic thinking …. If we use some of the rivers of cash to go for NNZ2591 phase 2 on more indications and/or phase 3 then we will not be as desirable for investment by large local investment funds because they will perceive Neuren to be high risk (again) and the SP will be lower than it otherwise would be and then big pharma (who know better) might take a bight out of us.
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Now big pharma won’t get a majority shareholding because of the inner-sanctum (Neuren’s management) plus loyal shareholders like you and me (well me anyway) won’t sell. BUT they will get a large enough shareholding to get a seat on the board and maybe use the creep provisions to get more over time but certainly they are now inside the tent and will work to advance big pharma’s interests, not ours.
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So if we do as I suggest and split Neuren then big pharma would likely go for the cash and leave Son-of Neuren (SON) for later …. I say this because they already have done just that … they left us alone when they saw us as being high risk, waiting for Phase 3 results, which is what SON would be for the next 4 or 5 years. Having their BOD rep in NEU but not SON we (the good guys) retain a bigger degree of control for longer and maximise value.
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As a follow-up to one of the negative comments received the other day, I have shares in an Australian minerals explorer that about a year ago did just this sort of thing. Red Metal (ASX: RDM) split off a (then) marginal discovery at a place in Queensland called Maronan into a new company called Maronan Metals Limited…. (ASX: MMA) so that it could be developed separately and preserve the RDM business in much the same manner as I suggested here for us. I discussed this a little while ago with a member of the RDM board I know and he said informally that to do the admin cost around $500k (that’s if get it done out of Perth using a plain vanilla package) but maybe $650k all up out of Sydney. It would take around 6 to 8 months to arrange. The question was very relevant and took me a little off-guard, but this is still good to know.
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