valuations and sp

As per the announcement of today it is stated

"Transactions which take advantage of the significant appetite of private equity groups who clearly recognise the $1.77 of cash and cash equivalents inherent in Peptech’s stock price;"

Is the valuation of $1.77 sp just for the cash on hand. Then the value with all the patents they hold plus drugs on trial menas that the SP is grossly undervalued at the current price of $1.875