Posted On: 09/13/2014 4:58:23 AM
Post# of 30067
Spin-offs and Carve-outs
http://www.forbes.com/sites/joecornell/2014/0...pin-cycle/
http://www.investopedia.com/terms/c/carveout.asp
Just thinking out loud, but what if a diagnostic spin-off or "carve-out" came after a lympro partnership with a nice upfront payment by BP and AMBS retaining a number of shares in the new diagnostics company and existing shareholders were granted the remaining shares - say a 50/50 split between AMBS and it's shareholders. The nice thing is the new diagnostics company could pay out most of it profits in dividends collected by us and AMBS therapeutics. That way Lympro profits could eventually fund multiple MANF phase 1 trials which really aren't that expensive and GC "unlocks shareholder value," as promised and AMBS keeps the upfront partnership payment so they'll have plenty of cash with more to come from future MANF partnerships.
For a new Lympro diagnostics company with say 400 million shares outstanding and eventually $100 million in excess cash to be paid out as dividends - a stock like that might have a 3-5% dividend yield meaning $5-$8+ per share. AMBS would collect $50 million of that payout.
In the recent conference call I believe GC made it clear that he's willing to sell Lympro for the right price which probably means for more than the sales price of Amyvid ($800 million) but I'd be just as happy with an alternative carve-out scenario that includes a nice dividend payment. Cheers, all.
http://www.forbes.com/sites/joecornell/2014/0...pin-cycle/
http://www.investopedia.com/terms/c/carveout.asp
Just thinking out loud, but what if a diagnostic spin-off or "carve-out" came after a lympro partnership with a nice upfront payment by BP and AMBS retaining a number of shares in the new diagnostics company and existing shareholders were granted the remaining shares - say a 50/50 split between AMBS and it's shareholders. The nice thing is the new diagnostics company could pay out most of it profits in dividends collected by us and AMBS therapeutics. That way Lympro profits could eventually fund multiple MANF phase 1 trials which really aren't that expensive and GC "unlocks shareholder value," as promised and AMBS keeps the upfront partnership payment so they'll have plenty of cash with more to come from future MANF partnerships.
For a new Lympro diagnostics company with say 400 million shares outstanding and eventually $100 million in excess cash to be paid out as dividends - a stock like that might have a 3-5% dividend yield meaning $5-$8+ per share. AMBS would collect $50 million of that payout.
In the recent conference call I believe GC made it clear that he's willing to sell Lympro for the right price which probably means for more than the sales price of Amyvid ($800 million) but I'd be just as happy with an alternative carve-out scenario that includes a nice dividend payment. Cheers, all.
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