The most recent blog by Gerald on AMBS Diagnostics
Post# of 30066
Posted On: 01/31/2015 2:33:36 PM
The most recent blog by Gerald on AMBS Diagnostics was excellent.
I thought it is important to understand certain differences in share ownership here.
If AMBSDX is spun off, a AMBS shareholder will enjoy the benefit of AMBSDX either
1. only through ownership of AMBSDX shares (i.e. complete spin-off of AMBSDX and AMBS shareholders do not benefit from AMBSDX subsequently as AMBS no longer owns AMBSDX), or
2. only through ownership of AMBS shares (i.e. entire AMBSDX is owned by AMBS as AMBS asset and there is no share dividend of AMBSDX shares to AMBS shareholders), or
3. partially through ownership of AMBS shares (i.e. AMBS owns a portion of AMBSDX shares as equity) and partially through ownership of AMBSDX shares (i.e. issued out as stock dividend to AMBS shareholders as per Gerald's words)
Theoretically, if a spin-off of AMBSDX results in, say, $1 valuation per AMBSDX share, the total valuation increase in combined AMBS+AMBSDX shares will be $1 too, not $2 as some may have thought by virtue of owning both AMBS and AMBSDX (as dividend) shares.
Going by Gerald's desire to uplist AMBS with no or minimum RS, it is likely that scenario (2) or (3) will happen as the balance sheet and hence valuation of AMBS will be greatly boosted if AMBSDX is successfully spun off. If what Gerald meant about the stock dividend of AMBSDX is also true, then scenario (3) is the likely outcome.
It seems more and more unlikely that AMBS will uplist through reverse takeover or merger but through increased valuation of AMBS which is preferred IMHO.
http://investorshangout.com/post/view?id=2004677
Whether scenario (2) or (3), I still believe that the AMBSDX is likely a JV with a BP or a large diagnostics pharma, with synergy of an injection of cash and a strong management team experienced in diagnostics business to run AMBSDX.
A JV in this regard will surely give AMBSDX valuation a tremendous uplift. The possibility is further fueled by Gerald's hint that more diagnostic assets will be added to AMBSDX (contributed from the JV partner as part of JV deal?).
Quote:
In the event of a ‘spin-out,’ Amarantus plans to maintain an equity ownership, in order to put a significant, growing equity asset on our balance sheet. We would also enable current shareholders to participate directly in our soon-to-be revenue generating diagnostics business via a stock dividend, while also maintaining an equity position in our therapeutics and discovery business units.
I thought it is important to understand certain differences in share ownership here.
If AMBSDX is spun off, a AMBS shareholder will enjoy the benefit of AMBSDX either
1. only through ownership of AMBSDX shares (i.e. complete spin-off of AMBSDX and AMBS shareholders do not benefit from AMBSDX subsequently as AMBS no longer owns AMBSDX), or
2. only through ownership of AMBS shares (i.e. entire AMBSDX is owned by AMBS as AMBS asset and there is no share dividend of AMBSDX shares to AMBS shareholders), or
3. partially through ownership of AMBS shares (i.e. AMBS owns a portion of AMBSDX shares as equity) and partially through ownership of AMBSDX shares (i.e. issued out as stock dividend to AMBS shareholders as per Gerald's words)
Theoretically, if a spin-off of AMBSDX results in, say, $1 valuation per AMBSDX share, the total valuation increase in combined AMBS+AMBSDX shares will be $1 too, not $2 as some may have thought by virtue of owning both AMBS and AMBSDX (as dividend) shares.
Going by Gerald's desire to uplist AMBS with no or minimum RS, it is likely that scenario (2) or (3) will happen as the balance sheet and hence valuation of AMBS will be greatly boosted if AMBSDX is successfully spun off. If what Gerald meant about the stock dividend of AMBSDX is also true, then scenario (3) is the likely outcome.
It seems more and more unlikely that AMBS will uplist through reverse takeover or merger but through increased valuation of AMBS which is preferred IMHO.
http://investorshangout.com/post/view?id=2004677
Whether scenario (2) or (3), I still believe that the AMBSDX is likely a JV with a BP or a large diagnostics pharma, with synergy of an injection of cash and a strong management team experienced in diagnostics business to run AMBSDX.
A JV in this regard will surely give AMBSDX valuation a tremendous uplift. The possibility is further fueled by Gerald's hint that more diagnostic assets will be added to AMBSDX (contributed from the JV partner as part of JV deal?).
Quote:
In addition, we will add our NuroPro technology for Parkinson’s and other diagnostic assets to the Amarantus Diagnostics portfolio as well
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