Your welcome James!
In my opinion what management is planning to do will definitly create more value for us shareholders if they execute properly.
The subsidiaries will have their own shares as well. In my opinion it doesn’t matter if its 20 million or 40m.
I’ll explain. When they IPO a subsidairy it will have a certain market value determined by parties (bankers).
Say they IPO MANF for example, they determine a fair value for that subsidiary. Say a 100 million. Then they have 20 or 40 or another number of outstanding shares. The point is is that its worth 100 million no matter the share count.
Once that value of MANF is determined then the parent company (AMBS) can’t be worth 7 million.
So our value will be worth at least a 100 million (and don’t forget the other subsidiaries and our pipeline/diagnostic divisions) so we actually be worth even more.
Also what could happen is that we partner up MANF in the new subsidiary.
Say a big pharma wants a stake in MANF and they offer us upfront money to develop MANF further for exchange of a piece of the pie in the future.
A reason management wants to make 3 subsidiaries for MANF, ELTO and ESS is that it also makes it easier for a party to only invest in that one product/company that they are interested in.
So everything will be separate but owned by our parent company AMBS.
You can also buy more shares of that certain subsidiary later on when they IPO if you want.
Many things can happen but the beautiful thing of making separate subsidiaries is that you are going to see how extremely undervalued our (parent)company is right now.
So in my opinion management has a great plan.
Now we will have to wait and see what happens.
Also what comes to mind is that management are looking to partner certain MANF indications.
I believe it was mentioned in a press release about a year ago. It could be that they already have a potential partner just waiting for MANF to IPO.
So many possibilities. The risk/reward scenario is what makes this very interesting at this point for an investor.
I personally am very confident about AMBS’s future but time will tell if I’m right.
GL
In my opinion what management is planning to do will definitly create more value for us shareholders if they execute properly.
The subsidiaries will have their own shares as well. In my opinion it doesn’t matter if its 20 million or 40m.
I’ll explain. When they IPO a subsidairy it will have a certain market value determined by parties (bankers).
Say they IPO MANF for example, they determine a fair value for that subsidiary. Say a 100 million. Then they have 20 or 40 or another number of outstanding shares. The point is is that its worth 100 million no matter the share count.
Once that value of MANF is determined then the parent company (AMBS) can’t be worth 7 million.
So our value will be worth at least a 100 million (and don’t forget the other subsidiaries and our pipeline/diagnostic divisions) so we actually be worth even more.
Also what could happen is that we partner up MANF in the new subsidiary.
Say a big pharma wants a stake in MANF and they offer us upfront money to develop MANF further for exchange of a piece of the pie in the future.
A reason management wants to make 3 subsidiaries for MANF, ELTO and ESS is that it also makes it easier for a party to only invest in that one product/company that they are interested in.
So everything will be separate but owned by our parent company AMBS.
You can also buy more shares of that certain subsidiary later on when they IPO if you want.
Many things can happen but the beautiful thing of making separate subsidiaries is that you are going to see how extremely undervalued our (parent)company is right now.
So in my opinion management has a great plan.
Now we will have to wait and see what happens.
Also what comes to mind is that management are looking to partner certain MANF indications.
I believe it was mentioned in a press release about a year ago. It could be that they already have a potential partner just waiting for MANF to IPO.
So many possibilities. The risk/reward scenario is what makes this very interesting at this point for an investor.
I personally am very confident about AMBS’s future but time will tell if I’m right.
GL
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