.jpg)
discount those shares to the IPO price...
ya man, that's what's happens, all over the world, all the time. it's theoretically a "series C", but that's all case specific, I haven't done the research on how many raises they've done before. the amount is always company specific, but $18M is on the low end of average, a very common sum not just generally but in biotech. and like I said, it portends an IPO in the ballpark of $100M valuation. Part of this $18M is coming our way, up front to complete the acquisition, that much is clear, the questions are how much, how quickly, and if not enough quick enough, what are we going to do to push off the leak in 2019.
If we think this IPO is happening this spring, we need to pay off shares equal to the length of time. Here's the example game plan, I'm pulling #'s out of my arse based on what I'm seeing. they complete the fund-raise Dec. 15. They put $6M in our hands. We hand of the $6M to creditors all at once or over time so they piss off through April ($1.5M a month). At that point, we owe $12M. IPO completes late April. We, AMBS now own 60% of 30% of a $120M valuation NYSE listed company that may fade, but has a shot on goal at a $1B asset with clinical trials that are ready to rip sometime in 2019 and conlude in 2020/21 at a partnering stage, and we take $15M in cash from the sale to complete the acquisition, and use that to continue to pay off parties and delay dilution while we raise money at a more reasonable valuation for our own parent company and spin up operations in the other subs.
This other company CEO may have created some duds, but he is experienced in getting these IPOs done, ain't his first rodeo, and it could not be a better moment to do it. If you've got some money before you go on to start setting your IPO price/valuation, you will get at least the cash value included in the valuation, and more due to what you want to do with it in the scheme of the market you're entering.
an IPO is an exit strategy for investors, and for biotech a catalyst for innovation.
ya man, that's what's happens, all over the world, all the time. it's theoretically a "series C", but that's all case specific, I haven't done the research on how many raises they've done before. the amount is always company specific, but $18M is on the low end of average, a very common sum not just generally but in biotech. and like I said, it portends an IPO in the ballpark of $100M valuation. Part of this $18M is coming our way, up front to complete the acquisition, that much is clear, the questions are how much, how quickly, and if not enough quick enough, what are we going to do to push off the leak in 2019.
If we think this IPO is happening this spring, we need to pay off shares equal to the length of time. Here's the example game plan, I'm pulling #'s out of my arse based on what I'm seeing. they complete the fund-raise Dec. 15. They put $6M in our hands. We hand of the $6M to creditors all at once or over time so they piss off through April ($1.5M a month). At that point, we owe $12M. IPO completes late April. We, AMBS now own 60% of 30% of a $120M valuation NYSE listed company that may fade, but has a shot on goal at a $1B asset with clinical trials that are ready to rip sometime in 2019 and conlude in 2020/21 at a partnering stage, and we take $15M in cash from the sale to complete the acquisition, and use that to continue to pay off parties and delay dilution while we raise money at a more reasonable valuation for our own parent company and spin up operations in the other subs.
This other company CEO may have created some duds, but he is experienced in getting these IPOs done, ain't his first rodeo, and it could not be a better moment to do it. If you've got some money before you go on to start setting your IPO price/valuation, you will get at least the cash value included in the valuation, and more due to what you want to do with it in the scheme of the market you're entering.
an IPO is an exit strategy for investors, and for biotech a catalyst for innovation.
5
