The assumption Todos is selling their subsidiary and will not have anything to do with them isn't how I read it. Quite the opposite...
@42:13 "We don't intent to fund that phase 2/3 out of Todos, we're going to fund that base out of a spin-off of 3CL because we cannot take the dilution in Todos given you know, the current market cap, etc. so we have some corporate stuff that we have to get done, but that is the plan hopefully July, June/July we will start that Phase 2/3.
spin off
phrasal verb of spin
(of a parent company) turn a subsidiary into a new and separate company.
"the corporation announced plans to spin off its computer systems arm"
Spinoff
https://www.investopedia.com/terms/s/spinoff.asp
KEY TAKEAWAYS:
A spinoff is the creation of an independent company through the sale or distribution of new shares of an existing business or division of a parent company.
The spun-off companies are expected to be worth more as independent entities than as parts of a larger business.
When a corporation spins off a business unit that has its own management structure, it sets it up as an independent company under a renamed business entity.
"A parent company will spin off part of its business if it expects that it will be lucrative to do so. The spinoff will have a separate management structure and a new name, but it will retain the same assets, intellectual property, and human resources. The parent company will continue to provide financial and technological support in most cases. "
This is where valuations come into play. How much is Tollovir worth? How much is Tollovid worth? How much is Tollotest worth?
In what context? Hospitalizations? Outpatient? Virus preventation? Long Covid?
How do you put a value on that? Maybe first by starting to put a price tag on the "other stuff" that is already in the market or in trials.
So let's say all of that is valued between $100M or $10B and Todos is looking at raising, I don't know, 10% of valuation to pick any number. So that would be raising $10M or $1B and they give up 10% of the shares.
Now the fun part for investors. What is the valuation of 3CL Pharma. Remember Todos was investing in it long before the phase 2 data came out. It's worth a multiple now of what the deal was that closed 6 weeks ago. Maybe go ask the other companies that are just starting 3CL trials what they think is the value.
I don't know what Todos has in the works, but if they could raise enough dough in the spinout, that has a ripple effect that takes care of the notes in 2020.
What I do know is, sounds like investors don't have too much longer to see it all play out since next week is May and June/July right around the corner.
@42:13 "We don't intent to fund that phase 2/3 out of Todos, we're going to fund that base out of a spin-off of 3CL because we cannot take the dilution in Todos given you know, the current market cap, etc. so we have some corporate stuff that we have to get done, but that is the plan hopefully July, June/July we will start that Phase 2/3.
spin off
phrasal verb of spin
(of a parent company) turn a subsidiary into a new and separate company.
"the corporation announced plans to spin off its computer systems arm"
Spinoff
https://www.investopedia.com/terms/s/spinoff.asp
KEY TAKEAWAYS:
A spinoff is the creation of an independent company through the sale or distribution of new shares of an existing business or division of a parent company.
The spun-off companies are expected to be worth more as independent entities than as parts of a larger business.
When a corporation spins off a business unit that has its own management structure, it sets it up as an independent company under a renamed business entity.
"A parent company will spin off part of its business if it expects that it will be lucrative to do so. The spinoff will have a separate management structure and a new name, but it will retain the same assets, intellectual property, and human resources. The parent company will continue to provide financial and technological support in most cases. "
This is where valuations come into play. How much is Tollovir worth? How much is Tollovid worth? How much is Tollotest worth?
In what context? Hospitalizations? Outpatient? Virus preventation? Long Covid?
How do you put a value on that? Maybe first by starting to put a price tag on the "other stuff" that is already in the market or in trials.
So let's say all of that is valued between $100M or $10B and Todos is looking at raising, I don't know, 10% of valuation to pick any number. So that would be raising $10M or $1B and they give up 10% of the shares.
Now the fun part for investors. What is the valuation of 3CL Pharma. Remember Todos was investing in it long before the phase 2 data came out. It's worth a multiple now of what the deal was that closed 6 weeks ago. Maybe go ask the other companies that are just starting 3CL trials what they think is the value.
I don't know what Todos has in the works, but if they could raise enough dough in the spinout, that has a ripple effect that takes care of the notes in 2020.
What I do know is, sounds like investors don't have too much longer to see it all play out since next week is May and June/July right around the corner.
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