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Astex Pharmaceuticals, AŞ Message Board

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  • billyteex1 billyteex1 May 1, 2007 11:44 AM Flag

    what will the spinoff due

    The spinout should give investors a percentage of new company. This is different than a spinoff, most likely this new company will work under SUPG roof. Orathecin gets a new life and my best guess is that the current shareholders will share 50-50 with this new venture. The capital will come from outside investors and SUPG needs to spell out such things as if this will be listed company. I would think it would take 25M to start up this venture, so as investors we are putting up our half with these assets of SUPG. If the price per share is 10.00, there would be 2.5m shares on the equity side and 2.5m shares divide by 57M outstanding shares. As SUPG investors we would get a little over 4% of our current position. So if you own 10k shares of supg you would get 400 shares of the new company at about 10.00 a share price. This would equate out to $4,000.00 valuation which is tax free until you sell it. Your basis in this would be zero.

    I maybe way off here but it was a attempt to show, how it might work.

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    • Thanks for the info - will this also drive SUPG price down or up?

      • 1 Reply to imgadgets
      • It's a free benefit to current shareholders, so price would increase. On my example it would add about .40 to valuation. Supg may feel they are bring to the table more than 25M in asset valuation, so my percentages maybe off one way or the other. It needs to be explained but street will like hearing some news on a asset that is sitting dormant right now adding no value. I have posted some other thoughts what maybe in store for this new venture and that maybe out licensing the new delivery technology. I believe we will have a better understanding maybe Wednesday night or in the next few months.