The hedge fund value the combined comany for about $80M, that is why they are willing to put $40M for 33% of ownership. youare right about the ripoff as it only values the current CLDN for $26M.
The key is that the valuation of the combined company in next couple of years. Normally the hedge fund want to push the share price much higher and there are a couple of pipelines where they may be able to build the hypes. so it is a good news from this point of view.
Well, in the summer anouncement, CLDN indicates that it only has about $20-25M cash left, and the merger agreement confirm that. CLDN contribute 22% of new company, the $39.5M cash investment get 33% of the new company.
I agree that today's anoument is a good news, and there is hope that the new company may advance and worth much more than it current valuation (which is about $120M).