Zenith Royalties
posted on
Jun 22, 2023 02:07PM
I posted what is below on the Zenith site.
"I am not saying anything pro or con to what you have said rather just putting some point ahead for thought. Right now, the Zenith asset known as the Royalty Preferred Shares is almost worthless. its value is dependant on RVX achieving commercial sales. If Zenith sits by and lets RVX go down, that asset becomes zero. If Zenith finds a way to aid RVX on its way to commercialization, it is actually assisting its own gain. As I have often stated, the shareholders are different so it has to be done in a fair way to the Zenith shareholders. We have not yet been given any details as to how that would be implemented. I believe DM hinted that selling half of the royalties could finance RVX's portion of the BoM2 costs. That would still need to be proven that someone would pay that much but we will see. One scenario that I could see if there is that interest is that Zenith sells a portion of the royalties and receives compensation for them as it is its asset. Zenith doesn't immediately need the cash as its trials are being paid for by others. Zenith could lend the cash to RVX that is need for BoM2 at rates that compensate Zenith for any risk and then it is fair to the Zenith shareholders. As an added benefit, Zenith might realize value creation for the remaining royalties.
The main thing here is the royalties are almost worthless right now and this might be a way to generate value in them. They do not get worth value by Zenith success, only RVX success."