What if...?
posted on
Dec 12, 2015 09:41AM
Zenith's BET Inhibitor ZEN-3694 is Currently Being Evaluated in Multiple Oncology Clinical Trials
I'll try it this way and please use your imagination:
1) Zenith Epiginetics Corp. changes their name to Zenith Capital Corp.
2) ZCC currently has a can of worms so to speak. They reorganize by keeping expected royalties in ZCC and putting all the IP, etc. goodies into a Newco (Zenith Epiginetics Ltd.) but they remain a private company and current shareholders are not affected in any way.
3) After ZLtd. sits down and looks at what they've got, they themselves reorganize. Perhaps they decide to put anything related to ZEN3694 for example into Newco1, the complement stuff into Newco2, inflammation stuff into Newco3, ZEN3717 related goodies into Newco4, etc. You get the idea. Current ZCC shareholders are still not affected in any way.
4) Big Pharma A learns that their product will work better with ZEN3694 so they strike a deal with ZLtd. Assume that this deal is structured exactly like the original "Plan of Arrangement" that RVX made with RVX Therapeutics...which resulted in Zenith Epiginetics Corp. That's the reason you now have Zenith shares (unless you spent $100,000. to get some).
5) ZLtd spins out Newco1 and current ZCC shareholders receive an equal number of shares in Newco1 as they now have in ZCC. Any possible resulting royalties will flow through to ZCC. If Newco1 goes public you can sell your shares.
6) The phone rings and Big Pharma B wants all of the complement stuff so they spin out Newco2 publicly. Same deal: equal shares in Newco2 and royalties to ZCC.
7) It rings again and Big Pharma C wants ZEN3717 and the process is repeated.
Zenith Epiginetics Ltd. (Newco) is a goldmine. It seems to me that this type of scenario is the only way we will be able to sell any shares to put cash in our jeans.
ZCC is still a private company and it owns Zenith Epiginetics Ltd. the same way RVX had RVX Therapeutics except RVX was public so you could trade. ZCC also owns the RVX Royalty Preferred Shares. This proposal is their way of preventing dilution.
Keep in mind that ZCC is busy keeping order and raising money to continue operations and hopefully be soaking up royalties from RVX208 and eventually from ZLtd. When they decide it's time, ZCC will go public. If they were to issue ZCC Royalty Preferred Shares if/when any Newcos are spun out, it would prevent dilution of any Newco shares wouldn't it?
There are people out there who bought RVX after the spinout, therefore do not have any Zenith shares now. Once ZCC goes public those people can then buy some if they like. If my idea is possible, what do you think ZCC would be valued at? In my opinion they'd better get in early.
Are there really current Zenith shareholders out there who would vote against the proposal to be voted on in Jan. Seriously?? Instead imo you should be dancing and kissing Don's feet.
Of course there are no guarantees...this is the stock market. It's definitely a gamble but just imagine the possibilities. My advice fwiw...be happy...but be patient. It has been a very long time but that's the nature of the beast.
We may not be getting a full meal deal now but you can sure fill up on appetizers. Maybe they are getting ready to serve us one.
I hope I've explained myself better here...with paragraphs!! Please feel free to poke holes in this but it makes sense to me.
PVLee