TORONTO and EDMONTON, Alberta - In a significant move within the biopharmaceutical sector, Aeterna Zentaris Inc. (NASDAQ: NASDAQ:AEZS) (TSX: AEZS) and Ceapro Inc. (TSX-V: CZO; OTCQX: CRPOF) announced today that they have received a final court order from the Court of King's Bench of Alberta to proceed with their planned all-stock merger.
The transaction is expected to be finalized in the second quarter of 2024, subject to the satisfaction of customary closing conditions and regulatory approvals.
Aeterna Zentaris is known for developing macimorelin (Macrilen; Ghryvelin), which is the only oral test approved by both the U.S. FDA and European Commission for the diagnosis of adult growth hormone deficiency (AGHD). The company is also expanding macimorelin's indications to include childhood-onset growth hormone deficiency (CGHD).
Additionally, Aeterna's pipeline includes pre-clinical developments for various conditions such as neuromyelitis optica spectrum disorder (NMOSD), Parkinson's disease (PD), hypoparathyroidism, and amyotrophic lateral sclerosis (ALS).
Ceapro, on the other hand, specializes in the development of extraction technology and production of active ingredients from oats and other plant resources. These ingredients are used in cosmeceutical, nutraceutical, and therapeutic products for both humans and animals.
The merger aims to combine the strengths of Aeterna's pharmaceutical and diagnostic products with Ceapro's plant-based technology and active ingredients. The companies believe that the merger will create a platform for growth and enhance shareholder value. The management teams of both companies have expressed their satisfaction with the court's decision and are looking forward to completing the merger.
The companies have advised that further details regarding the transaction are available in their respective management information circulars filed with SEDAR+ and, for Aeterna, also with the U.S. Securities and Exchange Commission (SEC).
This news article is based on a press release statement.
InvestingPro Insights
As Aeterna Zentaris Inc. (NASDAQ: AEZS) prepares for its merger with Ceapro Inc., investors are closely monitoring the company's financial health and market performance. According to InvestingPro data, Aeterna Zentaris has a market capitalization of 10.11 million USD, which is a critical figure for stakeholders to consider in the context of this strategic move. With a Price / Book ratio of 0.56 as of the last twelve months leading into Q4 2023, the company's stock is trading below its book value, which could indicate that it is potentially undervalued or that the market is factoring in certain risks.
InvestingPro Tips highlight that Aeterna Zentaris holds more cash than debt on its balance sheet, which is a reassuring sign of financial stability as it enters into the merger. Additionally, analysts predict that the company will be profitable this year, a key insight for those looking forward to the potential growth opportunities post-merger. However, it's also noted that the company has not been profitable over the last twelve months and is quickly burning through cash, which could be a concern for long-term sustainability.
For investors seeking further guidance, there are additional InvestingPro Tips available for Aeterna Zentaris, which can be found on the InvestingPro platform. Use the coupon code PRONEWS24 to get an additional 10% off a yearly or biyearly Pro and Pro+ subscription, providing access to comprehensive analysis that can inform investment decisions during this pivotal time for the company.
The merger with Ceapro Inc. is set to create a unique platform in the biopharmaceutical and plant-based technology space. With the potential for enhanced shareholder value, the financial metrics and insights from InvestingPro can serve as a valuable resource for investors navigating the evolving landscape of Aeterna Zentaris.
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