AEterna Zentaris Inc. (AEZS)

[xyz1002]

Why this could see $2+ (potentially) soon

1) The reason it came down so hard was the warrant conversion which is over or almost over IMO. See math below.
2) On Aug 12, they had 182M OS and 29.8M of series B warrants (other warrants are out of money)
3) On Sept 21st the PR said they had 10.8M warrants and the OS would be around 363M by market CLOSE (not at market open)
4) Which means they converted 19M warrants with less than 180M shares
5) The waarnts are converted with weighted avg pps and the pps has gone up
6) So the rest 10.8M warrants would need less than 90M shares
7) They said they expect the OS to be around 363M shares by mkt close Sept 21st - meaning they knew how many warrants would be converted that day for how many shares
8) On Sept 21st there were more than 130M shares traded-significant amt of warrants converted that day and the OS was to be less than 363M after that day conversion
9) So I don’t see, how the OS would be more than a max of 450M after all wararnts converted
10) Once the warrants conversion is done the ppps will move upward simply following technical as there is no more outside selling pressure
11) They had $45M cash and that will last for a while, so no worry of dilution in near term
12) If this company was a privately held entity and backed by VC’s it would be valued anywhere between $500M-$800M in my view. That is my day job, you can say. So I know a lil bit abt valuation.
13) With around 400M OS this has to hit $0.50 to get a decent valuation and it will
14) AEZS CEO paid 58 cents per share he got 175, 000 dollars shares on November 2014.
15) If the pending trial results are good this can spike 500-1000% at mkt open one day
16) Bios are notorious for gaining 20x-even 100x with test results
17) Down side is pretty much gone-only upside here

All IMHO-Good luck