Mast Therapeutics, Inc. (MSTX)

[tinylion]

I've spent a fair amount of time on the S4. MAST evaluation for calculation of the exchange ratio is .09-.10. My belief is that the sequence of events will be as follows...
Vote to merge will be yes, est. 872million shares issued to pay Savara common stockholders $4.22-4.25 per share for 20,520 shares and the existing outstanding shares of around 262M will be used to purchase 6,480,000 SAV shares to give MAST holders their 24% of SAVARA. The exchange ratio is stated in the S4 at 46.92 shares of MSTX for 1 share of Savara.

If you own MSTX for around .09-.10 then you got equal value for your shares if you own for more then you pay more than $4.25 per share and if you own for less you got a deal and paid less per share. EX. 10000 shares of Mast gets 213 shares of SAV no matter what you own MAST for.

Reverse split will probably happen instantly upon signing as over 1 billion shares of MSTX on the market would probably cause share price to drop to .02-.03 per share. I'm guessing somewhere around 35-40 to 1 split ratio. Coincidently that range would make the share price acceptable to NYSE and put it right around 4.25 which is what MSTX holders paid for their shares. If that does happen the exchange ratio would be adjusted to about 1.24 MAST shares for 1 share of SAV. Your total cost doesn't change i.e. if you had 100000 MSTX at .0905 ( S4 ratio calc. number )at $9050 your 2131 shares of SAV would be 2131x$4.25 or $9050.

If the market see the value of the combined companies to be greater than the 4.25 valuation of Savara then you may be ahead if they disagree and think the initial evaluation of the two companies is less well...you know.