Cempra, Inc. (CEMP)

[agamemnus]

Melinta has a private market of common shares as well as Preferred Series 1 through 4.

Hercules Capital's latest SEC filings for June 2017 show they own $564K in warrants for Series 3 shares and $2.6M in Series 4 shares.

The warrants had gone from a valuation of $130K in Dec. 2015 to $100K to March 2016 to $564K in June 2017. That's an increase of over 300%. (They were originally bought for $622K a few years ago, but would be worth less even if the stock was worth the same, given time decay.) This suggests that Melinta's price has been rising substantially over the past few years.

We know based on Hercules' accounting of Series 4 equity, that they value it at about 30% higher than the beginning of the year -- the cost basis of those shares is $2M and they are worth $2.6M now.

Based on the number of Series 4 shares out, Melinta's Series 4 is worth $91m total. We don't know how to value the other equities, because we don't know how the Preferreds convert to common shares. We'll know when the proxy is out.

Finally, Melinta has a strong majority owner in Vatera Healthcare Partners, which invested in ~2014. Maybe they will even more (Cempra shares) after they are able to -- they can't do anything before the proxy docs are released because they have inside information on the company's finances.