Between the ACTIV-5 and the PREACH-M trial results, I've got to believe that the FDA will be forced to conclude that, with the previously-reported LIVE-AIR stellar results, that there is sufficient data to approve the resubmission of our EUA application, especially now that there are no approved mAbs to treat hospitalized covid patients, and that the FDA has been encouraging mAb development for this indication. Regulatory approval, whether from the FDA or from Australian regulators, may be just the type of news we need to declare a 5:1 forward stock split, and cause a massive short squeeze. If there are also IND treatment results regarding the use of lenz prophylactically, in a cocktail with an anti-viral, polyclonal antibodies, and with the Novavax vaccine, we could also be looking at an actual prevention of covid infection.
I mention this, as to me, this greatly reduces the importance of concluding a business combination.
BUT, I don't think management would agree with that assessment. I think management sees a tremendous advantage by partnering, with PCI, for example. And I could see reluctance on the part of PCI, if they are being asked to give up 238M shares of their company, in exchange for 238M shares of Humanigen's stock, with a total dollar value of $7.145M (at $0.03 per share, post-split price). But, if Humanigen's market cap increases to $8.5B (if the lenz cocktail is used with Janssen and Novavax vaccines), we would be looking at a share price of $14.27, or a total dollar value of almost $3.4B for PCI/our stake.
And THAT'S got me excited, if management seems eager for this business combination, knowing the potential value of the stock dedicated to this business combination. Or...perhaps management is negotiating for an upper dollar limit for the stock going to PCI. So I'll be curious to see what this huge value could be for us, by combining the companies.
AI
