Thanks for your thoughts.
I'll toss out some very, very rough guesses as to how much might be left over, but again these are very rough guesses since, as you said, this case has a long way to go.
Let's assume that the claim from Evolution is upheld and that they have the full $250 million in debt that needs to be repaid. Let's ignore legal and administrative expenses fr now.
They state $377 million in assets; not sure how much they valued CSCY at when they stated that but let's assume it's valued at the $249 million offer. After the sale of CSCY that would bring the leftover assets to $128 million. For simplicity let's assume that sale pays off all of the debt since there's only a $1 million difference.
That leaves us with $128 million in assets. If shareholders got the full stated value for these (which is usually not the case), total cash per share (with 35 million outstanding) would be $3.66. With today's closing price there's not much upside left from here given this optimal scenario.
Of course, usually the remaining assets are sold at a steep discount. If they were sold at a 50% discount, the cash per share left would be $1.83. If the remaining assets were sold at a 75% discount, the cash per share left would be $0.92.
Obviously these are very, very, very rough guesstimates, but they do suggest that anyone buying this at its current level hoping for more is likely taking on a lot of risk for probably little upside.
AI
