PolyMedix, Inc.(fka PYMXQ)

[gandalf2325]

Letter from the CEO is on the PYMX website as the PR explains...

One of the potential scenarios that is coming within the month is a recapitalization (secondary offering). This would include a reverse stock split and the influx of at least $18.5 million in cash through the issuance of new shares. It's likely the new owners would own somewhere around 50% or more. So for simplicity sake let's just ballpark that the stock shows enough life and the new shares are issued at 19 cents and 100 million shares are issued to raise the $18.5 million. That gives current owners 50% of the "new" company and the new investors 50%.

Now the company has 200 million shares O/S versus the current 100 million. (ignore the RS in this thought exercise as it is immaterial to this calculation).

What is a company worth with enough cash to run two Phase 2 trials - each addressing a significant need with all the unique positives that all remaining investors here already know all about? Anybody could find lot's of examples of at least $100 million for companies with less potential - and it's not too hard to argue for a $200 million market cap. Obviously it wouldn't happen overnight as the new management would need to deliver on the plan and build confidence with the investment community, but say in 12 months right before the new trial results are released?

$100 million market cap would be 50 cents a share - back to a buck at $200 million mkt cap. The first target is not an unreasonable one at all. I still think a re-cap is the most likely course forward and I think it could make sense with the right man running the show (no comment on whether Smith is the man, although the letter today was a step in the right direction.)

Obviously a partnership would only further help the cause.

Could be interesting times ahead. Although could be worth nothing still...