Here is how the REGEN Divy works/plays out:
This entire move by Koos was to both unlock shareholder value and at the same time reward the BMSN longs that have suffered through but stuck with the company.
BMSN share structure and share commitments to the scientists is less than pristine, although it will allow for excellent gains going forward based on it's direct 58% ownership in REGEN. Regen spin-off created a good bank with a perfect share structure and NO junk around its neck. REGEN owns all of the valuable IP and promise going forward....and is free to make great financial deals and partnerships going forward free of the BMSN overhang.
Once regen begins trading, it's pps will set the pps of BMSN, with a current ratio of $1 of REGEN pps to be equal to about $.01 of BMSN pps (BMSN owns 30M shares of regen, so multiply the regen pps when trading begins by 30M shares, and divide by the BMSN o/s (around 3B).
Regen's price will be determined by market forces, its execution of FDA approvals and filings, etc.....along with the fact that there are only 20M shares in the float and 99% of them are gonna be held with a kung foo grip). Regen's PPS will be greatly enhanced by the laws of supply (none really available to buy), and huge demand (everyone is gonna want this baby)...which will serve as not only PPS support but jet fuel.
By spinning of a portion of REGEN, Koos has and is effectively unlocking regen's true value which was only to this point a function of and limited by BMSN and its share structure issues. this is unlocking all the value that can be obtained and at the same time also greatly enhancing BMSN's value in the process, regardless of its share structure.
Hit the ask early and often!
TRAZ
