Replies to post #12547 on Oncolix Inc. (fka ONCX)

[reaper247]

Thanks Pinky4,

I am actually stoked about Oncolix since the recent filings.

My initial concern was that the accredited investment in Oncolix, as a private company would end up being a big pile of debt as they were going public.

Its not the case.

That accredited investment will convert into an equity interest in Oncolix.

That means Oncolix officers, Greenville Health (the originator of Prolanta research) and trusts like Earnest Mario will be subject to any dilutive actions that would have a negative effect on current AEPP shareholders.

While there will be some dilution as Oncolix becomes public and brings equity investors along, there are a few things to keep in mind.

Oncolix was able to raise nearly $20M in accredited investment as private company. They will be going public with a fraction of that debt on the books.

Examples have been given of Bio pharma companies that maintain large market capitalizations.

Even with an O/S of 300,000,000, we could see a $300M market cap @ $1 per share, even as equity investors are brought on board and the relatively small notes convert into commons.

I can play devil’s advocate here.

Worst case scenario is that Oncolix maxes out the entire A/S of 950M (lets call it $1B for easy math.)

The potential $300M market capitalization that is possible compared to other bio pharmas with similar market caps would still equate to $.30 for AEPP.

I consider $.30 the downside for current AEPP shareholders as Oncolix becomes a public company. The upside looks much better when considering that equity investors are unlikely to allow that amount of dilution to happen.

The other thing to consider is that the value of Oncolix remains in their research and patents.

I am not seeing Oncolix assigning any asset value for those patents, even though I believe they could if they wanted to.

They didn’t try to assign any goodwill or intangible asset valuations, to offset their relatively small debt.

Transparency and honesty are good things to look for when considering R/M plays.

IMO and FWIW.

[dabullishbear]

I thought we lost you. Glad to see you're still around.