AEZS and CZO entered into an agreement to combine operations in an all-stock merger of equals transaction in December of 2023. The merger was also recently approved by both companies boards on March 12th and is expected to close in Q2 of 2024. The combined company will benefit from ongoing revenue from existing CZOs products, providing near-term revenue owing to the development and commercialization opportunities in the cosmeceutical and nutraceutical space. AEZS will provide license revenue from the company's pharmaceutical products, including Macrilen/Ghryvelin, which have long-term potential. Individually, both these company's were risky investments due to size and the speculative nature of them. This is a unique scenario with a merger of equals where two small companies are joining forces and should create one stronger company overall. We would be comfortable cashing out here as effective integration - which can easily go sideways, will be key for future growth and this is hard to predict. For risk seeking investors, there is upside potential with two publicly traded entities effectively joining forces and accessing each others resources.
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