AGM this friday, so assuming the update on Medivet is provided...

AGM this friday, so assuming the update on Medivet is provided then and is material. The market should be updated on friday or monday preopen at the latest.

Hard to speculate what the outcome will be, but I fail to see how investors would want anything less than a controlling stake of at least 50.5% (out of 60.5% owned), and if MLA somehow did retain a small holding, would they do so to ensure a preferred supplier agreement in manufacture of some of the test components?

So I'll take a crack at an estimate below;
A price to sales ratio could be anywhere from 2-6x (using an average of a selection of biotech ratios obtained during a quick google search).

Given $2.81m revenue from the US business (as per the recent financial report), and 60.5% holding this could translate to $3.4m-$10.16m. As I'd look at the situation currently I'd say realistically they'd be looking on the low end and as it's not for the entire company, and requires additional cash to fund and grow. However the business certainly isn't mature and there is significant growth and potential to the right bidder.

I'd say that selling a controlling 60.5% stake for $3.4m and they would've done quite well.

However I'm going to be ever so slightly grounded in my estimate and say they sell 50.5% for $2.5m, whilst retaining a 10% stake and a preferred arrangement on any equipment manufacture.


All IMO, DYOR etc....