Have a read at the article below.... and remember the time of this fiasco merger between Avexa and Progen, with Cytopia being in the middle of it.
Then look at how Avexa and Cytopia are going - quite well as they are implementing their Plan B or C.
Can someone tell me what the Plan B or C of Progen is ?
I know, I know, there isn't any. With so much cash in the kitty and so many opportunities in this market, this is pathetic, really. And unfortunately.
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Rowsthorn owns 13 per cent of Cytopia, which has struck a merger with Toronto-listed cancer play YM BioSciences.
Under the scrip deal valuing Cytopia shares at 13.5c, Cytopia's 1800 holders will own circa 10 per cent of YM BioSciences and exposure to two advanced compounds. YM's Nimotuzumab, which is at phase two/three stage, disrupts tumour blood vessels. Cytopia's CYT997 treats solid tumours and can be used orally or intravenously.
A year ago, Cytopia was all about blue sky. Now it's down to its last $4 million and urgently needs a deal. In March, Cytopia tried to merge with the cash-rich Progen Pharmaceuticals.
With plan B in mind, Cytopia was also chatting with YM. Plan C, an equity raising, was deemed unsuitable given it would have to be struck at 6c-7c a share.
Cytopia chief Andrew Macdonald concedes some investors preferred this option, but holders accounting for 40 per cent of the register have backed the YM scheme of arrangement.
Macdonald also accepts more than a few holders won't want foreign scrip, but argues they're fairly easily traded.
Criterion reckons Cytopia holders should stick with the journey. Macdonald says YM offers "fantastic access" to US capital markets and the right scientific networks.
As for the cigar-chomping Fidel, Nimotuzumab was discovered in Cuba, so under the US boycott the drug can't be commercialised in America.
"The Cuban embargo has caused some difficulties, to say the least," Macdonald says.
PGL Price at posting:
61.0¢ Sentiment: Buy Disclosure: Held
