MYnd Analytics says shareholders will own 5.9% of Emmaus shares post-closing
MYnd Analytics and Emmaus Life Sciences provided an update to shareholders in which the two companies addressed recent questions related to the recently announced definitive stock-for-stock merger agreement. MYnd shareholders will own 5.9% of the fully diluted shares of Emmaus post closing. "We currently intend that MYnd shareholders, as of a record date (which we expect to be a day prior to the closing of the Merger), will receive new shares in connection with a spin-off equal to 100% of the equity in the entity that will own and operate the predictive analytics and telemedicine business, which we expect to begin trading as a new standalone company. This is subject to change as the approval process progresses. Emmaus is not publicly listed or traded and the value of the New Emmaus shares after the closing of the merger will ultimately be determined by the markets, but given the $3 billion worldwide market for its target disease, positive Phase 3 clinical date, FDA approval, reimbursement approval by the Centers for Medicare and Medicaid Services, distribution agreements with the nation's leading distributors, strong market update and rapid commercialization, this transaction is expected to create significant value for all shareholders. We will be issuing to the shareholders of Emmaus shares of MYnd equal to 94.1% of the shares in the MYnd parent company on a fully diluted basis. The final exchange ratio will be determined on a fully diluted basis, as we need to take into account the treatment of options and warrants. For illustrative purposes we are providing an estimate of outstanding common shares assuming conversion of preferred shares. Based on an estimated 9.2 million shares currently outstanding on a fully diluted basis, at yesterday's closing price of $1.06, the current market capitalization of MYnd would equal $10.6 million. Based on the current stock price, the value of 5.9% of New Emmaus after the closing of the transaction would be $169.1 million. For each $100 million of New Emmaus valuation, the MYnd shareholders will continue to own shares with $5.9 million of value."