NOVELION THERAPEUTICS INC NVLNF
January 13, 2020 - 1:44pm EST by
dr123
2020 2021
Price: 0.75 EPS 0 0
Shares Out. (in M): 20 P/E 0 0
Market Cap (in $M): 15 P/FCF 0 0
Net Debt (in $M): 0 EBIT 0 0
TEV ($): 0 TEV/EBIT 0 0

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Description

NVLNF at $0.75 probably yields >=30% IRR per the background linked below (i.e. each NVLNF share will be exchanged for about .634 shares of AMYT, which trades on LSE, by 4Q2020)
 

background:

https://seekingalpha.com/article/4315725-novelion-therapeutics-25-sale-ends-thursday  
 
https://www.sec.gov/Archives/edgar/data/827809/000110465920000921/tm201064d1_ex99-1.htm  
 
objection to my "probably":
 
AMYT cannot be hedged, who knows what it is worth
 
my response to this objection:
 
On Sept 25, 2019, AMYT announced:
 
"Amryt has completed the $60 million fundraising by way of the issue of new Ordinary Shares at a price of $1.79 (£1.44 based on an exchange rate of £1:$1.2485) per Ordinary Share to new and existing investors, and certain creditors of Aegerion who backstopped the fundraise."  (sourcehttps://otp.investis.com/clients/uk/amryt_pharmaceuticals_dac1/rns/regulatory-story.aspx?cid=1375&newsid=1331591
 
AMYT also announced that as a result of the above, its largest new shareholders were:
 

 

Shareholder

Number of ordinary shares on Admission

Percentage of the issued share capital on Admission

Funds managed by Athyrium Capital Management, LP

42,883,097

27.2%

Novelion Therapeutics Inc.

14,040,250

8.9%

Funds managed by Highbridge Capital Management, LLC1

12,903,055

8.2%

 
 
As Athyrium and Highbridge were the largest Aegerion convert holders who backstopped the AMYT fundraise, they increased exposure to the Aegerion drugs in which they've been invested for years. 
 
At US$1.79 per AMYT share, each share of NVLNF would be worth $1.15 per share. 
 
The AMYT CEO this month bought ~8k AMYT shares near $1.60 per AMYT share.
I do not hold a position with the issuer such as employment, directorship, or consultancy.
I and/or others I advise hold a material investment in the issuer's securities.

Catalyst

Distribution of AMYT this year, probably in 4Q

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