Aug. 22 at 6:56 PM
$HOWL
Ambros implied equity value
$500,000,000
Werewolf (HOWL) implied equity value
$47,500,000
PIPE financing
$150,000,000
Ambros common stock 11,608,333 shares
Ambros preferred stock (A-1 + A-2, as-converted) 34,476,913 shares
Ambros outstanding options 5,997,167 shares
HOWL shares outstanding 48,599,066 shares —
Ambros ownership of combined co. 71.7%
Legacy HOWL ownership of combined co. 6.8%
PIPE investor ownership of combined co. 21.5%
The new company will have 714,692,147 shares and the total valuation will be 696,500,000. So the estimated share price after closing would be 0.976. Mechanically, this all makes sense although the percentages are subject to change upon closing. With a reverse stock split, it will be higher. The most important part is the potential of Ambros's phase 3 trial. The asset has been in the Italy market and derisked. With favorable designations of FDI, this will be the first drug for CRPS-1.
