Yesterday, ALZM stock followed the usual pattern this week and gapped up at market open. At the end of the day the total share price gain was 15.29% and the closing price just two cents below the $1 mark. Trading volume was also the highest under the new trading symbol. Since Monday the stock has added over 240% in value, taking into account yesterday’s high at $1.20 for share.
Investor excitement has been driven not solely by the new trading symbol for the company’s stock. Formerly known as Stanford Management, Ltd., the company also changed its name to reflect its new mission: to create a portfolio of companies engaged in providing medical products and services. Thus, at the end of January this year ALZM completed the acquisition of Organ Transport Systems, Inc. (OTS), a biomedical company engaged in developing, patenting, and commercializing portable hypothermic, oxygenated preservation and transport technology for human organs. To pay for the acquisition ALZN issued 78,255,000 common shares to the shareholders of Organ Transport, representing 60% of ALZN outstanding stock.
Looking at the respective SEC filing, it is maybe not a surprise that ALZN went as high as $1.20. The terms of the agreement point that OTS was valued at $100 million when acquired by its previous owner, which divided by the issued 78,255,000 shares would mean an acquisition price of $1.28 per share for Allezoe Medical Holdings stock. Several facts cast doubt on that valuation, however.
The previous acquirer of OTS paid with shares and with a promissory note for the acquisition. Further, that estimated price does not take into account the already done and the expected in the future dilution for ALZN shareholders. Also, the company’s previous business left it with only about $1,000 in cash and $163,000 in liabilities.
