New Capital
Contrarian, deep value, long/short equity, special situations

Cadus - Shell Company Turning Into Real Estate Venture

For the last 15 years Cadus Corporation (OTCQB:KDUS) was a shell company with roughly $20m-$25m in cash, c. $20m-$30m of NOLs, minimal annual cash-burn and immaterial liabilities. During these years the company has traded slightly below cash value of the shares. Surprisingly Carl Icahn was a significant shareholder during all these years, with his stake gradually increasing from 28% in 1999 to 40% 2013 by the end of 2013. With his stake in mind, investors were naturally expecting some type of transaction that would allow realization of NOLs and potentially drive up the value of the shares. However, nothing changed for 15 years and eventually some activist shareholders were even pushing for liquidation of the company in order...

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