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Myrexis, Inc. (MYRX) Cancels Plan Of Dissolution (Update)

|Includes:Myrexis, Inc. (MYRX)

The Myrexis Board of Directors cancelled the special meeting scheduled for January 23, 2013, at which shareholders were to vote on a Plan of Liquidation and Dissolution.

The Board has decided to cancel the Plan of Dissolution, appoint a new President and CEO, and pay a special cash distribution of $2.86 per share with a record date of Monday, February 4, 2013.

This is a significant change in plans for Myrexis. The Board believes the new President can create more value for shareholders by acquiring revenue or income producing assets through a reverse merger or acquisition. The company also retains a brand, infrastructure, and remaining intellectual property that includes several license agreements.

I had anticipated an initial liquidating distribution on the high end of the DEF 14A estimate of between $2.67 and $2.83. The $2.86 special distribution is great. Under the new arrangement I will receive my entire $2.79 investment back, a nice annualized return, and I will still own the common with potential for unlimited upside for free! The current trading price of $2.91 implies a market value of MYRX after the distribution of $.05 per share.

What started as a special situation investment, with upside limited to liquidation value, has turned into a longer term holding that has the potential to generate a significant asymmetric return profile.

Disclosure: I am long OTCPK:MYRX.

Stocks: MYRX