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  • Myrexis, Inc. (MYRX) Cancels Plan Of Dissolution (Update) 2 comments
    Jan 23, 2013 2:04 PM | about stocks: 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.

    investors.myrexis.com/releasedetail.cfm

    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
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Comments (2)
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  • Clint Edgington
    , contributor
    Comments (354) | Send Message
     
    Congrats! Your analysis worked out well- even though not the way you thought-the benefits of a margin of safety!
    23 Jan 2013, 03:39 PM Reply Like
  • Brian Derenne
    , contributor
    Comments (16) | Send Message
     
    Author’s reply » Thanks! Yes, margin of safety always helps.
    24 Jan 2013, 12:00 PM Reply Like
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