Within the IMRA publish feedback, I discussed that Sio Gene Therapies (SIOX) (~$30MM market cap) was a probable liquidation candidate. Sio Gene Therapies is without doubt one of the many pre-revenue biotechnology corporations — this one was initially targeted on gene remedy for Parkinson’s illness — that has given up growth and was pursuing strategic options because of poor scientific outcomes and/or powerful capital elevating circumstances. Typically these damaged biotechnology corporations find yourself doing a reverse merger, however right here the corporate by no means actually had its personal IP, that they had licensed the IP from third events and their NOLs are primarily domiciled in Switzerland the place company taxes are low, thus limiting their worth. Apart from a public shell, which is not in a lot demand lately when SPACs are all liquidating and the IPO market is pretty quiet, SIOX has little worth remaining outdoors of its money. This week, SIOX introduced the board accepted a plan of liquidation (requires shareholder approval).
The stability sheet is pretty easy at this level (9/30 10-Q):
They’ve already laid off most of their employees and gotten out of their workplace leases (no non-current liabilities are remaining), this must be a reasonably straight ahead liquidation. The remaining money burn must be restricted to some remaining G&A and liquidation prices. They do point out in the identical 10-Q that “we proceed to conduct one pre-clinical analysis and growth program” nevertheless it have to be small and certain straightforward to pause. Along with the above stability sheet, they do have a CVR-like fee of as much as $7MM after their sale of Arvelle Therapeutics, whereas that is a pleasant lotto ticket, it additionally means the longer term liquidating belief is likely to be round some time (unclear to me how lengthy these milestone funds lengthen) which might decrease the potential IRR.
Disclosure: I personal shares of SIOX