Novelion Therapeutics NVLNF
June 11, 2021 - 10:27pm EST by
dr123
2021 2022
Price: 0.00 EPS 0 0
Shares Out. (in M): 20 P/E 0 0
Market Cap (in $M): 0 P/FCF 0 0
Net Debt (in $M): 0 EBIT 0 0
TEV (in $M): 0 TEV/EBIT 0 0

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Description

The idea is to bid for 50% minus one share* of Novelion before it completes liquidation. 
*To avoid destroying tax assets
 
Two reasons to care: its Canadian tax assets and Canada taxes capital gains at half the rate of income
 
The foreign tax assets, all of which do not expire:
-$200 million of Canadian NOLs
-$300 million of Canaidan capital loss carryforwards
-$30 million Swiss NOLs
-$10 million UK NOLs
 
-$40 million in US state NOLs that begin to expire in 2029 
 
Canadian taxation of capital gains:
Canada taxes capital gains at half the rate of income tax.
 
Who would benefit most:
Large Canadian investors that will realize large capital gains and have Canadian businesses.
I see examples but lack connections.
 
The catch:
There has to be a business reason to buy Novelion.
I believe this reason exists in the ¨Visudyne Stream ¨ that Novelion could not sell (see 4.0 Sales
Process in the linked liquidation report).
My belief is based on A&M, the liquidator, having tried to sell it. This attempt implies that A&M
believed someone may buy this asset.
Lastly, A&M may not allow a new bid for the ¨Visudyne Stream¨ as the deadline passed last
December. My counter is that A&M has a duty to maximize liquidation value, has yet to finish
liquidation given that it has yet to distribute the remaining value at Novelion (the 2nd distribution
of AMYT shares) and has the ¨right to amend or modify the solicitation process at any time at its
sole discretion¨ (p.2 of ¨invitation for offer¨ link).
 
https://www.alvarezandmarsal.com/sites/default/files/canada/can_dms_137359998_v1_s19130
50_second_report_of_the_liquidator_filed_14-jan-2021_0.pdf
 
 
 

https://www.alvarezandmarsal.com/sites/default/files/canada/novelion_therapeutics_inc._-_invit
ation_for_offers.pdf
 
 
 

 

I do not hold a position with the issuer such as employment, directorship, or consultancy.
I and/or others I advise hold a material investment in the issuer's securities.

Catalyst

not applicable

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