Q: What is your take on the merger.
5i Research Answer:
From a capital markets perspective, it makes sense. On their own, each is too small and has too weak of a histort to attract any investor attention. Business wise it makes some sense, with some cost-savings, an OK balance sheet and a diversified pipeline of products. But we would not expect miracles here. It will still be a very small company, and shareholders will end up with shares of the merged company, and may take the opportunity to exit with losses already embedded. Cash flow will improve, but will still likely only be barely positive, or slightly negative. There will still be lots of challenges, but it is probably the right thing to do, considering each on their own is quite weak.