Buy Catalyst Biosciences

October 12, 2022

CBIO: $0.54

Market Cap: $17MM

Enterprise Value: -$9.1MM

Expected Distributions: $0.67

Upside: 24%+

Recommendation: Buy up to $0.58

Summary

This thesis is extremely simple. Catalyst Biosciences is in liquidation. It recently paid out $1.43 per share ($45MM). Its current market cap (post distribution) is $17MM and it has $26MM of cash and no debt. Management previously indicated that it could distribute up to an additional $20MM ($0.64 per share). But wait there’s more. CBIO is in the process of selling its remaining pipeline assets. It already sold one asset for $50MM. If the remaining assets are sold for $50MM, it would result in