"Valeant Approved to Buy Dendreon Assets for $495 Million"
"There is no question that a sale should be approved," Judge Laurie Silverstein of the U.S. Bankruptcy Court in Wilmington, Del., said as she made her ruling Friday.
The sale is scheduled to close on Monday, and Mr. Ziman said he expects the company to exit Chapter 11 protection as soon as June.
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DNDN, following the release of its Q2 10Q on August 14, was one of the great asymmetric bets of 2014. The company blatantly told the market that its equity would be massively diluted or even extinguished and that it didn't have the means to repay its debt.
Yet the company had an equity market cap of over $200MM for the next six weeks, and at one point, the stock price had rallied 30% from the post 10-Q low. There were long dated puts available during this time frame that ultimately provided returns in excess of 100% with very limited downside risk.
Another example of the glaring exceptions to the EMH that persist in the capital markets.
Amazing that Valeant didn't build a position in the notes when they were in the 50s. An enterprise value of <$300 million would've been much cheaper than what they paid.
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