# PRAX Analysis after new securities sales, and recent agreements

Short
Updated
BATS:PRAX   Praxis Precision Medicines, Inc.
8791877 = Shares as of 31st December + New sales to BCPE
@
initial book value of 10.12 + (443k shares @ 22.56)
= 10.832665237 new book value
+
approx 4230000 of shares and warrants sales approx near @33.5
= approx 18.84\$ / share
+ \$5M in cash payment
= 19.22\$ / share

Total Shares = 13021877

Anticipated quarterly loss between 2 to 3\$ per share

264M\$ on milestone achievements for development, regulatory and commercialization
(subject to milestone achievements)

Let's say milestones achievements takes between 6 mos to 2 years as follows:
1) 6 months scenario - development
= loss of approx 4-6\$ per share
= +88M for development milestone achievement
= -5\$ loss + 19.22 + ( 88M if milestone is achieved)
= 20.597\$ with milestone
= 14.22\$ without milestone

2) 1 year scenario - development+regulatory
= loss of approx 8-12\$ per share
= +132M for development+regulatory milestones achievement
= -10\$ loss + 19.22 + (\$132M if both milestones are achieved) + (or 88M if only one milestone is achieved)
= 9.22\$ without any milestone
= 15.97\$ with one milestone
= 19.35\$ with both milestones

3) 2 years scenario - dev+reg+commercialization
= loss of approx 16-24\$ per share
= +264M for development + regulatory + commercialization milestones achievement
= -20\$ loss + 19.22 + (\$264M with 3 milestones) + (or \$132M with two milestones) + (or 88M with one milestone)
= -0.78\$ with no milestones
= \$5.97 with one milestone
= \$9.35 with two milestones
= \$19.49 with all 3 milestones

These calculations assume there's no other additional securities sale than above.
Comment:
Given short term purchases at 35.5\$/share in total of \$150M (recurring dilution until finished) and current shares outstanding, short term book value would be 19.22\$ / share.
Plus, as achievement of milestones is uncertain.
Although, cash burn is certain.
Considering imminent dilution to upto 19.22\$ / share uncertainties on any milestones, imminent recurring cash-burn, and debt, the stock is trading at a significant premium.
Hence, a short tag!
Comment:
Today's rally, followed by sudden retracement from 45 to 40.7 indicates almost confirmation of a Double Top for PRAX