CVR
Chicago Rivet & Machine Co.
stock NYSEAMERICAN

You are effectively choosing between taking roughly $0.40 today or retaining a non-transferable CVR that could pay up to $2.50 over the next several years. Even a $1.50 payout would still represent 3.75 times the value currently assigned to the CVR.

But you're still waiting on CVR that may never materialize, and the ROI isn't that impressive.

It’s a math equation plus relative to what alternative investments option you have. Ask your LLM of choice to give you the annualized rate of return from paying X (current share price - $6.75, so for those who sold at $7.20 for example that’s 7.20-6.75=0.45) for a return of &1 in year 4 $0.50 in year 5 and $1 in year 7. That would be your very upside annualized rate of return since it is not probability weighted (the entire payout is not guaranteed though I personally feel quite confident about it).
If ATAI were to drop to $6.75 for example, then buying as many shares as you could for that price would basically be a free money printer since you would get paid $6.75 and get a CVR for $0 ie the potential of $2.50 over 7 years for $0. If ATAI were to rise to $8, then I don’t think the risk of making less than $2.50 is a better outcome than just holding the SP500, mathematically speaking anyway.

So you're telling me I should sell for $430k tomorrow instead of waiting for Q3 2026 when my shares instantly get converted into 412k by my brokerage. The shares will get erased from my account and will get converted into CVRs. From there, all I have to do is wait to see if they become worth an extra $150k in the next few years... why would I sell my shares and lose out on the CVR? Do you know what you're even talking about?

Is the CVR misunderstood?

i sold 10K shares today, cost basis @ $1.18. waiting multiple years for another couple of dollars via CVR just doesn't make sense to me. still cleared well over 500%. i'll take the money now and earn more than what CVR is worth.

If I were a J&J, I'd come in with $8.50 upfront and more obtainable CVR for $3 and put this to bed.

today's premium of 0.37 is basically the PV of the CVR offering. i'm holding based on a grok thread i did, decent IRR if all milestones met (if). CVR is undervalued imo
How Sensitive Is It?
* If your effective tax rate is lower (e.g. 24–32% combined), the after-tax IRR rises to \~35–38%.
* If milestones come in 1–2 years earlier than the deadlines, the after-tax IRR jumps into the 40%+ range even after taxes.
Bottom line: Even after a hefty 37% tax hit, 32.5% annualized is still an outstanding return if you’re correct that every milestone will be achieved on schedule. It turns the $0.37 into a high-conviction, asymmetric bet.

That makes no sense - you lose nothing by waiting a month or two for potentially $2.50/share more per share (you get paid the $6.75/share outright and get a placeholder in your account for the $2.50/CVR), unless you think you can make like 37% more for sure over the next 2 months in other stocks. But I almost sold out of anger.

I knew this had CVR written all over it but this is disappointing beyond words. I expected at least some portion of the CVR to be contingent on revenues.

$ATAI wird für $6.75 pro Aktie + $2.50 CVR von $LLY übernommen.
https://ir.ataibeckley.com/news-releases/news-release-details/lilly-acquire-ataibeckley-advance-therapies-treatment-resistant

Can someone explain to me what’s the CVR? - yes I put money here to learn how to invest in stocks some time ago and I truly don’t understand what’s going to happen next

Announced today: $6.75 per share + $2.50 / share CVR (conditional future payments
Most people here are... underwhelmed
[https://www.prnewswire.com/news-releases/lilly-to-acquire-ataibeckley-to-advance-therapies-for-treatment-resistant-depression-and-other-mental-health-conditions-302827468.html](https://www.prnewswire.com/news-releases/lilly-to-acquire-ataibeckley-to-advance-therapies-for-treatment-resistant-depression-and-other-mental-health-conditions-302827468.html)

I am surprised they went for this deal
“Under the terms of the agreement, Lilly will acquire all outstanding shares of AtaiBeckley common stock for $6.75 per share in cash upon closing; plus up to $2.50 per share in the form of a Contingent Value Right (CVR) entitling the holder to additional cash payments upon achievement of specified development and regulatory milestones related to the BPL-003 and VLS-01 programs as follows: (a) $1.00 per share upon initiation of a Phase 3 clinical trial of VLS-01 prior to the fourth anniversary of closing; (b) $0.50 per share upon U.S. regulatory approval and DEA rescheduling of BPL-003 prior to the fifth anniversary of closing; and (c) $1.00 per share upon U.S. regulatory approval and DEA rescheduling of VLS-01 prior to the seventh anniversary of closing. The upfront cash consideration represents an aggregate equity value of approximately $2.8 billion and the CVR represents an additional potential aggregate equity value of approximately $1.0 billion. There can be no assurance that any payments will be made with respect to the CVR.”

<5Bn given they are pre FDA approval and sales. To be honest little surprise they are doing it this early in process. Their valuation could be much higher 12-24 months later. May be that is factored in the price LLY is offering them through CVR

I’m guessing $10-$15 per share plus CVR.

Hey everyone,
If you saw the $NXTC fusions news and panicked about legacy shareholders only owning 1.21% of the new company ($AVRX), you are missing the actual math here.
Here is a quick, objective breakdown of the facts:
# 1. The Real Share Count is tiny
After their reverse split last year, NXTC has exactly 3,612,096 outstanding shares (per their latest 10-Q). This is incredibly low.
# 2. The CVR is where the value is
Legacy shareholders get a CVR for 90% of the proceeds from selling/licensing their clinical cancer asset (SIM0505—a CDH6 ADC with a 55% ORR at ASCO) within 2 years.
Because the share count is only 3.6M, the distribution math per share is highly concentrated:
* If sold for $15M upfront: \~$3.74 per share.
* If sold for $30M upfront: \~$7.47 per share.
* If sold for $50M upfront: \~$12.46 per share

This seems like a good deal for the investors as well.

Get OSRH @ cheap while you can.. plus get CVR for now