ToffCap's Monday Monitor #50!

Actionable event-driven and special situations

ToffCap’s Monday Monitor is our weekly overview of actionable event-driven trades and special situations.

Disclaimer. ToffCap’s Monday Monitor is provided for informative purposes only. No due diligence has (yet) been performed on the names on this list. The list might change strongly on a regular basis. This overview does not constitute advice; always do your own due diligence. The list is dynamic; it continues to grow and change. If you have interesting additions to the list, feel free to contact us at contact@toffcap.com or on Twitter.

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This week’s additions and highlights

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1. SPIN-OFFS

• Euroseas (ESEA US). We note the upcoming spin of three vessels. Spin date Jan. 30. Always interesting to check these weird small spins out, particularly in end-markets that are generating healthy cash flows. UPDATE (March 10, 2025) Euroholdings spin on March 18 (EHLD).

  UPDATE (March 24, 2025) We flag the completed spin, with EHLD already down almost 70% (basically what we expected / hoped). We're keeping an eye on this one.

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2. STRATEGIC ALTERNATIVES & REVIEWS

(Potential take-outs, asset sales, M&A, etc.)

• Cargo Therapeutics (CRGX US). Net cash, negative EV, busted biotech. Cargo recently announced that it will discontinue its lead asset Phase 2 trial, collapsing the share price. The company subsequently announced that it will be reviewing strategic alternatives and will reduce its workforce by 50% (the first major step in a liquidation). Its not yet a full liquidation as the company still has some assets, so there's some risk there. But very high discount to net cash. UPDATE (February 24, 2025) To note that Tang Capital disclosed a 5.9% - you know what this means by now.

  UPDATE (March 24, 2025) There we go. Cargo recently provided a corporate update, indicating that it cut its workforce by 90%, that development has been suspended and that it will pursue a reverse merger or business combination. Roughly $370m in cash and CE as of Dec 31.

• Adaptimmune (ADAP US). Strongly net cash, almost busted biotech. ADAP announced that it will review strategic options. Meanwhile it cut some programs, 30% of its workforce and is targeting additional $75-100m cost savings. Interestingly, ADAP is on the verge of commercializing a drug, with the company targeting profitability by 2027.