excerpt from 10q. My understanding is that HMSR will convert this debt to equity in Jan and that will remove 8.5 million in liabilities I would atribute weakness to : tax selling, Smith B pulling coverage and a general lack of understanding of the company.
In January 1997, the Company entered into a Restructuring Agreement of
the debt related to its acquisition of Novo Nordisk's plasma products
unit. Pursuant to the Restructuring Agreement, approximately
$23,000,000 of indebtedness owed to Novo Nordisk was restructured by
way of issuance by HemaSure to Novo Nordisk of a 12% convertible
subordinated promissory note in the principal amount of $11,700,000,
which is due and payable on December 31, 2001, with interest payable
quarterly (provided that up to $3,000,000 may be forgiven in certain
circumstances). Approximately $8,500,000 of the reduction of such
indebtedness was forgiven. The remainder of the reduction represents a
net amount due from Novo Nordisk to HemaSure related to various service
arrangements between the two companies. The amount included in the
balance sheet at September 30, 1997 and December 31, 1996 includes the
effect of the Restructuring Agreement net of the $3,000,000 contingency
amount to reflect the most probable result of the Company's decision to
exit the plasma business. All amounts outstanding under such note are
convertible by either party, commencing January 1998, into shares of
common stock, par value $.01 per share, of HemaSure ("Common Stock") at
a conversion price equal to $10.50 per share. |
