Hi, Walter. No and no.
They bought the stock back $.10 below its current value. They've already made money and don't need a higher share price to get even. Grausz' stock went out at $.2274, and the current bid is $.32.
They reduced the share count, so that the current value of cash and equivalents is $.58 per share.
They were NOT suing Grausz. They had done so, and had won a judgement. However, Grausz filed bankruptcy, and CIST may never be paid. So what! The judgement is a penny per share, and Grausz was hung over the gunwale and sc**wed today, in the amount of $450,000 discount to market. IMHO, he deserved it. Do it again; wait till I get the camcorder out! (It is possible his creditors will get the proceeds from this transaction -- right on again!)
Lots of companies, Ariad for example, will be kicking themselves because they could have had Cistron's cash at par (paid in shares) rather than the toxic convertible private placements they have made.
I expect Cistron to go out well above 58 cents, sometime in 1999. |
