Interesting find. Too bad that you didn't start this thread when MEAS was at $.50 per share nine months ago. LOL.
Per the company's proxy materials, MEAS had 4,716,438 shares outstanding as of May 14, 1999. This balance includes the effect from the conversion of 500,000 preferred shares into a like number of common shares on May 1, 1999. These preferred shares were sold in a private placement in February 1999 at $6 per share. Nice return.
The initial filing of the AmericasDoctor.com S-1 does not price the deal but it might be useful to run some assumptions using KOOP as a comparative. When KOOP went public, it sold, including the over-allotment option, 10,781,250 shares, or approximately 37.3% of the company. There are currently 28,920,841 shares outstanding. Yahoo shows only 27.5 MM but that number does not include the over-allotment shares. The IPO came out at $9 per share, the stock eventually spiked to 45 3/4 and now sits at 29 5/16. A triple.
AmerciasDoctor.com is looking to raise $60.0 MM. Given that this sector has been hot, let us assume that the $60.0 MM buys 30% of the company. That gives the company a pre-offering value of $200.0 MM.
MEAS' pre-IPO interest in AmericasDoctor.com is 14.5%. Assuming that 30% of the company is sold off, MEAS will retain a post-IPO interest of 10.15%. If we assume that AmericasDoctor.com doubles from its offering price, MEAS' 10.15% would have a gross value of $40.6 MM ($400.0 MM times 10.15%). Discount the $40.6 MM by 40% to reflect tax and liquidity issues, and you are left with $24.36 MM, or $5.16 per share ($24.36 MM divided by 4,716,438 shares).
Based on Friday's closing price of $20.80 per share, that would value the remainder of MEAS at $15.64 per share. That seems a bit pricey and probably explains why the company is looking to be acquired. Based on a review of your profile, however, you are probably much more qualified than I to evaluate the value of MEAS's core business. The above is JMHO.
The MEAS proxy materials can be found at:
sec.gov
The AmericasDoctor.com S-1 can be found at:
sec.gov |
