Richard: I take it you don't like cost basing your shares. Especially to some long holders who have received odd ball stock dividends. Or traders with odd lots. As long as its round numbers, I'm ok with it. Don't get me wrong, I would rather have a stock split than dividend, but we both know what's needed for that.
If 5 mill was worth a 37% stake in DGI last year. What's the remaining 47% worth? At least Novo still has money for research.
GITY
RR
Nov 30-FRANKFURT (Dow Jones)--Bayer AG (G.BAY) plans to make cuts in pharmaceutical research, resulting in hundreds of job losses and reduced development costs, German weekly WirtschaftsWoche reports in an advance copy, citing Bayer board member Wolfgang Plischke.
This comes days after the head of Bayer's health care operations, Frank Morich, resigned.
According to the report, Bayer plans to stop research in three out of 10 indication areas. It may also contract out these activities, the report says.
Research and development into the central nervous system may also be contracted out. Bayer is in talks on that issue with Denmark's Novo Nordisk A/S (NVO) the report says.
New Brunswick Scientific co-founder and Chairman David Freedman said, "Early in 2000, we announced our intention to mitigate the negative cash flows related to DGI and restructured it from a limited liability company to a C-corporation to facilitate the process. According to the agreement signed on Friday, $5 million will be infused into DGI, reducing NBS' equity stake from 84 percent to under 50 percent."
Mr. Freedman continued, "This agreement accomplishes several important objectives. It provides our shareholders with upside potential, as we have retained an equity interest in DGI. It also frees us from the substantial cash outlays related to DGI's ongoing development. Moreover, DGI benefits from the fresh infusion of working capital necessary to further develop its promising technology."
The Company indicated that there is a likelihood of participation (but no existing commitment) by additional investors. If additional parties invest in DGI, NBS' ownership percentage would be further diluted. Going forward, DGI's financial results will be accounted for by NBS using the equity method. |
