Why does nobody seem to be interested in that company?
Roger
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Friday October 10 9:24 AM EDT
Company Press Release
Myriad Arranges Undervalued Share Transaction
SALT LAKE CITY, Oct. 10 /PRNewswire/ -- Myriad Genetics, Inc., (Nasdaq:MYGN) today announced that it has entered into an arrangement with a financial institution under which Myriad intends to
simultaneously purchase and sell call options on its own common stock in a private transaction.
''We believe that our stock is currently undervalued, and we view this approach as an opportunity to benefit from upside valuation potential,'' said Peter Meldrum, President and CEO of Myriad. ''In the
event the market price of the Company's stock increases beyond the strike price of the call option purchased by Myriad, but below the cap, the Company would benefit from a cash infusion without any
corresponding dilution.''
The purchase and sale of the options have been structured to result in no net expense to the Company. The call option to be purchased by Myriad will give Myriad the right, at option expiration, to purchase
400,000 shares of Myriad stock at a specified strike price to be determined. It is expected that this option will be cash settled, with a cap on total potential proceeds to Myriad. The call option to be sold by
Myriad will give the financial institution the right, at option expiration, to purchase 400,000 shares of newly issued Myriad stock at a specified strike price to be determined. If this second option is exercised,
when combined with the proceeds received from the cash settlement of the call option purchased by Myriad, the aggregate proceeds received by Myriad could total approximately $19,400,000, or $48.50
per share based on current market conditions. Both call options will expire approximately 14 months after issuance.
The financial institution has advised Myriad that the financial institution may engage in transactions, including market purchases and sales of Myriad securities, to offset its risk relating to the options.
Completion and pricing of the transaction, including determination of the proceeds, if any, which could be received by the Company at option expiration, are subject to market conditions, with the final terms
to be based on a number of factors, including the market price of Myriad's common stock at the time of issuance of the call options.
Myriad Genetics, Inc., based in Salt Lake City, is a genomics company and genetic testing company focused on the discovery and commercialization of genes involved in major common disorders, including
cancer, cardiovascular disease and central nervous system disorders. The Company is involved in strategic alliances with Schering-Plough, Novartis, Bayer and Eli Lilly and Co. Myriad provides commercial
genetic testing services based upon the genes which it discovers.
Myriad's news releases are available on the Company's website at www.myriad.com |
