John;
My 21million is based on the following
Acc. 10Q: The aggregate number of Registrant's outstanding shares on February 10, 1998 was 22,983,687 shares of Common Stock, .01 par value.
Henry Grausz, M.D. 5,817,993(2)
The net would be. 17,165,694. However, there are options..
Henry Grausz, M.D. 259,587
Bruce C. Galton 1,291,976
Richard S. Dondero 400,176
-------------------
1,951,739
For a total of 19,117,433 However, there are also options to Bluestone and to the lawyers and I wouldn't be surprised if others
had options as well also I'm sure the "oval" office of CIstron has performed its duties well enuf to have been granted additional options. So I guesstimated the 21 million.
As far as the court beimg in control of the assets I would think they are. But, which creditor is going to accept Cistron stock. I would be very surprised of the court would not look to liqiudate all his assets. When doing this the Cistron stock will take a hit.
With avg daily volume of even 10,000 shares per day it would take
58 days (3 trading months to liquidate). This would easily push
the stock down to under the .10 level.
(Without any positive developments and no plans for Cistron to set a cash dividend to its investors who is going to buy. So the stock will
fall..........)
The court will realize this after a few days of selling (just as I'm sure Med-Tech realized- in fact cistron can petition the court using the Med-Tech price as a realistic valuation in a buyer's market). In the end the court will be more than happy to sell the stock to CIstron for a dime.
What would be a real coup is for a Hedge fund to pay .25 for the stock. The court will have the cash at above Market and the balance of power would be shifted to where there are at least 13-14 million shares in the public hands that would vote for a liquidation of Cistrons assets (yield of 50 cents minimum).
For any V.C or Hedge fund it would be am easy bet. I think I'll start working on it.
Remember, at the meeting the preferred stock was shot down by over 6million Broker NO votes.... That would be at least 12 million out of 23 million... Insiders and directors only own 4.5 million shares Including many option so they are not votable.
If all options were excersiced there would be 25 million based on my
guess.
This would probably leave us with at least a 2/3 (16.5 vs, 8.5) majority of Liquidate Now proponents.
Well, what do we say... Is it time to start a revolution!!!!!! |
