Musicguy and Boydude,
Just because Andrx made an announcement today, don't be so quick to believe that Andrx is calling the plays here. They still need to file a registration statement with the SEC, and last time I checked, the SEC isn't approving registration statements when title to a company's sole asset is in dispute.
I read the announcement a little differently. I look at the announcement and say to myself, Andrx isn't going to fund Cybear any longer. They've reached a watershed. This merger brings in outside people with a whole new set of ideas, baggage, and potential liability. I look at this as Andrx trying to test the waters and see if the company Cybear and its concept can bring in capital as a stand-alone entity. Looks to me like they appointed a couple of straw men to run the place. The announcement didn't say these gentlemen were leaving their current jobs. Phymatrix is in Kentucky or Tennessee for crying out loud. That means these new executives who are going to "lead" are probably stewards, not operating guys.
If anything, IMO this helps Medix. Let's say the underwriter (a most important unidentified party to this transaction) exercise places a valuation on Cybear (or 1997 Corp.), or whatever they are going to call it, at $50 million (the minimum market-cap required for NASDAQ initial listing), subject to SEC approval of the registration statement. IMO this is not an unreasonable market-cap in today's world of high RPM caps for medical information and Internet companies. Now let's assume that some or all of Medix's allegations hold water. Let's say maybe Andrx did use Medix technology. How much of that $50 million market-cap can be latched onto by Medix?
IMO forget Andrx going after Medix. Something tells me that Medix may have put itself in a pretty good position with its lawsuit. Looking at it from Andrx's position, if you're being sued for $396 million, what difference does it make if you pay $4.5 million in stock or $2.5 million in stock? Either way, if it were possible, IMO it would have happened already. |
