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To: Doug B. who wrote (1472)7/10/1999 12:42:00 PM
From: Alan Gallaspy  Read Replies (1) | Respond to of 3661
 
Doug B.,

The 400k shares Ian is talking about is in regard to the epi company Concept Systems Design that Mattson bought last July. The owners of this private company were given 800k shares of Mattson Stock in connection with the deal, and it is widely thought that they will sell most of their Mattson holdings. It seems that in connection with this stock that they were given outright, there is a provision to give them the additional 400k just in case they could not unload their initial holdings at $12 or better.

Some of the details of the deal are here in post # 829.

Message 5194631



To: Doug B. who wrote (1472)7/10/1999 12:45:00 PM
From: Ian@SI  Read Replies (1) | Respond to of 3661
 
Sorry for the oblique reference.

Sometimes I forget that not all readers of this thread are fully versed on all aspects of MTSN. ;-)

The specific paragraph came from the most recent 8-K filed on Edgar dealing with the Concept Design acquisition.

The shareholders referenced in that paragraph are the former owners of Concept Design.

Essentially, their payment was exclusively with MTSN shares, 100,000 of which have been held in escrow pending sufficient Epi sales within a specified time period. ... i.e. some protection for MTSN. On the other side of that coin, the concept design holders were given protection in case MTSN's share price didn't recover sufficiently to adequately compensate them for their company's potential.

That protection for the former Concept owners is null and void as of Friday, the 10th consecutive day that MTSN's price closed at or above $12.

To be absolutely specific, until Friday, normal shareholders were facing a potential dilution from those incremental shares. The potential for that dilution is now removed.

In other words, it's a good thing for us lowly common shareholders of MTSN. :-)

Ian