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Gold/Mining/Energy : Energy Biosystem Corp NASDAQ-ENBC -- Ignore unavailable to you. Want to Upgrade?

To: Sector Investor who wrote (333)	5/23/2000 11:15:00 AM
From: Amit Ghate	Read Replies (1) \| Respond to of 336

Anyone have any thoughts on the MAXY arbitration. On one hand, management states that they don't believe it will have any material impact on the financial statements: "On April 27, 2000, the Company received notice from Maxygen Inc. ("Maxygen") that they had elected to seek arbitration under the License and Development Agreement dated May 19, 1997 between the Company and Maxygen (the "Agreement"). Maxygen claims that the Company used Maxygen's confidential information which they allege was provided to the Company under the Agreement to develop its own RACHITT-TM- directed evolution technology. The Company denies all allegations of Maxygen and believes that its technology was independently developed after the collaboration with Maxygen ceased. No date for arbitration has been set. While the Company believes that there is no merit to the allegations brought against it by Maxygen, the Company cannot assure that its defense will be substantially successful, if at all. As with any litigation the outcome cannot be predicted, however, the Company currently believes it will not have a material adverse affect on the financial statements." See note 1 "Basis of Presentation..." But on the other hand, they say it could materially affect the ability to secure financing: "In April 2000, the Company received notice from Maxygen, Inc. that they had elected to seek arbitration under the License and Development Agreement dated May 19, 1997 between the Company and Maxygen. See Item 1 to Part II -- Legal Proceedings. The cost of defending such arbitration could be quite substantial and could greatly and adversely effect the Company's projections for working capital. In addition, the uncertainty surrounding the outcome of the arbitration as well as the delay in bringing such matter to conclusion could materially adversely affect the Company's ability to secure additional capital on a timely basis or at all. Further, should the arbitrator's decision be adverse to the Company, the business of the Company would be materially adversely affected." see Liquidity and Capital resources 10kwizard.com