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Biotech / Medical : Biotransplant(BTRN) -- Ignore unavailable to you. Want to Upgrade?

To: Spekulatius who wrote (865)	3/26/2001 3:01:12 PM
From: Mark Bong	Respond to of 1475

The burn rate will be increased. But the estimated cost to develop and commercialize the first Eligix product is only $4.0 MM, so there is some hope that revenues will begin later this year that will offset the cash burn. The LTD of $22MM is ELIGIX preferred stock. The value of this is included in the purchase price, so there is no dilution here, as for as I can see. Eligix will make best efforts to convert all of the preferred into common prior to the closing of this transaction, and if they don't then certain formula adjustments are made part of the transaction to keep the cost level at 6.6MM exchange shares to BTRN. IMHO, long term debt is not an issue here, but of course cash burn is a big issue. If BTRN is correct about this technology, they this will be a beneficial deal. If not, then BTRN is in big trouble.

To: Spekulatius who wrote (865)	3/27/2001 10:45:24 PM
From: Biomaven	Respond to of 1475

Looks to me like they are projecting fairly significant Eligix revenues in the 2002/3 time frame. From the merger document: Lazard compared, among other things, the transaction value of the selected precedent transaction as a multiple of revenues: LOW MEAN MEDIAN HIGH -------- -------- -------- -------- Transaction value as a multiple of: LTM revenues..................................... 3.78x 8.38x 8.21x 14.04x FY+1 revenues.................................... 3.71 6.45 7.12 8.80 FY+2 revenues.................................... 3.42 5.64 6.24 7.55 FY+3 revenues.................................... 2.74 3.77 3.76 5.09 43 Based on the mid case scenario and 2002E and 2003E revenue multiples, the range of multiples from precedent transactions produces a range of implied equity values of $185 million to $247 million and $152 million to $202 million, respectively, for Eligix. Based on the low case scenario and 2002E and 2003E revenue multiples, the range of multiples from precedent transactions produces a range of implied equity values of $98 million to $130 million and $87 million to $116 million, respectively, for Eligix, compared to an implied offer price for Eligix of $59 million in the merger. Note that Lazard collects $1m for their efforts if the merger is consumated, so they had some incentive to make sure the numbers came out right. <g> Peter