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Biotech / Medical : Elan Corporation, plc (ELN) -- Ignore unavailable to you. Want to Upgrade?

To: scaram(o)uche who wrote (3743)	12/18/2002 5:58:58 PM
From: Icebrg	Read Replies (3) \| Respond to of 10345

Glycogenesys Thanks Rick. The filing reads as follows: On December 18, 2002, GlycoGenesys, Inc. ("GlycoGenesys") entered into a termination agreement with Elan International Services, Ltd. ("EIS"), Elan Corporation, plc. (together with EIS, "Elan"), and SafeScience Newco, Ltd. ("SafeScience Newco") for the termination of Elan's and GlycoGenesys' joint venture, SafeScience Newco. Pursuant to the termination agreement, GlycoGenesys acquired all of Elan's interest in the SafeScience Newco in exchange for a royalty interest on certain future revenues related to GCS-100. GlycoGenesys regained all intellectual property, development and marketing rights to GCS-100. GlycoGenesys now owns 100% of SafeScience Newco. In addition, GlycoGenesys received approximately $1.9 million for reimbursement of R&D expenditures relating to GCS-100 and issued Elan 1,176.47059 shares of GlycoGenesys' Series B convertible preferred stock, convertible into GlycoGenesys common stock at $1.70 per share. In connection with the joint venture termination, the exchange feature of GlycoGenesys' Series A preferred stock, which allowed Elan to convert its Series A preferred stock into an additional 30% interest in SafeScience Newco, was cancelled. GlycoGenesys Series A preferred stock is now only convertible into GlycoGenesys common stock at $2.43 a share, as the mandatory redemption feature was also cancelled. As a result of the cancellation of the exchange feature, GlycoGenesys expects to reclassify its Series A preferred stock into permanent equity, which it believes would increase its equity by approximately $13.1 million. In addition, GlycoGenesys issued 1,209.07035 shares of Series A preferred stock to Elan and mandatory dividends on the Series A preferred stock were cancelled. GLGS has about 37 mio. shares outstanding and a market cap. of abt 12 mUSD to put the above figures in some perspective.