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Biotech / Medical : New Brunswick Scientific Co., Inc. (NBSC) -- Ignore unavailable to you. Want to Upgrade?

To: scaram(o)uche who wrote (613)	1/23/2003 10:41:47 AM
From: Jorgen Jensen	Read Replies (1) \| Respond to of 724

Rick, here are the details about the bridge loan: On September 27, 2002, the Company and BankInvest, DGI’s two major shareholders, provided DGI with a bridge loan in order to sustain its operations until DGI’s anticipated closing of a financing transaction with an investment group, which DGI management has informed the Company that it expects to be consummated before December 31, 2002. The Company made the loan solely as a means of allowing DGI more time to complete its financing. The Company had no obligation to make this loan and has no obligation to provide any future financing or support to DGI. However, should the anticipated round of financing be consummated, the Company expects to receive shares in DGI in lieu of future rent payments. As compensation for making the loans, the Company and BankInvest will each receiveSeries B Convertible Preferred shares in DGI in proportion to their respective share of the loan. Consequently, the Company’s ownership interest in DGI at September 30, 2002 was reduced from 47.0% to 41.3%. The $150,000 portion advanced to DGI by the Company has been expensed as a charge to equity in operations of DGI due to the uncertainty surrounding DGI’s ability to consummate the equity financing and the resulting uncertainty as to the ability of DGI to repay the loan, absent the age 10 procurement of financing. Under the terms of the loan agreement, should the financing be consummated, the Company will be repaid in full from the proceeds. Such repayment would then be recorded as income from equity in operations of DGI in the Company’s consolidated statement of operations. In the event DGI is unable to obtain additional financing, the Company may be required to fund up to $152,000 related to DGI equipment leases guaranteed by the Company when DGI was majority-owned.