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Biotech / Medical : HEMASURE (HMSR) - Buyout in the works? -- Ignore unavailable to you. Want to Upgrade?

To: hcm1943 who wrote (24)	12/1/1997 2:35:00 PM
From: hcm1943	Read Replies (1) \| Respond to of 88

excerpt from 10q. My understanding is that HMSR will convert this debt to equity in Jan and that will remove 8.5 million in liabilities I would atribute weakness to : tax selling, Smith B pulling coverage and a general lack of understanding of the company. In January 1997, the Company entered into a Restructuring Agreement of the debt related to its acquisition of Novo Nordisk's plasma products unit. Pursuant to the Restructuring Agreement, approximately $23,000,000 of indebtedness owed to Novo Nordisk was restructured by way of issuance by HemaSure to Novo Nordisk of a 12% convertible subordinated promissory note in the principal amount of $11,700,000, which is due and payable on December 31, 2001, with interest payable quarterly (provided that up to $3,000,000 may be forgiven in certain circumstances). Approximately $8,500,000 of the reduction of such indebtedness was forgiven. The remainder of the reduction represents a net amount due from Novo Nordisk to HemaSure related to various service arrangements between the two companies. The amount included in the balance sheet at September 30, 1997 and December 31, 1996 includes the effect of the Restructuring Agreement net of the $3,000,000 contingency amount to reflect the most probable result of the Company's decision to exit the plasma business. All amounts outstanding under such note are convertible by either party, commencing January 1998, into shares of common stock, par value $.01 per share, of HemaSure ("Common Stock") at a conversion price equal to $10.50 per share.