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Biotech / Medical : PLSIA (Premier Laser Systems) -- Ignore unavailable to you. Want to Upgrade?

To: Sr K who wrote (1493)	2/26/1998 9:38:00 AM
From: John S. Baker	Respond to of 1773

From BusinessWire: > Pursuant to the tender offer, Premier intends to offer, in return for each share of OIS tendered, $1.75 in cash, $0.25 in Premier stock and two warrants, each of which permit the holder to acquire $0.25 worth of stock for a nominal purchase price if OIS meets certain future revenue goals. < That means they had to sweeten the OISI offer a bit -- same amount of cash ($1.75 per share) but with some stock sweeteners, some now and some on OISI-performance contingency. OISI listed as 3.9 million shares outstanding. PLSIA already owned 29.5%, leaving 2,749,500 shares to be acquired at this sweetened price. $5,499,000 in cash, $687,250 in PLSIA stock now (doesn't say what valuation date is used), plus some possible stock dilution in the future, which dilution apparently will depend upon PLSIA's share price at that time. Will have to go back to the recent SEC filings to discover how much PLSIA paid for the first 29% of OISI, but on balance, it appears that this purchase price might have been a bit steep? OISI is listed with sales of $7.64 million, and net loss of $1.71 million -- though the financial figures were showing significant improvement. Anybody else have a take on this deal? Good or bad?