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Biotech / Medical : Depotech(depo) -- Ignore unavailable to you. Want to Upgrade?

To: Dr. John M. de Castro who wrote (852)	10/20/1998 1:34:00 PM
From: rkrw	Respond to of 887

John, IMO the deal is the best they could get under the circumstances or at least not bad given their condition. Budget is now a shoe-string. Cash, any way you look at it was running thin. They are also in non-compliance with their debt covenants, hence the cash and book value you cite may be faulty. So given the circumstances, a deal with Skye may well be the best alternative regardless of how poor the terms look to you. The company is a mess and its naive to believe they could so easily dig themselves out of this mess and get better terms down the road. If you take a moment to look into Skye you will find a company that appears to have a lot going for them. Given the hole DEPO dug for themselves and in looking at the terms, it is my opinion that Skye did DEPO a favor in taking them, hopefully it will work out for both parties.