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Microcap & Penny Stocks : Microvision (MVIS) -- Ignore unavailable to you. Want to Upgrade?

To: JDN who wrote (2526)	5/11/1999 12:55:00 PM
From: Obewon	Read Replies (1) \| Respond to of 7720

My take on the deal is that this is a great deal for Cree Research no matter what and SHOULD be a good deal for Microvision PROVIDED that the research effort is quickly successful. Net - Net : Microvision is giving Cree Research an almost 4% stake in the company and about $500K in future development payments for an exclusive 3-year license on any viable blue/green LEDs developed for use in a rather small group of scanning applications. Note that the cash that Microvision is receiving ($4.6M) for the stake is less than the $5.1M in value that Cree is expecting to get back in development payments. Essentially, Microvision is using stock instead of cash (which is always in short supply until the warrants are exercised or a viable product is ready) to fund the research it needs to continue. It will be interesting to see how fast the company is currently burning through the cash it recently received through its two private placements earlier this year. Obewon