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CryoLife Inc. Message Board

  • wiz3dfx wiz3dfx Feb 10, 2010 10:25 PM Flag

    Medafor Shareholders will

    have a decision to make. It is clear that Medafor management wants to hang on to their jobs. The $40M offer is a high multiple on revenue. $13M in Revenue?

    What are Medafor's actual earnings in 2009? What's the $40M offer a multiple on bottomline earnings?

    I'm starting to think that $40M is too much to pay for this thing.
    And when Medafor goes to VC's for more money and take a majority share of the company for $10M and Medafor's management takes the deal to keep their jobs---then Medafor's shareholders may wake up but it will be too late.

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    • dlhild Feb 12, 2010 8:12 PM Flag

      You have a profound lack of knowledge about Medafor, their cash position, their cash flows, their revenue projections etc. The Medafor model, once you understand it, is just the putting together of a couple simple formulas. So simple. It would be better for SGA and GS to become functional. Then everyone would win. But understand this. Medafor already has the cash flow to both grow sales and to litigate if necessary. However, I do wish both SGA and GS would work out their differences. If the relationship were to be functional, I would have no problem with the contract continuing beyond 6 years. If is never becomes functional, we litigate for 3-4 years, and then dump CRY. One year of damages would not mean much to Medafor in terms of damages at that point. I've met GS,and he is a driven saleperson and is as honest as the day is long. I suspect that SGA and GS, in the right setting could create a win-win situation for both companies. However, if I have to fight though, it will be in defense of GS and GT. I would prefer to get along though.

    • The shareholders to not have any decision to make until and unless CryoLife makes a tender offer or they start a proxy fight.

      The CEO is the only management member of the Board of Directors and the true issue is that the price is considered to be too low and an unspecified portion of the payment is to be in CryoLife stock.

      • 1 Reply to mister_bobblehead
      • you see, the issue is Medafor is refusing to negotiate. They aren't sitting down with CRY and it is because per their communications the CEO doesn't seem to even consider a deal for the Medafor shareholders, nor are the directors.

        Shareholders won't like that and will question the fiduciary duties.

        And aside from that, there will be significant shareholder issues surrounding any future capital activities that further dilute Medafor shares.

        So, let's all see what happens. It will be interesting.

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