Approximately one week ago, Medafor sent a letter to its shareholders disclosing additional information regarding the CryoLife offer including details of the Board of Director’s unanimous rejection of the CryoLife bid. “Grossly Inadequate” was the board’s answer to CryoLife’s $2 per share cash and stock bid. To start with, said Medafor’s board, the supply contract with CryoLife is valued between $40 million to $50 million so why accept, in effect, $40 million now? Next, sales to CryoLife account for only 20% of Medafor’s sales, so selling the whole company for $2 per share seems patently ridiculous. Finally, and this is the coup-de-grace, of those sales to CryoLife, Medafor’s own sales organization generated $5.1 million of CryoLife’s reported $6 million in sales. In other words, Medafor’s own sales force accounted for 85% of CryoLife’s reported MPH product sales. As of last week, only five of Medafor’s 550 shareholders have accepted CryoLife’s $2/share offer. CryoLife has sent several letters to Medafor’s shareholders and this week repeated its offer on the conference call with analysts. Less than 1% of Medafor’s shareholders have accepted it despite the direct solicitations and implied threats. The five shareholders who tendered their shares to CryoLife for $2/share represent 11% of Medafor’s shares outstanding. After reading Medafor’s letter to CryoLife, those five shareholders may want to ask for their shares back.