There is a rather sizeable lockup that is set to expire November 1st. The founding families of EZ-EM have not given clear indication yet that they intend to hold their stock and one of the family heads has passed away. I just think that is going to be an overhang on the stock price until at least after November 1st when the lockup expires.
I would like to know about the pending lawsuit too. The company said that they had some exposure but that they think they can keep manufacturing even if they lose. What does that mean? Have they negotiated a royalty agreement in the event that they are found to have infringed the patent?
Can I ask where you got your info. I read EZEM's most recent 10K and it states that EZEM distributed all it's remaining shares of ANGO to stock holders of record in feb 2004. Here's the part of EZEM's 10K that mentions ANGO.
Prior to our spin-off of AngioDynamics on October 30, 2004, we were also a provider of innovative medical devices used in minimally invasive, image-guided procedures to treat peripheral vascular disease, or PVD. AngioDynamics designed, developed, manufactured and marketed a broad line of therapeutic and diagnostic devices that enabled interventional physicians (interventional radiologists, vascular surgeons and others) to treat PVD and other non-coronary diseases.
AngioDynamics Initial Public Offering
On May 27, 2004, AngioDynamics, our former subsidiary, sold 1,950,000 shares of its common stock at $11.00 per share through an initial public offering ("IPO"). Proceeds of $19,949,000 from the IPO, net of certain financing costs, were received by AngioDynamics on June 2, 2004. At May 29, 2004, we owned 9,200,000 shares or 82.5% of the 11,150,000 shares outstanding. On June 15, 2004, the underwriters of the IPO exercised their over-allotment option and acquired 292,500 shares at $11.00 per share, less underwriting discounts and commissions, and on June 18, 2004, AngioDynamics received net proceeds of $2,992,000. At June 15, 2004, our ownership interest in AngioDynamics decreased to 80.4%.
In February 2004, we received a favorable private letter ruling from the Internal Revenue Service regarding the tax-free treatment of the distribution of our remaining ownership in AngioDynamics. On October 30, 2004, we made a tax-free, pro rata distribution of our 9,200,000 shares of AngioDynamics common stock to our shareholders of record as of October 11, 2004 (the "Record Date"). Based on the shares outstanding of each company on the Record Date, our shareholders received .856377 of a share of AngioDynamics stock for each share of E-Z-EM stock they owned on the Record Date. For all periods presented, AngioDynamics is accounted for as a discontinued operation in our financial statements in accordance with SFAS No. 144, "Accounting for Impairment and Disposal of Long-Lived Assets."