Recent

% | $
Quotes you view appear here for quick access.

CryoLife Inc. Message Board

  • tkb72ct tkb72ct Jun 4, 2010 5:39 PM Flag

    Today's Legal News on Cryolife vs. Mefafor

    EX-99.1 2 cryolife8k60410ex99.htm ORDER
    EXHIBIT 99.1


    UNITED STATES DISTRICT COURT
    NORTHERN DISTRICT OF GEORGIA
    ATLANTA DIVISION

    CRYOLIFE, INC.,

    :


    :


    Plaintiff,

    :

    CIVIL ACTION

    :


    v.

    :

    NO. 1:09-CV-1150-CAP

    :

    MEDAFOR, INC.,

    :


    :


    Defendant.

    :


    O R D E R

    This matter is before the court on the plaintiff’s emergency motion for preliminary injunction [Doc. No. 66]. In the response brief, the defendant states that the plaintiff should be required to post a bond under Federal Rule of Civil Procedure 65(c); the defendant then requests a bond in the range of fourteen to forty million dollars. The plaintiff contends that it should not be required to post a bond because an injunction will not harm Medafor. This court will require a bond before issuance of a preliminary injunction. The only issue is as to the amount. The court ORDERS the parties to submit proposed amounts for the bond within seven days of the docketing of this order. The court is considering a bond in the range of $100,000 to $500,000.

    SO ORDERED, this 4th day of June, 2010.

    SortNewest  |  Oldest  |  Most Replied Expand all replies
    • Medafor gave CRY a very broad contract and then realized it and tried to sell more product by trying to sell around the contract. Fairly straight forward.

    • Have you ever considered the possibility that Medafor decided the contract with Cryolife was too restrictive and that led them to quit honoring it?

    • talking about after 2014??

      WOW!

      There are millions of possibilities.

      BTW, Do you know what is going to happen tomorrow??


      BTW, according to Nostrodomus we all are going to die in 2012. So Peace.

    • dlhild@ymail.com dlhild Jun 6, 2010 4:23 PM Flag

      CRY wants to outright own Medafor. Hence, CRY started this litigation, because they hope to force Medafor shareholders to sell to them because of liquidity issues. CRY is the one not following the contract. They are using this as another technique to impact Medafor's cash flow. Medafor would gladly follow the contract, but that does not fit with CRY's takeover tactics. Think about it logically. If you were the big bully, and you wanted to beat up (takeover) the little kid, would you follow the contract if you thought that it may impact Medafor's cash flow to the point where the shareholder's would then have to sell to you. No, CRY is the dirty rotten apple here, and they are using a whole series of disruptive techniques. Medafor would be glad to follow the contract, but that is not CRY's takeover game plan. Medafor is way to small to be stupid enough to pick this fight just for the fun of it. CRY is playing a passive agressive role. Talk nice, but be a mean rotten SOB where the rubber meets the road.

      According to my projections, which are based simply on junior high math, I think CRY is projecting HemoStase sales roughly in the range of the following numbers. 2010 sales of around $10-$12 million. 2011 sales around $22 million. 2012 sales around $34 million. 2013 sales around $45. Cry sees so much value in Medafor, that they are absolutely determined to take over Medafor. Medafor, on the other hand, is absolutely determined to stay independent...unless a FVM offer was made.

      Bottomline: CRY is the contract breaker here, because it is their tradegy...this puts it in plain English.

      If CRY doesn't acquire Medafor, their sales will fall off a cliff in 2014 forward, because as of may 2014, they can no longer sell HemoStase.

      This is going to go from bad now to much worse, because CRY is trying to win via a damage your takeover targets cash flow by any means possible. Also, at least presently, CRY does not think that any damage award would be that great, but that could chage dramatically too.

      When comments were made about the size of the bond that Medafor requested, take 30% times the above sales, and the high dollar bond request may staart to make some sense.

    • Medafor sounds a little crazy with the amount of bond that they wanted Cryolife to post from 14M to 40M. Judge said parties are to come to an agreement on the bond in the range of 100 to 500 thousand.

 
CRY
14.57+0.28(+1.96%)Jul 29 4:02 PMEDT