Short Message--to be considered by the Board of Directors of either company
It should be---Here is the "New Plan" (The current plan is not working).
Siga issues 28,538,000 shares of new Siga stock to Pip shareholders to acquire
all of Pip.---This would result in Siga with 81,539,000 shares outstanding.
Upon consummation of the deal --currently existing Siuga shareholders would receive
a $40,000,000 special dividend distribution (approximately $.75 share on the
current 53,000,000 Siga shares currently outstanding)
This would be in effect 65% of the "new" company owned by Siga shareholders and
35% owned by Pip shareholders----this is what "the market" is currently valuing
both companies with Siga at $3.38 and Pip at $1.78.
All litigation would terminate
Combined company's operations rationalized---operating expenses reduced dramaticaly
"New Siga" an acquisition candidate
New company would have considerable cash on hand after the $40,000,000 dividend
to Siga shareholders.
Most importantly SigaPharma would be freed up from the legal entanglement and would
have the potential to grow rapidly---IMHO Siga stock would jump sharply on the announcement
of a deal like this which would inure to the benefit of the shareholders of both companies.
(the 65%-35% ratio would remain intact and Pip stock would appreciate to keep pace
There are talented members on the Board of Directors of both companies---interestingly,
12 Siga Directors 8 Pip Directors --Very close to the 65% 35% ratio contemplated.
Actually, this ratio could be massaged slightly---perhaps 60% -40%---resultiing in
an adjustment to the breakdown of shares mentioned above---
(a 60%-40% ratio would result in 35,333,000 shares to Pip ---then 88,333,000 total
shares of SigaPharma outstanding. Siga and Pip should be able to negotiate an equitable
split along these lines(No outside attorneys involved!)
The Siga Board would be doing what they are supposed to be trying to do ---enhance shareholder value.
The concept outlined above not likely to happen but I suppose anything
is possible.----Absent an equitable resolution of the litigation, investors in both
Siga and Pip will continue to be held hostage to the vagaries of the legal system---
I think it is fair to say that both stocks would be trading
at considerably higher prices without the litigation, and with an equitable resolution.
Right now, the 65% - 35% ratio outlined above should be the point of focus. (Leave
out the 60%-40% discussion in the second to last paragraph---strike that from the record).
I am not just coming up with 65% - 35%) from "out of the blue"---
That ratio is derived from what the "market" is currently "saying" (anthropomorphism),
what each stock is currently "worth" combined--
Each company currently (by coincidence) has approximately 53 million shares outstanding.
At December 24th closing prices the "market" is "saying" :
Siga @ $3.37---Pip @ $1.78 Total $5.15
$3.37 approximately 65% of $5.15 ------ $1.78 approximately 35% of $5.15
The only element in my proposal outlined above different than "what the
market is saying" is the suggested $.75 special dividend paid out to the Siga shareholders
That from the current Judge Parson's decision that the first $40,000,000 of profits
stays with Siga--
It is of course entirely possible, perhaps even probable that valuing Siga and Pip
the market is not efficient--- when the litigation is finally over, one company will come out
considerably better, and one considerably worse, than what the "market is currently saying".
Which one better? Which one worse?
There NEVER will be a deal with POOP!
Or there would have been one long ago!
THE CURE will be the nucleus of ANOTHER RP philanthropy.
Why is that so difficult to comprehend?
Without Murtha, products, revenue, grants, gains, POOP=POOP!
Sentiment: Strong Buy