SIGA Technologies Engages PiperJaffray as Financial Advisor
... it has engaged PiperJaffray & Co. as a financial advisor in connection with satisfying the judgment awarded on January 15, 2015 to PharmAthene, Inc. by the Delaware Court of Chancery. The judgment, including interest, is approximately $208 million.
* Piper Jaffray operates principally through four business segments:
Mergers and acquisitions advisory
Public equity offerings
Debt and equity offerings
(Note that SIGA's recent 10K reported over $200M in legal fees during the 2-yr period 2014-15 alone for legal fees -- which amount obviously could have been used instead to reach a settlement with PIP much earlier during this 10-yr litigation.)
Follow that money and see who's bank account the money finally end up end? Wall Street slime rearing it's ugly head as usual. Would love to see Lane slap Siga with and end the game penalty for (more) bad faith, Siga shareholders should be outraged.
Is the market thinking "Bad Faith", is there another trick up Siga's sleeve? My wild guess, cash is king and Siga is trying for a settlement where they keep as much cash upfront. And, Pharmathene is offered a bigger settlement if it accepts future cash flow as part of settlement?
The accountants are looking at such things as saving a $100M in tax savings that come with a more complicated deal. Otherwise the two companies will pay twice on taxes followed by a third tax shareholders will pay.
Basically agree with you on Option 3 it's complicated, and genuine negotiating is going on.
40% is what ambulance chasers get paid, personal injury or workers' compensation. Pull your bid if you are trying to collect shares. The Pharmathene stock god is always intent on walking the price down when this thinly traded stock is not showing bids.
Look at the reorganization move Pharmathene made. The boys don't pay out million dollar salaries to anyone. It's turned very shareholder friendly, to an extreme I've rarely seen on Wall Street.
PharmAthene’s Reasonable Attorneys’ Fees, Expert Witness Costs and Costs.
A. SIGA is liable to PharmAthene for forty percent (40%) of PharmAthene’s reasonable attorneys’ fees between December 20, 2006 and post-trial argument on April 29, 2011, in the amount of $2,028,158.32.
* I'm guessing someone wants to buy a few shares as cheaply as possible. Not sure what the final payout will look like. However, I am sure it will be a very nice percentage gain from here. The stock price is a mystery and I do pick up a few shares on dips. Never getting a fill for my full amount on my low ball bids. I think that says something. Often just 100 shares and a new and higher bid appearing within minutes and never returning to my bid for even a second helping of even 100 shares.
"will distribute at least 90%"
Mr. John M. Gill CPA Chief Exec. Officer, Pres and Director ((58K) (talking low overhead) looks to be set up to return well in excess of 90%. Siga is also as interested in reducing taxes as much as possible and I'm assuming completing the inevitable payout as soon as possible to get rid of the 8.75% interest rate as soon as possible.
Pharmathene getting a larger payout for accepting new Siga stock would surely be incentivized and return more to Pharmathene shareholders with a little more risk?
Siga's attorneys and accountants are looking after the majority owner. Any bad faith in their dealing with Pharmathene will be penalized by Judge Lane.
Investors should understand that existing shares of common stock in a company filing for Chapter 11 usually are cancelled, even if the company emerges and returns to profitability.
Leaving a lot of negotiationing room for Siga and PIP. If Pharmathene is willing to take on some risk the payout could be in the $3.50 plus range.
Has anyone seen a board or management team handle such a situation better? Have a small RAD play going but the management team makes the Siga management pay outs look tame. Are Espouse and the others focusing on where the real problem lays for those hoping for a ROI from Siga shares?
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MPM blood in the water, can't do better than $1.65 smells of serious desperation on their part. Wonder if they have other holdings that are now priced to buy?