This article was originally published in The Gray Sheet
Executive SummaryComplete $4.5 mil. "sale-and-leaseback" financing arrangement under which Scherer obtains rights to Marquest's ABG blood gas analysis product line; Scherer is licensing the rights back to Marquest ("The Gray Sheet" April 26, p. 16). Under the previously announced financing agreement, the firms also collaborated to complete an exchange offer for approximately 90% of Marquest's $12.7 mil. in defaulted Swiss bonds. Approximately 4,000 shares of Scherer 5% convertible preferred stock, $2.7 mil. of Marquest six-year 8% notes, and Marquest warrants for 1.4 mil. common shares will be issued in exchange for the tendered bonds. In conjunction with the transaction, Scherer received warrants for 6.6 mil. shares of Marquest common stock, exercisable at 75 cents per share. "At Scherer's option, either cash or Scherer common stock can be used in exercising the warrants," according to a joint June 17 press release.
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