Finjan Holdings Inc (FNJN)

[lbcb123]

The negative litigation event is pretty much moot now. The preferred share agreement was before the post-trial motions were dealt with. Many times a judgment is reduced during this process. The negative litigation event from the agreement was if the initial $39.5M judgment was reduced by more than 50% on appeal or if it was believed Blue Coat was unable to pay at least 50% of the initial amount. The entire judgment survived (actually increased with both pre-trial and post-trial interest granted) and subsequently Blue Coat has posted a bond of over $40M to guarantee payment if they lose the appeal.

There was also a "negative treasury event" in the agreement which was if Finjan's cash dropped below $2.5M for a 30 consecutive day period. This shouldn't happen with current cash plus scheduled payments. Finjan can always accept less than ideal licensing deals if they need cash, but so far they have been able to hold firm and litigate against whoever won't do a fair licensing agreement. Look for at least one of those $7M - $10M range licensing deals in the next week or two (if not day or two) and more next quarter.

IMO, the only reason they haven't done a PR for the new filing against F5 Networks is they finalized a license deal and as soon as the paperwork is done they want to announce more incoming cash before announcing another litigation event. The presentation in a little over an hour should be interesting!