Milestone Scientific Inc. (MLSS)

[Ed Ajootian]

Quite a fascinating 8K they filed after the close yesterday. They have signed a definitive agreement to acquire some new injection technology, for 2.2M Euros worth of their stock. The deal will close on 7/10 and the stock price that will be used to calculate the number of MLSS shares that will be issued will be the average price between 6/11 -- 7/10.

It does not appear that there is any future consideration** to be paid for the technology (i.e. future royalties). This makes me think it is some sort of defensive acquisition -- somebody has a better mousetrap out there so let's lock it up so no competitor can exploit it against us.

The timing of the transaction is intriguing as it relates to the current expected timing of them getting the epidural marketing approval from the FDA. Maybe they've already been told by the FDA to expect the approval to get issued during the week of 6/12. Hopefully they also have lined up a US distributor for the epidural instrument that will be announced around the same time as the marketing approval.

It should be an interesting couple of months coming up here for MLSS fans, if nothing else.

** There is a provision where, if the price of MLSS stock is lower than the price that was used in the transaction at a time that is 6 months after the closing, MLSS will have to issue more shares at that time to make up the difference. Hopefully that provision will turn out to be moot since the epidural instrument will hopefully be selling by then.