Reply 128687 Honey - your thesis, as it may be isn't wrong. The basis of your hypothesis regarding the BO is flawed. There will be competition for TMDI. Once the loan is payed it doesn't matter if MDT has licensed 14-16 patents. And that's the number for patents as the time of the agreement. So if MDT does extend the agreement, or license more IP - it's up to Mc to drive the $$$$ a lot higher. So long as TMDI owns all of its IP then a competitor can make a bid. That's the equalizer.
Mc is clearly responsible for the fiduciary duty that which his position requires. Now, so does the COB. He clearly was seeking cover for this decision. He's insulated himself and did all of us a great favor to surround himself with professional experience. And that doesn't include any independent valuation analysis.
Hey, this should be familiar. THINK. Any other competitor besides ISRG will make a bid b/c they won't care if MDT has 14-16 patents. Big deal. And I think ISRG will try to drive the share price for the BO higher b/c they can. Wouldn't you make life more difficult for a competitor? No? It's not hard. Buy a few share on the open market and be a full % shareholder, or ask some of the funds that hold ISRG stock to do it. So Wall Street will participate b/c that's why they exist. In fact I would speculate that they already are participating keeping the sp down. Which is THE main reason MDT didn't take a direct position in the $18M raise. If it became public the stock price would soar. B/C it already happened in a previous BO. But I suspect ISRG and Wall Street will make up the sp difference either way before or after the announcement. So the announcement MUST be a done deal prior to the public statement. Is that possible? It will be put to a vote, but the BOD will have the votes to approve. So it really depends on how much pain the competition wishes to inflict on MDT before the final agreement. Don't ask me why it hasn't happened yet. It's a future event based on the final features of ENOS that which are not public - yet.
You're great with numbers, but it would appear a little light on the objectivity to the possibilities of alternate competitive analysis and business strategy.
This will be a negotiation to own highly differentiated IP for the next 20-40 years. Which is exactly what Martha has been stating he and his company will do. And the competition will make it very expensive, but to MDT - affordable. IMO.
Good luck to all. Regards,BK.
