From the FEB 1 PR:
The Company, in conjunction with William Blair & Company, the Company's financial advisor, continues to evaluate a variety of possible senior and subordinated debt and equity financing alternatives. The process is ongoing.
Separately, the Company received a non-binding indication of interest with a view toward entering into a definitive acquisition transaction for the entire firm.
The non-binding indication of interest sets the enterprise value of LECG at $104 million, on a cash free, debt free basis. This implies a value of up to $1 for each outstanding share of common stock after repayment of the Company's existing debt and redemption of the Company's Series A Convertible Redeemable Preferred Stock. Under the terms of the transaction contemplated by the indication of interest, any additional indebtedness incurred by the Company before the closing of the transaction will reduce the implied value of common stock in the transaction. The Company may incur such additional indebtedness to fund operations in the coming periods.
The Company's board of directors has evaluated the indication of interest and has authorized the Company to negotiate definitive documentation with the party on the terms currently reflected in the indication of interest.
There is no assurance that the Company will enter into a binding acquisition agreement with the party or that the terms of such agreement will reflect the terms in the indication of interes
