Micro Imaging Technology Inc (MMTC)

[StrengthenNumbers]

"What if...they have a potential buyout?"





You have touched on one of the many reasons I want to see the details of the deal with Epic. Given that they are acting as a dealer network and securing the distribution deal with capital, I would be very surprised if they didn't address such contingencies in the agreement. The specifics regarding such an arrangement may give Epic the first right to counter any offer received, or Epic's agreement may be part & parcel to the near-term of MMTC, i.e. any suitor takes on Epic's portion of the contract or buys them out as part of the acquisition.

Pure speculation, but any such details may be crucial to the possibility of a lucrative buyout offer. Keep in mind that this is a wealthy sector at a time when corporate coffers are flush with cash, and there are plenty of heavy hitters in the healthcare blue-chips that retain M&A counsel for acquiring promising enterprises. Consolidation of the operational emergent biomed into big pharma large-caps is a trend that isn't slowing down despite the economy.

It would be shortsighted for MMTC management to wrangle any deal with Epic without inclusion of clear provisions for a buyout scenario. Given the inside ownership, there is most likely a clause that makes things sweet for both MMTC and Epic if an Abbott or J&J want to scoop up this action.

And who could blame them? This technology will generate a lot of revenue. I could be tempted to vote for a buyout @ +$3.50 USD.