Wright Medical Group, Inc. CVR (WMGIZ)

[Enterprising Investor]

WMGIZ is a Contingent Value Right

CVRs are given to shareholders as an additional benefit if a specified event occurs. A CVR is similar to an option. The payoff is contingent.

WMI acquired Biomimetic.The CVRs were provided to shareholders as a "sweetner".

The payoff for WMGIZ is two fold: (1) FDA approval of Augment® Bone Graft ($3.50) and (2) payment streams from sales revenue ($1.50 per share upon the achievement of $40 million in trailing twelve month sales for all products contributed by Biomimetic and $1.50 per share upon the achievement of $70 million in trailing twelve month sales for all products contributed by Biomimetic).