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DewDiligence

11/06/17 1:00 PM

#17890 RE: DewDiligence #17554

MNTA had 81.5M fully-diluted shares for valuation purposes at 9/30/17—a decrease of 1.1M shares since 6/30/17 (#msg-133589478).

The 81.5M figure consists of: 76.4M basic shares on the 9/30/17 balance sheet (https://www.sec.gov/Archives/edgar/data/1235010/000123501017000040/mnta3q201710-q.htm#sDF67CD42769F594DB196535A3DF935EB ); and 5.1M options and non-vested restricted stock (ibid, page 8).

Note: I use the non-treasury method of calculating diluted shares—i.e., I do not reduce the share count by the cash obtained by the company from future option exercises. The straightforward method of counting all options without adjustment does not require knowledge of the exercises prices and expiration dates of individual options and yet it is sufficiently accurate, IMO, for estimating the number of shares that would need to be cashed out in a buyout at a typical premium.