Mereo Biopharma Share Discussion Threads

[chap1889] 21/8/2006 12:02

It is the maximum consideration payable for the 51% stake, not for 100%.

"The implication is that they have paid £688k for the initial 51%, which of course gives them control of the brand, with nothing payable for another three years, the maximum earn out being a further £662k, but based on earn-out/performance."

There is no implication they have paid £688k for the initial 51%. They are paying up to #1.35m for the 51%, with no split as to how much has already been paid in initial consideration and how much is potentially outstanding as earn-out. There is no mention of whether there is any option to acquire the remaining 49% later, but this RNS does not cover that at all. Your 51/49 split between the initial consideration and earn-out is not mentioned in the RNS.

[edit: sorry - not sure what I was reading this morning now!]

[lord buffett] 21/8/2006 11:59

chap1889

"The maximum aggregate consideration for the acquisition will not exceed #1.35 million."

It seems perfectly clear english to me; why use either of the words 'maximum' or 'aggregate' if it were referring to anything but the whole?

[chap1889] 21/8/2006 11:53

LB - I don't think your interpretation of the RNS is correct, but I do think it is a very poor RNS!

They are paying up to #1.35m for 51%. It does not show the split between initial consideration and the earn-out (and therefore it doesn't show the amount of cash already paid this year). The split between initial and earn-out is not 51/49.

[tuftymatt] 21/8/2006 11:53

Well I have to say that on the face of it todays bit of business looks to be very good.

Should be able to earn a few quid on the back of it and help out with the loss of YSL.

I do feel that it is the YSL deal, or lack of it soon, that is holding MPH back and IMHO will continue to do so.

Don't all start saying about the future with Ungaro etc as I know all that but am just saying what I see.

Good luck to all holders.

[lord buffett] 21/8/2006 11:44

From the aquisition announcement:

"Marchpole has acquired an initial 51 per cent interest in Homebody with the
remaining 49 per cent being acquired after three years based on an earn out
formula. The maximum aggregate consideration for the acquisition will not exceed #1.35 million. The initial consideration will be satisfied in cash from the Company's existing resources and the final consideration will be satisfied in Marchpole shares, cash or a combination of the two at Marchpole's discretion."

The implication is that they have paid £688k for the initial 51%, which of course gives them control of the brand, with nothing payable for another three years, the maximum earn out being a further £662k, but based on earn-out/performance.

[lord buffett] 21/8/2006 11:25

From Hommebody's website:

This bit explains the, on the face of it, unusual name:

"In 1998, Hommebody was launched as a menswear collection. It sold out immediately and the demand became apparaent for a women's wear range.

As a result of Selfridges opening its new lifestyle area, Hommebody Woman was born, and has since gone from strength to strength."

...and this fits in well with Hommebody's and Marchpole's mutual ambitions:

"With the opening of key new department store accounts, such as House of Fraser, Hommebody is planning for international expansion and the US market beckons..."

...and this is potentially very interesting:

"Feel

Our fabric has been developed to have the touch of Cashmere and the flexibility of Lycra.

Jog from sport to couture in a moment with a material that has been disciplined to twist, drape and mould around the body.

With a background in sculpture, designer Beverley Calvert creates innovative shapes with this proprietary fabric."




I must say I had already observed the nice way the fabric hung before I read that bit about 'feel', so a proprietary fabric which hangs well/looks great plus [apparently] feels great to wear is potentially a very interesting proposition - and may account for the quality/luxury look and feel of the clothing.

[cr4zyness] 21/8/2006 10:50

momentos LOL LOL

[momentos] 21/8/2006 10:30

The dictionary has also been amended to record the fact that "imminent" means a period of 54 days....

[momentos] 21/8/2006 10:18

Very nice.



Seem a bit confused whether the are called Homebody or Hommebody!

I am sure sommebody will know....

[chap1889] 21/8/2006 08:20

Max aggregate consideration #1.35m but it doesn't seem to say how much has been paid in initial consideration (cash) i.e. how much has the cash balance been hit in this current year.

It also doesn't provide any figures for Homebuy. What are they paying #1.35m for?

[cosnova] 21/8/2006 08:12

Can't help thinking this good news is just the tip of the iceberg, keep holding

[lex1000] 21/8/2006 07:46

Hooray!............. agreement will be signed imminently.........in 8 weeks time! Patience is all that is required with MPH.

[cr4zyness] 21/8/2006 07:36

Lovely about time!!!

[daza70] 21/8/2006 07:26

patience , patience! The news is out now lets see what todays trading brings!

[tuftymatt] 18/8/2006 21:58

ARGY2,

That was way back in early 2005 I think. Not long before the Express did the big bit of damage in April.

[argy2] 18/8/2006 17:20

According to my source there is more mud to fly over the OB debacle...hopefully it won't make the press. On the subject anyone remember when the Mail on Sunday had a real 'down' on Michael Morris?

[lex1000] 18/8/2006 17:02

Drifting on no news.We have a seller.Second consequetive day,end of day "T" trade 100K sell @ 20p and up for grabs @ 20.5p on monday. Trading update statement and confirmation of ME licensing must be soon,surely? Creeping towards being notified outcome settlement of OB debacle.Patience.

[cosnova] 18/8/2006 16:17

the 136k looks like a buy, and they have reduced the offer, the mm's will get the thumb screws out next week!

[uncleoswald] 18/8/2006 15:54

At the final results in June, a deal with several Middle East countries was imminent!
2 months on and still no mention.
Anyone heard anything?

[lex1000] 16/8/2006 22:10

Ex-dividend today. Lots of excitement elsewhere but could be worse look at Oxus for instance.All that investment,hard work and license "allegedly" nicked by other governments. Marchpole treading water & volatility free.Rest assured share price will take off at sometime when least expected.aimho.