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Posted on 10/01/2004 5:27:43 PM PDT by MeneMeneTekelUpharsin
COLUMBUS, Miss., Oct. 1 /PRNewswire-FirstCall/ -- Microtek Medical Holdings, Inc. (Nasdaq: MTMD - News), a leading manufacturer and marketer of infection control products, fluid control products and safety products to healthcare professionals, announced today the signing of an agreement which grants to Eastern Technologies, Inc. ("ETI") a worldwide exclusive license to manufacture, use and sell the Company's OREX materials and processing technology in the nuclear industry, homeland security industry and certain other industrial applications (the "OREX Nuclear Business").
Dan R. Lee, Microtek's President and Chief Executive Officer commented, "The completion of this agreement is a positive development for Microtek and for our shareholders. As we have discussed numerous times, over the long term, the OREX Nuclear Business is not complementary to Microtek's healthcare strategies. Our intention with respect to the OREX Nuclear Business has always been to nurture that business into commercialization, and then, at the appropriate time and when in the best interest of our shareholders, to explore other alternatives. With this licensing agreement, we have done exactly as we promised. We have structured a transaction that separates the OREX Nuclear Business from our healthcare operations, thereby enabling uncompromised focus on our strategic healthcare initiatives and increased transparency on our healthcare results. We have licensed the OREX technology for use in the OREX Nuclear Business to Eastern Technologies which, together with its principals, has led the growth of the OREX Nuclear Business over the last three years."
Mr. Lee continued, "Concurrent with the signing of this license agreement, we have also agreed to support ETI in certain management, procurement and other logistical operations related to the OREX Nuclear Business for a period of three years, all with the purpose of enabling ETI's continuing development of the OREX Nuclear Business. Through guaranteed royalties, management fees and proceeds from the sale of certain equipment and inventories to ETI, we expect to generate cash flows in excess of $10 million over the first three- year period, with the potential for further royalties continuing for the remaining life of the license agreement. We are excited about the prospects of working with ETI and wish them much success as they continue to revolutionize personal protection and material processing offerings to the nuclear industry."
excerpt...rest at link above
Shorts getting burned?...
No. They are so good at what they do, I've NEVER seen a real short squeeze. It doesn't happen. The hedge funds are experts at knowing when to cover and go long. This stock looks very interesting, shorts or no shorts. Wish someone in the Mississippi area would give us a little background.
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Makes sense. Pajamas in bed time for me. Later.
If at first you don't succeed...type, type again.
Looks like the big boys are accumulating on a double bottom. Or, someone is selling big time causing the double bottom. Any chart readers out there? LOL.
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They spun this out because they are terrified of trial lawyers. Health care is bad enough. If anything ever goes wrong with anything "nuclear," the lawyers will make mincemeat out of everyone involved. It's not that big an opportunity; why bet the company?