Scherer/Marquest
This article was originally published in The Gray Sheet
Executive Summary
Enter into a definitive agreement under which Scherer will provide up to $4.5 mil. in financing to Marquest and will guarantee up to an additional $3 mil. for working capital. Marquest will use the $4.5 mil. for capital additions, to pay off short-term credit and for operating expenses. The firms also will work to refinance Marquest's defaulted Swiss bonds, which amount to about $12.6 mil. The definitive deal's terms are different from those of a March 17 revised agreement in principle ("The Gray Sheet" March 22, p. 21). The March pact would have provided $4.5 mil. in financing, as well as $4.5 mil. through a guarantee of proposed mortgage debt. In conjunction with the agreement's transactions, Scherer may acquire up to about 65% of Marquest common stock and will be able to name the majority of Marquest's board members. Scherer also obtains rights to Marquest's ABG blood gas analysis product line, which it will license back to Marquest. Marquest will have a three-year right to repurchase the product line.