Parascript Mitek

The proxy statement has been posted online. In 2005, the combined company had some $30.4 million in revenue ($24 million of which can be attributed to Parascript's operations) with an operating income of $5.6 million, which was negated by $11.5 million in interest expense. The deal is supposed to close sometime early next year. From the best we can tell, the deal values the combined company at somewhere north of $140 million. This is based on investor Plainfield OffShore Holdings receiving 23% of the company in exchange a $35 million investment in 21.9 million shares of Mitek common stock at a conversion price of $1.60 per shares. Of course, Plainfield also get $55 million in senior secured debt in the terms of the deal, so while that number of shares may have a $140 million valuation to Plainfeld, it probably does not truly relfect the open market valuation of the combined company, which will be known as Parascript. Does that make sense?

Ralph