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was a programmable chip company. Mathstarr was founded in Minnesotza by serial entrepreneurDoug Pihl. It moved to Orego in 2006. Details of the proposed mergerd have notbeen reached. Also Wednesday, the company announced the resignationj ofCEO Pihl. In a resignation letter filef withthe U.S. Securities and Exchange Pihl said he’s disappointef by the proposed mergerwith Sajan. He preferrec to restart the company by developing videpencoding technology. Also in his resignation Pihl said the Sajan deal involves funnelintg morethan $13 millionn in cash to Sajan, “nearly half of will be distributed to Sajan shareholders.
The proposed deal woul d also dilute the value ofMathStar shares, according to Pihl. In Pihl’xs absence, MathStar’s board has formed a special committee of itsindependen directors, Richard C. Perkins and Bennl G. Sand, to hammer out a deal with Sajan. LLC is MathStar’x investment banker. Several groups have urged the companuy to liquidate because of its lack of a marketabl e productand $12.9 million in cash reserves. MathStar shareholders rejectedr a proposal to liquidate onJuly 10. Shareholders must stil decide whether to tender shares to the Chicagp investmentfund LLC, which has offered to buy all of the company’ws outstanding shares for $1.25 per share.
Tiberiue must purchase at least 3 million shares beforre the other conditions of the tender become operative. The company’s cash reserves work out to roughlt $1.40 per share. Tiberius Capital says the liquidation valuseis $1.28 per share. MathStar’s board doesn’t want shareholdersd to tender shares, saying the offer would preven the company from using the tax advantages ofits $140 milliom net operating loss. Tiberius has not revealexd its plans for the companuy should it acquire acontrolling interest. Shares were up less than 2 percentr in early afternoon trading to They havea 52-week range betweemn 63 cents and $1.46.
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