Opinion ID: 2180498
Heading Depth: 2
Heading Rank: 4

Heading: Crescent's Letter of Intent

Text: On April 24, 2001, Cirrus and CHCL, on behalf of Crescent, executed a non-binding letter of intent (the CHCL LOI) memorializing the negotiations between the two companies. CHCL agreed to invest $77.5 million in cash into Cirrus in exchange for 61% of Cirrus's outstanding shares on a fully diluted basis (i.e., $68.9 million directly to Cirrus for 54.2% of the outstanding shares and $8.6 million to Cirrus's shareholders for an additional 6.8%). If the parties did not reach an agreement by May 21, 2001, the CHCL LOI was terminable by either party. The CHCL LOI also contained both confidentiality provisions and prohibitions against Cirrus engaging in the solicitation, discussion or negotiation of competing proposals.