Magna Extends Debt Payment, Maryland Jockey Club Slashes Fall Stakes Schedule
The Maryland Jockey Club (MJC) and Maryland Thoroughbred Horsemen’s Association have agreed to slash the stakes schedule, including the Grade I Frank J. De Francis Dash, for the 2008 fall racing campaign at Laurel Park as the industry faces a shortfall in the purse account by the end of the calendar year.

The only stakes races on the calendar will be state-bred or state sired stakes, headlined by the 23rd running of the Maryland Million on Saturday, Oct. 4.

“This is terribly disappointing but these are serious times,” said Tom Chuckas, president and COO of the MJC. “We remain hopeful that the playing field between Maryland and our neighbors to the west, north and east will be leveled and that we will be able to resume running this prominent race in the future.”

Magna Entertainment Corp. (MEC), which owns Laurel Park and Pimlico Race Course, also announced in August that it has again amended several financing agreements. This includes extending the maturity date of a $40 million line of credit with a Canadian chartered bank from Aug. 15 to Sept. 15, 2008; extending the maturity date of a bridge loan with a subsidiary of MI Developments, MEC’s controlling shareholder, from Aug. 31 to Sept. 30, 2008; and extending the due date of its $100 million repayment requirement under the Gulfstream Park project financing with the MID Lender from Aug. 31 to Sept. 30, 2008, during which time any repayments will not be subject to a make-whole payment.

According to a company release, MEC incurred a fee of $0.4 million in connection with the extension of the senior bank facility and a fee of $0.5 million in connection with the extension of the bridge loan.

State PSC Initiates Proceeding to Address Possible Electricity Shortfalls
The Maryland Public Service Commission (PSC) has issued an order to begin the process of determining whether the PSC might direct Maryland’s investor-owned utilities to obtain additional electricity for the years 2011–12 and possibly beyond.
 
In 2007 and this past May, the PSC heard testimony from PJM Interconnection, the entity that operates the electricity grid in Maryland and 13 other states, projecting that Maryland could face electricity shortages — and possibly blackouts or brownouts — on hot summer days beginning in 2011.

The order initiates a new proceeding through which the commission will determine whether additional electric capacity is necessary in 2011–12 and thereafter, how much, and if the form of any new capacity should take place.

As a first step, the order directs the utilities to file detailed comments containing information about the size, timing and location of possible electricity shortages, and about possible sources of additional capacity (such as new generation and demand response).

After reviewing the filings, the PSC will determine whether to direct the utilities to issue what are known as “gap requests for proposal” to acquire new capacity to cover any shortfalls. The entire order (9149) can be reviewed at www.psc.state.md.us.

Maryland Opens First International Trade Office in South Korea
Gov. Martin O’Malley has announced that the state of Maryland will open an office in Seoul, South Korea, this fall. It will be Maryland’s sixth foreign office and will be run by Ellicott City-based IDI Corp.

The new office will be the state’s first in a foreign country to operate entirely on a contingency basis. Any funding that would come from the state would be based solely on IDI Corp.’s ability to attract South Korean companies and jobs to Maryland.

“Maryland and South Korea are leaders in many of the same key industries,” said O’Malley. “Opening an office in South Korea presents a golden opportunity for Maryland to tap into the tremendous potential for partnerships with companies there, as well as encourage South Korean companies to take a closer look at Maryland.”

According to recent data, Maryland’s exports to South Korea were $181 million in 2007, making the country Maryland’s 14th largest trading partner. As of May 2008, Maryland exports to South Korea were already approaching $94 million, an impressive 65% increase over the previous year. In turn, South Korean imports to Maryland topped $1.1 billion last year, the majority of which were vehicles.

In 2007, total exports from Maryland rose to a record high of $8.9 billion, an almost 18% increase from $7.6 billion in 2006.

Three Leading Colliers Firms Consolidate Ownerships
Colliers Pinkard of Baltimore, along with Cassidy & Pinkard Colliers of Washington, D.C., and Colliers Turley Martin Tucker of St. Louis, are consolidating their ownership structures into one holding company. Following the closing of this transaction, the new holding company will also expand to include Colliers ABR in New York.

The combined company will be one of the largest real estate services firms in the U.S. and will have a significantly strengthened ability to leverage the global power and reach of Colliers International.

The combination of the four firms consolidates their strengths across a full spectrum of services, including a property management portfolio of 288 million square feet and a leasing portfolio of approximately 210 million square feet. Within Corporate Solutions, the combined company will manage more than 20,000 locations for Fortune 1000 companies, as well as other organizations, delivering a new location every 80 minutes.

“Under the new structure, we will accelerate the growth of our businesses, while maintaining our deep local roots,” said Walter Pinkard, Jr., chairman and CEO of Colliers Pinkard. “Each firm brings unique expertise to the combined company. Sharing these resources allows us all to offer a more diversified platform to our customers, bolstering our ability to provide service excellence.” In 2007, the combined capital markets transaction volume was $5 billion.

King Pharmaceuticals to Acquire Meridian Medical Technologies
King Pharmaceuticals and Meridian Medical Technologies have entered into a definitive agreement whereby King will acquire Columbia-based Meridian for a cash price of $44.50 per share of Meridian common stock, totaling $247.8 million.

The acquisition represents the combination of a premier specialty pharmaceutical company with the leader in auto-injector technology. King, which is based in Bristol, Tenn., expects the transaction to be accretive to earnings upon closing, excluding anticipated synergies and non-recurring transaction expenses.

“We believe King’s acquisition of Meridian represents an excellent business combination, providing King with additional lines of growing exclusive pharmaceutical products, preeminent auto-injector technology and enhanced pipeline opportunities,” said Jefferson Gregory, chairman and CEO of King. “Our extensive infrastructure, including King’s research and development, regulatory, manufacturing, quality management, and sales and marketing resources, strategically complement and enhance the potential for the continued growth of Meridian’s current product lines.”

Meridian pioneered the development, and is the leading manufacturer, of auto-injectors for the self-administration of injectable drugs. An auto-injector is a pre-filled, pen-like device that allows a patient or caregiver to automatically inject a precise drug dosage safely.

Micros Acquires Fry Inc.
Columbia-based Micros Systems has acquired Fry Inc., an e-commerce design, development and managed services provider. Headquartered in Ann Arbor, Mich., Fry also has offices in Chicago, New York and San Francisco.

“Adding Fry to the Micros portfolio enhances our ability to provide customers with advanced e-commerce solutions and technology necessary to operate retail web sites,” said Tom Giannopoulos, Micros chairman and CEO. “With Fry as part of our portfolio, we now have a suite of services in place through our Micros Retail group to deliver the best cross-channel solutions allowing our customers to reach consumers at any point where a transaction may take place.

“While Fry has historically targeted the retail segment, its broad array of e-commerce services are applicable to all of the industries we serve,” Giannopoulos said.

The total purchase consideration for the stock in Fry is approximately $31.3 million, plus the assumption of approximately $18.4 million in debt; further, the selling Fry shareholders are eligible to earn up to an additional $17 million in earn out payments over the next 23 months, based upon meeting specified financial targets.

Franchot, Local Business Owners Promote Maryland Commuter Tax Credit
Maryland Comptroller Peter Franchot has joined with Montgomery County officials and businesses leaders to urge Maryland businesses that cover the transportation costs of their employees to take advantage of the State Commuter Tax Credit.

“Since becoming comptroller, my office has worked diligently to investigate price discrimination and zone pricing practices that may be contributing to staggering increases at the pump,” said Franchot. “With gas prices at record levels and people finding it harder to make ends meet, I am proud to work with our local partners to redouble our efforts to get more folks to take advantage of this incentive program. It is not only good for Maryland business, but also for consumers and our environment.”

The Maryland Commuter Tax Credit program allows businesses operating in Maryland to claim a 50% tax credit for the cost of providing commuter benefits to its employees up to a maximum credit of $50 per participating employee per month. The credit may be claimed against the financial institution franchise tax, the state income tax or the insurance premium tax.

Any person, corporation or 501(c)(3) and (c)(4) organizations conducting or operating a trade or business in Maryland can qualify for the credit, which covers the costs of employee commuter expenses ranging from Metro tickets, bus fare or vanpooling.

Offit Kurman Expands Its Philadelphia Office
Offit Kurman has more than tripled its presence in the Philadelphia marketplace. As of Oct. 1, the attorneys of Abrahams, Loewenstein & Bushman, a firm with roots in the Philadelphia community dating back to 1910, will join the firm.

“Philadelphia is an important market for the growth of our practice,” said Ted Offit, managing principal for Offit Kurman. “In less than two years, we’ve grown to a 20-person operation in Philadelphia, and continued growth is expected. Increasing our presence in Philadelphia through affiliation with Abrahams, Loewenstein & Bushman falls well within our strategic plan.”

“We are excited to join Offit Kurman because it provides us with a strong foundation to better serve our existing clients and attract Philadelphia’s leading companies and individuals,” said Sayde Ladov, a member/shareholder of Abrahams, Loewenstein & Bushman. “We look forward to furthering the Offit Kurman name throughout the Philadelphia legal community.”

Lord Lewis Moonie to Serve as Special UK Government Adviser to PharmAthene
PharmAthene, a biodefense company in Annapolis developing medical countermeasures against biological and chemical threats, has announced that Lord Lewis Moonie has joined the company as a special U.K. government adviser.

Lord Moonie will assist PharmAthene in exploring interest and support for the company’s biodefense programs and product candidates within the U.K. government.

“We are honored to welcome Lord Moonie to PharmAthene in this advisory capacity and are delighted to have the opportunity to leverage his significant knowledge of the U.K. biodefense industry and amongst our NATO allies,” said David Wright, PharmAthene president and CEO.

“Lord Moonie’s medical background and extensive experience as a member of Parliament, as well as his oversight of the research establishment at Porton Down, which included recombinant vaccines for plague and anthrax, will be invaluable to us as we continue to expand awareness and the market for our biodefense countermeasures among our allies,” Wright said. “We view Lord Moonie’s appointment as an important step in the execution of our international strategy to meet the urgent needs of nations internationally requiring medical countermeasures.”

GP Garners Award From Indiana Department of Health
Elkridge-based global performance improvement solutions provider General Physics Corp. (GP) has been awarded a contract by the Indiana State Department of Health (ISDH) to staff and provide offices within each of the 10 Indiana Homeland Security districts.

The staff will engage in planning, training, exercise volunteer management and Cities Readiness Initiative activities. The contract has a base period of two years, subject to annual funding, with provisions for ISDH to extend the contract up to two additional years for GP to support the implementation of a new model for public health preparedness activities in the state.

If fully funded, the estimated value of the two-year base contract is up to $5,852,951. The U.S. Department of Health and Human Services, Centers for Disease Control and Prevention (CDC), is providing 100% of the funding for the contract through grants to ISDH.

The contract requires GP staff to coordinate with the ISDH Public Health Preparedness and Emergency Response Division staff as well as other state and local preparedness partners, such as the Indiana Department of Homeland Security, local law enforcement, county emergency management agencies, local health departments, hospitals and community health centers.


Last Chance to Nominate a Maryland Entrepreneur Award Winner
Maryland Entrepreneur Quarterly, a publication of The Business Monthly, and Star Hotels are celebrating the entrepreneurial spirit with the first annual Maryland Entrepreneur Awards. Nominations are due this Friday, Aug. 22.

The three categories are: Business Entrepreneur of the Year, Technology Entrepreneur of the Year and Educator Entrepreneur of the Year. For more information, go to www.bizmonthly.com and click on Maryland Entrepreneur Awards in the left column.

UCF Joins in With Aflac Iron Girls on Aug. 24
The Ulman Cancer Fund for Young Adults will be participating as the Official Charity of the 2008 Aflac Iron Girl Event Series. As the official charity of the event, The Ulman Cancer Fund will be the recipient of funds raised by participants from all across the country.

On Aug. 24, there will be an Aflac Iron Girl event taking place in Columbia with 37 women fundraising for UCF, 32 with Team FIGHT (UCF’s group training program) and five through Iron Girl directly.

UCF is a leading voice in the young adult cancer movement. For the past decade, the organization has been enhancing lives by supporting, educating and connecting young adults, and their loved ones, who are affected by cancer. For more information on The Ulman Cancer Fund and the Columbia Iron Girl Event, go to www.ulmancancerfund.org.

Howard CAC Seeks At-Large Members
The Community Advisory Council to the Board of Education is seeking at-large members for the 2008–09 school year. The CAC is a group of citizens and representatives from local PTAs that serves in an advisory capacity to the elected school board.

The CAC sponsors educational programming for members and provides them with the opportunity to study and have input into curriculum, education policy, redistricting and budget. At-large members serve a two-year term. For more information, call 410-313-6682.