Dale, great points! Here's what I could find (and what a mess):
First: the warrants are held by the Chairman and must be exercised by the end of this year at $0.24 per share! "The Company currently has outstanding an aggregate of 1,200,000 warrants and options held by Thomas V. Geimer, Chairman of the Board of Directors of the Company ("Affiliate's Warrants"). The Affiliate's Warrants are exerciseable at an exercise price of $.24 per share."
Second: "the Company will have 6,492,500 shares of Common Stock
outstanding. Of these, 4,032,662 shares (4,182,662 shares if the Underwriter's over-allotment option is exercised in full) will be freely tradeable without restriction or further registration under the Securities Act." This does not include the warrants.
Third: the lockup period was three months - so shares are freely tradeable! The lockup period is negotiable and not an SEC requirement.
Fourth: Insiders are limited each quarter on how many shares they can sell - so they can't just dump all of them. But these warrants are deadly!
Fifth: Why haven't they filed with the SEC for the quarter ending Jan 31, 1997? Something is wrong here. Maybe they are not filing 144s also!
Regards, Bill |
