Exacctnt,
For the benefit for those who may get the wrong impression, companies selling puts on their stock are selling put warrants and it is a private placement, not on the open market.
The stuff copied below is from RAIN's most recent 10Q. The contracts are clearly described as options, not warrants, and there is no mention of private placements. My understanding is that they were (are) not private placements.
--Mike Buckley
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"During the first thirteen weeks of 1999, the Company generated
approximately $756,000 from the sale of put options compared to approximately $1.0 million for the comparable fourteen-week period in 1998. At April 4, 1999, put options, which may require the purchase of approximately 2.1 million shares of the Company's Common Stock, were outstanding at exercise prices ranging from $5.00 to $13.45 per share, with a weighted average exercise price of $5.83. The sale of the put options was executed as a part of a stock repurchase program
announced in January 1997 and amended in January 1998 and January 1999, pursuant to which up to 1.5 million shares, 3.0 million shares and 2.0 million shares, respectively, of the Company's Common Stock may be repurchased over a one year period." |
