InfoSpace (INSP): Where GNET went! Message Board

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Technology Stocks : InfoSpace (INSP): Where GNET went!

INSP 83.42

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Nov 19 3:59 PM EST

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To: levy who wrote (11592)	8/26/1999 11:28:00 PM
From: yzfool	Read Replies (1) of 28311

It's not that simple: $20 mil of common shares of CTCH were placed with GNET/Vulcan for ~14.88/share, on day of IPO. In addition, warrants were issued to GNET for the purchase of 1.3mil shares at ~12.88/share. The latter shares (from the warrants) are locked up for 6 mo, or longer depending whether CTCH registers them with the SEC in a timely fashion (if they exceed 6mo, the exersise price for GNET is reduced further to ~10.5/share). GNET/Vulcan have board seats, therefore must disclose any sale of shares. And the Board also controls the sale of other insider shares, many of which have been optioned at prices within less than 5% of IPO price (15.75). There is plenty of incentive to make this offering succeed, as you can see. ie why would GNET cash in now, to barely recover their investment, when 1.3 mil shares are locked up for 6 mo at 12.88/share? In the meantime, the retail investor is protected by public disclosure of insider sale and lock up dates.

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