Some interesting information from pennystocks4u.com.
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We have further information on Grand Toys (GRIN:NASDAQ). As of June 30, 1999 GRIN had a total of 1,577,597 shares outstanding. According to the transfer agent, 2,527,634 shares were outstanding on Wednesday, 3,126,178 shares on Thursday and 3,426,178 today. As of today, 1,110,689 shares were restricted. Given the recent trading activity and this information, the float is likely much larger than previously thought. More than twice as many shares are currently outstanding versus June 30, 1999. We hope to have an accurate number for the shares in the float from GRIN on Monday.
As of June 30, 1999, GRIN had 1,647,872 in unexercised options at an average price of $5.63. The transfer agent confirmed that some options have been exercised recently but they could not confirm the number and could not release a list of shares issued in the last month. We have not yet received a reply to email inquiries to Mr. Ron Goldenberg, CFO of GRIN concerning the recent increase in share count. We are assuming that all options have been exercised and subsequently sold into the market. We are also assuming that an additional 200,709 shares were issued under the companies Stock Option Plan, which allows for a total of 300,000 options to be issued. As of July 31, 1999, 94,100 options had been issued.
A second explaination of the increased share count is that GRIN sold shares into the open market, or directly to Market Makers. With the low number of shares in the float, and the large short positions many traders had, Market Makers may have contacted the company directly in order to obtain shares to cover their positions.
Assuming that employees and executives at GRIN exercised their shares, GRIN should have received approximately $10 Million in cash. According to their Registration statement, dated December 31, 1998, GRIN plans to use this money for "working capital and general corporate purposes". We have requested further information on the plans for this cash infusion.
Another interesting statement in the registration of these options is below:
"In connection with the distribution of the Shares, the Selling Stockholders may enter into hedging transactions with broker-dealers. In connection with such transactions, broker-dealers may engage in short sales of the Shares in the course of hedging the positions they assume with the Selling Stockholders. The Selling Stockholders may also sell the Shares short and redeliver the Shares to close out the short positions. The Selling Stockholders may also enter into option or other transactions with broker-dealers, which require the delivery to the broker-dealer of the Shares. The Selling Stockholders may also loan or pledge the Shares to a broker-dealer and the broker-dealer may sell the Shares so loaned or upon a default the broker-dealer may effect sales of the pledged shares. In addition to the foregoing, the Selling Stockholders may enter into, from time to time, other types of hedging transactions."
Please note that we expect some extreme volatility in the stock for at least several weeks. We hope to speak with Ron Goldenberg soon to resolve all of these issues. We will issue an update including a new price target as soon as this information is available.
-The Staff of PennyStocks4U.Com |
