This is chickanery going on here:
Now the corrected version reads:
Friday November 26, 4:41 pm Eastern Time
CORRECTED-Egghead.com files shelf to sell up to 5 mln
shares
In WASHINGTON story on Nov. 23 headlined ''Egghead.com files to sell 5 mln shares,'' please correct headline to say ''Egghead.com files shelf to sell up to 5 mln shares.'' (adds the words ''shelf'' and ''up to'').
And in the lead paragraph, please delete the words ''in a public offering'' and add ''from time to time.'' (corrects to show it is not a public
offering).
A corrected story follows.
WASHINGTON, Nov 23 (Reuters) - Egghead.com Inc. (NasdaqNM:EGGS - news), the online computer retailer that recently merged with Onsale Inc., filed on Tuesday to offer from time to time up to five million common shares.
The shares are being reserved for possible sale to corporate partners and strategic investors, Egghead.com said, adding that the shares are not being offered to the public.
In a shelf registration filing with the Securities and Exchange Commission, the company said it plans to add the net proceeds from the offering to its general funds which could be used for working capital to fund operations, including increased operating expenses as it expands marketing, more staff, software development and infrastructure.
Egghead.com did not disclose the underwriter for the offering.
biz.yahoo.com
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I think this is big humbug. First, they talk an underwritten SPO, then they replace it what I call "leaky" equity issue (whenever the price is good??) again this pressrelease states it does NOT have to do with an option plan here. As DW write earlier the Mgmt. has indicated that.
Looks like they can't get through an ordinary underwritten offering?
Also, as it is no public offering, it comes close to the various private sales of unregistered common stock, perhaps at a discount (??).
To summarize:
If I want to "even out" (increase, modify whatever) a Stock Options plan, all I need is to file an S-8/Amendment or new S-8 and check/increase "Authorized Shares" if there is a problem.
For an example of an S-8 form (for RRRR) see:
sec.gov
(this was not effective, a POS AM has been filed later)
But if I file a shelf for "up to" 5 Mil shares via S-3, mentioning that they are for placement to partners etc, I don't see an angle to a stock option plan here. |
