And that's not all...
About 2 months before the IPO, Vitech America made a private placement where they sold about 27 units at a little more than $50,000 each. The units included a $50,000 note payable at 9% 15 months after the issuance or when a public offering of stock was made...whichever came first. Along with the $50,000 debenture were 500 shares of common stock and 1000 warrants excercisable at 10.00.
A related party loaned the company $2,000,000 at 9% in May 1995. In accordance with the terms of the contract, this loan was converted into 593,900 shares of common stock about a week after the IPO. That's 593,000 shares at less than 3.50 a share! Adding another 30% more shares to the number available.
There would have to be a filing, presumably, if this individual were to sell any of his shares because he owns more than 5% of the total.
There has been a lot of distribution, so perhaps this is where it came from. I know I wouldn't hesitate to triple my money...or quadruple it!
If anyone can get to the SEC filings on April 30th and May 5th, please post the info. They look like proxy-type filings.
Tom |
