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By: keep_trying
26 Aug 2005, 02:13 AM EDT
Msg. 61862 of 61888
(This msg. is a reply to 61836 by joesr.)
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Joe.. Thanks for making the clarification. After seeing the opinions by EAC and others that Gerry Newmin sold the shares while you were noting that the shares were converted and held, I printed the Form 4 and cross checked the numbers. I believe your interpretation is correct, that is, the 600,000 plus shares were acquired via conversion of options and conversion of a promissory note to common stock, but not sold.
For example, the Table I (NON-DERIVITIVE SECURITIES) shows GN acquired 489,272 shares at a cost basis of $1 while Table 2 (DERIVITIVE SECURITIES) shows GN disposed of a promissory note exercisable for conversion to shares of common stock in the amount of 489,272 shares. IMO, if the common stock had been sold, there would be further entries in Table 1 under the category of Box 4. Securities Acquired or Disposed of. Box 4 only shows acquisitions. The disposal was of the stock options and the promissory note, not any shares of common stock.
GN may decide to sell the new shares of common stock he acquired through the conversions at a later date but, my interpretation of the Form 4 is that no such sale was reported in this disclosure.
IMO, it is a positive that MCET is released from the obligation to GN for a promissory note and that MCET received funds for the conversion of 115,000 stock options. We will have to wait and see what Gerry and his spouse do with the newly acquired shares. However, one might reasonably expect that GN anticipates that the promissory note conversion to common stock will yield GN more value than the $1 per share conversion cost basis.
All IMO, of course. I suggest others take a closer look at the Form 4 and confirm their own interpretation.
KT
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