Maywood,
If his exercize price were, let's say, $5 per share, he would need to come up with $500,000 to exercize his options. The difference between $5 and $12.45, on 100,000 shares and at approximately 30%, accounts for the remaining $250,000 Jack King says he "needed" to raise to pay tax liabilities.
Now, let's assume, giving Jack the benefit of the doubt, that there really *will be* a tax liability (he may have write-offs, tax loss cary-forwards, etc., so it is not necessarily a foregone conclusion.) My question, which was raised earlier by another poster, is, "Why does he need to raise the money for tax liability in November?" If he thought that ZITL was a bargain, he would defer covering the tax liability as long as possible, right?
I think we will see $5 by the end of the year. (Disclaimer: A free prediction is hardly worth the cost.)
Good luck,
RB |
