Update 4:31 PM
They didn't sell. They were released from the lockup constraint, but didn't sell.
wsj.com
GoPro CEO's Foundation Doesn't Intend to Sell Shares
Shares Were Transferred to New Foundation Prior to End of 'Lockup' Agreement
By TELIS DEMOS
Oct. 2, 2014 4:31 p.m. ET
A foundation that received a gift of more than $500 million from Nicholas Woodman, founder of wearable sports camera-maker GoPro Inc., and his wife, has no current intention of selling the shares, according to people familiar with the matter.
GoPro shares tumbled as much as 14% on Thursday after the transfer of stock was announced. The transfer required the stock to be released from a "lockup" agreement that had restricted the sale of that stock for 180 days after the company's initial public offering in June, or not until late December.
GoPro shares have soared nearly 260% since its IPO. Early releases from lockups after IPOs sometimes trigger selling by traders who worry that insiders will soon be flooding the market with shares.
But people familiar with the matter said that the lockup release, announced late Wednesday, was only done to make the transfer tax-efficient, as an unrestricted gift.
The shares ended the day off their lows, down 6.9% at $85.46. |
