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Microcap & Penny Stocks : Green Oasis Environmental, Inc. (GRNO)
GRNO 0.00Dec 5 4:00 PM EST
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To: Bill Fuller who wrote (127)10/15/1996 2:12:00 PM
From: Zeev Hed   of 13091
 
Bill: In 1993, I do not think that GRNO was even a public company, so the option would have been granted by agreement with other founders. Often, for tax purposes, founder stock is granted at par value (.01/share in this case), it is quite possible that the additional stock granted to himself was in response to a new treatment of capital gains (half of the normal long term capital gain if the investment was in a company having sales of less than $5 million). It is quite possible that all the holders got the opportunity to double their respective position in the company (and in essence keep their relative share of the company) by buying additional shares at par value. I know that one of the companies that I helped found, came back to me in 1993 and offered additional shares at par value (about two years after the founding of the company), so at least part of my stock would qualify for this special capital gain treatment. My total share of the company remained the same after this transaction since the other founders felt the same way about taxes and bought additional founder stock.

In summary, I would not make a big fuss about it. As a matter of fact, he paid at least ten times par value, which is more than I did. And, of course, I am holy in these matters, so he is holier.

Zeev
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