In follow up to my previous post:
Mr Gordon, We are aware that on 12/8/97 you were granted options to acquire 7 million shares of TSIG common stock. We are also aware that TSIg's board of directors is authorized to discriminately reduce the price of shares that are under option to the lowest closing price of any subsequent day from the initial grant. Based on this authority we are aware that the option price for the 7 mill shares was repriced to .20 per share on 1/27/98 and then again repriced to .15 on 4/20/98. We are also aware that on 4/20/98 you were personally granted options for an additional 7 million shares of TSIG common stock at the option price of .15 a share.
On 5/8/98 Form S-8 was filed with the SEC registering for sale 7 million of the 14 million shares that were then under option. After exercising your option for the 7 million of the shares you were then free to trade them on the open market. In fact based on board resolution you did not even have to pay for these shares at the time of option. A promissary note is all that was required. The earliest that you could have begun selling these & million shares is 5/8.
On 6/25/98 Form S-8 was again filed with the SEC. This new filing informed us that you indeed exercised your option on the first 7 million shares and had ALREADY SOLD 6,480,000 OF THE 7 MILLION SHARES THAT WERE REGISTERED ON MAY 8TH. THIS REPRESENTS OVER 65% OF YOUR PERSONAL TSIG HOLDINGS!
Additionally the 6/25 filing informs us that you have now registered the second 7 million shares for sale that you were granted option to purchase for .15 a share on 4/20/98. Based on the reality of events that have transpired since the 5/8 filing it seems apparent that it is your intent to exercise your option on the remaining 7 million shares and sell them on the open market along with the remaining 520,000 still awaiting sale from the first 7 million shares.
Mr. Gordon, We are puzzeled,
Why do you choose to sell such a hugh portion of your TSIG holdings at a time just prior to events that as you described to Beebs and Gambler could drive the stock price of TSIG higher by multiple dollars overnight?
The fact that you have sold over 65% of your TSIG holdings, a substantial 6,480,000 shares and have now registered to sell an additional 7,520,000 could cause some to conclude that your actions belie your claims.
On May 8th The day you could first begin selling your first 7 million shares the price of TSIG stock was on a rapid uptrend, fast on its way to reaching Gamblers prediction of a dollar a share.
On that May 8th Friday the stock began the day gapping up from the previous days close rising to a high of over .70 a share when suddenly for no explainable reason a major sell off began to occur. The stock price plummeted. The TSIG bulls responded by buying more and more of these "cheap" shares (or so they seemed at the time). every time the bulls began to reverse the downward spiral BAM! another major sell off......A review of the S.I. posts on that friday and the days thereafter reveals that the blame for this price slide was placed on the unscrupulous market makers!...No one ever suspected that it might truly be a flooding of the market by yourself with sell orders that have totalled 6,480,000 shares.
Based on your .15 option price and my estimate of your average selling price of .55 a share you have thus far profited over $2.5 million directly from the pocketbooks and wallets of the TSIG faithful. Loyal shareholder who were convinced that you would never sell them out. So much so that they were even willing to lock away their stock certificates in sealed guarded vaults,with no thought of extracting them prior to the realization of TSIG's full success as so prophesied by yourself.
Mr. Gordon, a) Why should TSIG shareholders lock away their shares while sitting back watching the stock price tumble as you profit at their expense?
b)Now that your unloading of TSIG has become a matter of public record what kind of signal do you think that sends to other insiders who have already filed 144's to sell shares of TSIG stock? Ready,Set,Go!?
Respectfully, JAB |
