Topfuel, I beg to differ with you. Stock that is registered for sale on an S-8 as was the case with Mr Gordon's may be sold without restriction pursuant to an effective reoffer prospectus filed for the form S-8, which Mr Gordon has complied with on 5/8/98.
The filing of form S-8 on 6/25/98 clearly states as a matter of public record:
"Mr Gordon was granted a total of 7,000,000 options to purchase common stock under the plan, exercisable at .15 per share,expiring on December 31,2002. The shares underlying these options were registered for reoffer and resale pursuant to a reoffer prospectus filed in conjunction with a Form S-8 Registration Statement (Registration no. 333-52271) filed on May 8, 1998, which registered 12,000,000 shares issuable under the plan. All such options have been exercised and 6,480,000 underlying shares have been sold pursuant to the earlier reoffer prospectus by Mr. Gordon. The remaining 520,000 shares are included in this reoffer prospectus for possible reoffer and resale.
On April 20 1998, Mr. Gordon was granted an additional 7,000,000 options to purchase common stock under the plan, excercisable at .15 per share, expiring on April 20, 2003. The shares underlying these additional options are being registered hereunder for possible reoffer and resale, which may be made on a continuing or delayed basis in the future."
Also, from the S-8:
"Future sales of common stock may have an adverse effect on the then prevailing market price, if any, of the common stock and adversely affect the company's ability to obtain future financing in the capital markets as well as create a potential market overhang"
Respectfully, JAB |
