From today's posteffective amendment to the original SB-2:
Shares Eligible for Future Sale
The Company has 7,497,096 shares of Common Stock outstanding. Nevertheless, as a result of various lock-up agreements entered into with the holders of the shares outstanding prior to the IPO, only approximately 2,000,000 shares were eligible for trading in the Nasdaq SmallCap Market and on the Boston Stock Exchange prior to December 31, 1998. Of the 5,959,709 shares of Common Stock issued and outstanding prior to the IPO, the holders of approximately 3,000,000 shares agreed not to offer, sell or otherwise dispose of ("Sell") such shares until approximately one year from the IPO; the holders of 350,000 shares agreed not to Sell such shares until July 21, 1999; and the holders of approximately 2,400,000 shares (including the officers and directors of the Company and Vito Balsamo, a former director of the Company) have agreed not to Sell such shares until January 21, 2000.
The Company is unable to predict the effect, if any, that sales (or the potential for such sales) under Rule 144 or otherwise of shares previously subject to lock-up agreements may have on the market price of the Common Stock prevailing from time to time. Future sales of substantial amounts of Common Stock in the public market could impair the Company's ability to raise capital through an offering of securities and may adversely affect the market price of the Common Stock.
freeedgar.com
(click on the label "Body:" in the frame on the left - you may have to scroll down to see it.)
The IPO was about a year ago - So 3,000,000 additional shares could potentially be joining the free trading float in the very near future. This increase of approximately 150% does not include any warrants (whose forced exercise looks increasingly distant). |
