After a little reading, it appears that the S-3 registration allows majority shareholders (not insiders) to sell their shares without having to file 144s each time. Companies are required to pass several qualifications before they can register their shares this way.
I get the feeling that this means we won't be seeing any more filings by Sapp since I do not believe he is an insider any more.
S-3: This filing is the most simplified registration form and it may only be used by companies which have reported under the '34 Act for a minimum of three years and meet the timely filing requirements set forth under Form S-2. The filing company must also meet the stringent qualitative tests prescribed by the form.
This release by another company helps make sense of it I think.
flanderscorp.com
Flanders Corp to File Registration Statement
Washington, North Carolina, August 14, 1998 Flanders Corporation
(Nasdaq:FLDR), today announced it was filing a registration statement with the Securities and
Exchange Commission, registering approximately 5,749,000 shares of its stock previously
issued and already eligible for resale under Rule 144, 475,000 shares underlying options, and
approximately 637,000 shares underlying warrants. The Company described the registration
statement as corporate housekeeping.
Robert Amerson, President and Chief Executive Officer, stated, "Filing this S-3 is simpler than
trying to assist our investors with preparing Form 144 papers whenever they want to sell some
of their stock, and decreases the amount of frustration and paperwork our investors need to deal
with."
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