Are you concerned that the company registered an additional 1,896,921 shares of the common stock for the benefit of the existing shareholders and an additional 1,131,921 shares to cover the shares that could be issued under existing warrants held by the selling shareholders? This is very unusual. Take a look at some of the other recent IPOs. Generally, the pre-IPO shareholders are locked down pretty tight. Do these people want out? Have you actually read the SB-2/A? For your own benefit, please read it:
sec.gov
From the Sb-2/A:
Upon completion of this offering, we will have 6,810,716 shares of common
stock outstanding, assuming no exercise of outstanding warrants or the
underwriter's over-allotment option. After the offering, 4,096,116 of the
6,810,716 shares of common will be immediately tradeable without restriction
under the Securities Act, except for any shares purchased by an "affiliate" of
ours, as that term is defined in the Securities Act. Affiliates will be subject
to the resale limitations of Rule 144 under the Securities Act. In addition, an
aggregate of 1,131,921 shares, issuable upon the exercise of outstanding
warrants will be immediately tradeable without restriction upon the completion
of this offering, subject to the lock-up agreements described below.
We issued the remaining 2,714,600 shares of common stock in private
transactions in reliance upon one or more exemptions contained in the Securities
Act. These shares will be deemed "restricted securities" as defined in Rule 144.
All of these restricted securities have been held for more than one year as of
the date of this prospectus. Therefore, all of these shares will be eligible for
public sale beginning 90 days after the date of this prospectus in accordance
with the requirements of Rule 144, subject to the lock-up agreements described
below. |
