Global Crossing - GX (formerly GBLX) Message Board

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Technology Stocks : Global Crossing - GX (formerly GBLX)

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To: Teddy who wrote (802)	5/6/1999 11:27:00 AM
From: quidditch	Read Replies (2) of 15615

Teddy: A clarification: The lock-up is a contractual restriction on the ability of certain insiders who are made subject to the lock-up not to sell during the contractually agreed period. The excerpt you posted for AJ is indeed taken from the law and, as you quoted, < if one year has elapsed since the later of the date of acquisition of restricted shares from the Company or any affiliate of the Company>, Rule 144 sales in reliance on that rule are permitted from such acquisition date. BUT THE INSIDERS MAY HAVE ACQUIRED (AND ALMOST CERTAINLY DID ACQUIRE) SHARES WELL BEFORE THE IPO DATE!! The lock-up is intended to prevent sales by insiders that otherwise could have been made in the delicate period of the after-market following the IPO. Rule 144 sales can be made at any time that the seller is able to comply with the rule. To summarize: one year from the IPO date is not dispositive. In addition, if insiders hold registration rights, they can sell shares up to the number that GBLX is contractually obligated to register (subject to market conditions), irrespective of Rule 144 volume limitations. I don't know that reg rights exist, just pointing this out. Regards. Steven

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