Here was a post IRReporter made on RB with regard to concern expressed over NETD 144 filings...
By: IRReporter
Reply To: 494 by calypso Friday, 28 May 1999 at 5:24 PM EDT
Post # of 546
Additional NETD 144 information.
NETD wants everyone to be aware of the legalese of Rule 144 and also to note that "Rule 144 and it's corresponding form allows for the sale of restricted securities after certain holding period requirements are met.
99.9% (sic) of NETD shareholders filing 144 forms are investors in the 11/5/97 Private Placement Offering who have restricted shares. They are not insiders in any way shape or form."
Here's the legalese:
"Form 144: Intention To Sell Restricted Securities
Form 144 filings are indicated by ''Planned Sale''. Form 144s must be filed as notice of the proposed sale of restricted securities. Restricted
securities are those that are acquired directly or indirectly from an issuer or an affiliate in a
transaction (or chain of transactions) not involving a public offering.
Not all Form 144 filers are insiders. Any entity owning restricted stock must file a Form 144 prior to selling the restricted stock. Any insider who files a Form 144, must file a Form 4 if and when the sale is completed. To determine if a given filer is an insider, you may click on the insider name. If the individual is listed as a
shareholder, they are not an insider.
An insider may file a Form 144 and not actually complete the sale. If the sale was completed, the insider should have filed a Form 4, indicating the
transaction was completed. Form 144s contain additional information which may be beneficial.
The data includes the name of the brokerage firm, insider's address, phone number, and the dollar amount of transaction. The amount of stock an insider may sell is ''restricted'' by a number of factors, such as shares outstanding, trading volumes, etc.
The Form 144 must be filed prior to, or on the approximate date, of sale. Insiders are governed by SEC regulations when they file a Form 144. The
following considerations should be kept in mind when you are searching Form 144s. These considerations apply to insiders only - see the above definition (not shareholders or restricted stock owners ):
The filing of Form 144 is not required in any case where the amount of stock to be sold during any three (3) month period does not exceed 500 shares and the aggregate sale value does not exceed $10,000.
If the seller does not sell all the stock covered by the form within 90 days after the filing, the filing process must be repeated before the commencement of further sales, except in cases where the passage of time has extended
the seller's holding period."
DISCLOSURE - As always, IRReporter is being paid in restricted stock to communicate this message and provide other services to NETD.
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