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Technology Stocks : StorageNetworks, Inc. (STOR) -- Ignore unavailable to you. Want to Upgrade?

To: Jim Furley who wrote (99)	1/31/2001 11:29:09 PM
From: Glenn Petersen	Respond to of 187

There are no hard and fast rules, though a fund would be subject to the same restrictions imposed on the other pre-IPO investors. The specifics of the lockups are dictated by the underwriters. From STOR's S-1: There may be sales of a substantial amount of our common stock after this offering that could cause our stock price to fall. Following this offering, our current stockholders will hold in the aggregate a total of 79,527,118 shares of common stock, including common stock that will be issued upon the automatic conversion of our convertible preferred stock, which they will be able to sell in the public market in the near future. In January, 2000 we sold 6,012,843 shares of Series C convertible preferred stock for aggregate consideration of approximately $103,000,000. In February, 2000 we sold 1,758,240 shares of Series D convertible preferred stock for aggregate consideration of approximately $40,000,000. Based upon the number of shares outstanding as of April 30, 2000, upon the closing of this offering, these shares of Series C and Series D convertible preferred stock will automatically convert into 13,783,926 shares of the 79,527,118 shares of common stock that will be held by our current stockholders after this offering. Of the 88,527,118 shares that will be outstanding upon the closing of this offering, assuming no exercise of outstanding options or warrants: Ÿ all of the 9,000,000 shares offered under this prospectus will be freely tradable in the public market; Ÿ approximately 65,743,192 additional shares may be sold upon the expiration of 180-day lock-up agreements, subject to the restrictions of Rules 144 and 701 that are applicable to our affiliates; and Ÿ approximately 13,783,926 additional shares may be sold after the expiration of 180-day lock-up agreements subject to the restrictions of Rules 144 and 701. In general, under Rule 144, shares of our common stock that have been held for at least a year may be sold 90 days after the date of this prospectus, subject to volume and manner-of-sale restrictions. Under Rule 144(k), shares of our common stock that are held by persons who are not our affiliates may generally be sold without restriction, if those shares have been held for at least two years. Under Rule 701, shares of our common stock issued pursuant to a compensatory stock plan may generally be sold 90 days after the date of this prospectus, in reliance upon Rule 144. Sales of a substantial number of shares of our common stock within a short period of time after this offering could cause our stock price to fall. In addition, the sale of these shares could impair our ability to raise capital through the sale of additional stock.