UP to 25% of Units Potentially Sold to InsidersThis morning's disclosure is certainly an eye opener. So undefined insiders could participate in up to 25% of the offering. Something should have been filed 21 days prior to their participation in the closing (July 6 for that filing?). I haven't seen anything yet.
The disclosure also lists some exemptions they are relying upon to exempt them from rules governing treatment of non-insider shareholders. Anyone familiar with these rules?
So we were at $0.53 per share. A bought deal for units is done at $.425 per share and the share price is engineered to less than $0.40 per share and stays there until closing. Insider provision to acquire 25% of the issue disclosed in press release concurrent with the closing announcement.
So if insider participation should have been disclosed say July 6 does the FMV get established that day or do you wait until they "negotiate" the bought deal with the underwriters on July 20 when the price is dropped? Many questions and no answers.
Looks like insiders will do anything to acquire more shares. That - in a very perverse way - validates the value we all feel is there.