CANEXUS CORP 6.5 PCT DEBS T.CUS.DB.D

RE:RE:11,116 RSUs sold?

[Kherson]

Kherson wrote:

Kherson wrote: I find it very odd that Doug would sell his full 1/3 allotment of RSU's for his first year on the job on the very anniversary date of his hire, July 2, 2015! 
Keep in mind that Doug must eventually own 3 times the value of his CEO's base salary in Canexus shares! Since Doug's base salary is $256,000, he must eventually own $768,000 in Canexus shares, which are calculated as the greater of the acquistion cost or market value of the shares!
Doing the math concerning the selling of those 11,116 RSU's does raise some interesting questions! First of all, keep in mind that selling his block of RSU's includes not only the initial award from the Grant Date of August 8, 2014, but also their dividend equivalents in the form of additional RSU's, hence the odd number of 11,116...
What is troubling for Doug is not the fact that he only received $1.52 a share for his RSU's, which works out to $16,896 bucks, but he actually lost $54,579 (Grant Price of $4.91) of value towards his CEO's ownership requirement of $768,000 in Canexus shares!
What could really throw a wrench into the above transaction for Doug is that according to the 2015 Information Circular, both the RSU and PSU plans have a clawback feature where any incentive compensation paid under the plans to an executive officer is subject to clawback!
The question has to be asked, why would Doug sell now if he really believes that the company can "grow and generate shareholder value over the long-term", as according to his letter to shareholders in the 2014 Annual Report?
Kherson
 

I guess we now know why Doug sold his RSU's at $1.52. The book value is only 11 cents!
Kherson

Odd that Doug would sell his RSU's 2 weeks after receiving a proposal from SPB to acquire all of the outstanding shares of Canexus...
I wonder if the ASC is aware of this?
Kherson