digital turbine (APPS)

[bud_fox]

Let's start with the insider lockups

Appia shareholders received approximately 19 million shares of newly issued Digital Turbine stock as part of the acquisition on March 9, 2015. The first tranche was extended 45 days from September 2nd, 2015 to October 17th, 2015. All other expiration dates remain the same. The vesting schedule can be found in this 8-K and is as follows:


Tranche #1 - October 17th, 2015

Tranche #2 - December 1st, 2015

Tranche #3 - March 4th, 2016

After each vesting date, approximately 1/3rd or ~6.33 million shares will become unlocked and able to be sold in the open market. A mere 45-day extension hardly expresses confidence in the future of Appia and Digital Turbine. I believe these insiders will soon look to exit some or all of their position.

The details of the lock up are covered in the Appia Merger Agreement