The company did file an S-3 Registration statement giving all investors in its earlier private placements the opportunity to sell a portion of their holdings. This filing does not indicate that the shares will be or have been sold, but gives holders the option should they desire. Remember, the investors listed in that table have been holding these securities for more than a year.
Companies raising money have to give their investors liquidity at some point, or the investment flow would slow down. Most investing institutions require the issuer to file these type of registration statements within a certain time frame.
As for our fund, I'd note that this registration statement only covers two-thirds of our holdings...while some of the holders have all of their shares registered. Finally, our fund was the largest buyer of LPH stock and helped encourage participation by other funds.
We continue to have a favorable opinion of LPH and its prospects- but may also be a seller as the price rises, or better investment opportunities present themselves. That is the way capital markets should function.
As a final thought, remember that most investors can sell private placement stock after one year, under Rule 144 - regardless of whether or not a registration statement has been filed.
Hope this adds to the discussion,
Stephen Taylor
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