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I don't believe anyone sold here because they needed the money now or to take any profit. I believe these were strategic (and very smart moves) in order to accumulated shares. It looks like they sold their shares after they were eligible for their rights, at a price that was 50-75% high than what they would pay to re-purchase the same amount of shares through their rights(1.00), plus they were eligible to purchase .1086 more shares. They used the 50-75% they gain in the transaction to help fund the additional purchase of shares.
Remember, most of them purchased their shares at a much high price originally, so they lost money overall but put themselves in a very good position to regain any losses very quickly when the price moves back up, because they have many more share now.
The only question is, can the loss be written off or is it considered a wash sale because they bought back identical stock within 30 days of selling. I am not sure what derivatives are or if you sell them and buy common shares, are they considered "identical" or not. Still learning...
But, if they can write off any loss, that is even a more shrewd move on their part.
I think these are 2 important paragraphs in the release because Mr. Wang has a presence in China, which can be a huge market for both the medical and the industrial applications for EKSO's products. In my opinion, the industrial market will bring revenues very quickly.
In connection with this investment, Ted Wang, Ph.D., CIO of Puissance Capital Management, is expected to join the Ekso Board of Directors. Puissance Capital Management is a global asset manager founded in 2015 with offices in the U.S. and China. Prior to founding the firm, Dr. Wang was a Partner of Goldman, Sachs & Co in New York. During his 18-year tenure at the firm he held many leadership positions including as a member of the Goldman Sachs Risk Committee. Prior to joining Goldman, Dr. Wang co-founded Xeotron Corp., a company specializing in DNA biochips in Texas. Dr. Wang holds a Ph.D. in Physics from the University of Minnesota, an MBA from the University of Texas, Austin, and a BS from Fudan University, China.
Ekso intends to use the net proceeds from the rights offering (i) to continue with clinical, sales and marketing initiatives to accelerate adoption of Ekso in the rehabilitation market and broaden the Ekso footprint into Asia, (ii) to support research, development and commercialization activities with respect to an Ekso robotic exoskeleton for home use, and/or (iii) in the development and commercialization of able-bodied exoskeletons for industrial use, and for working capital and other general corporate purposes.
This line from the Press Release...
Common shares will be delivered to subscribers in the rights offering on or about September 7, 2017
@ Rhet...I believe you are correct about Mr. Looby having options. I seem to remember reading one of his filings some time ago. I was going to mention that but I didn't then and still don't have time to sift through all of the filings. Anyone interested can go to the EKSO website and go to the "About Us" tab and then click on "investors" in the drop down menu, then scroll down to "latest SEC filings". Looking through those filings will give you somewhat of a feel for what the execs are thinking/feeling about the companies future.
Also, I believe the common shares he held, he received at $ 4.00/ share, as did others.
As you pointed out, there is often other factors as to why execs hold, buy or sell their common shares. They could be using the funds elsewhere, that benefits the company.Tax timing, re-positioning stategies, overall market conditions, etc.
Actually he only owned 1,601 shares because he received 1,601 rights which were worth 1.1608 shares each...that's how it comes to 1,857 shares. Then one over-subscription right for each basic right. That gets him the other 1,857 shares.
I knew he didn't own many shares.
I had 1,086 shares and did the same thing he did (if I am granted all requested rights)...I feel good about my decision to exercise both my max amount of basic and over-subscription rights, based on what the execs have done.
In addition to the Form 4 reports listed on the sticky note list:
Mr. Looby exercises all of his basic and over-subscription rights. I take all of these Form 4 reports as a positive, to me it says the execs are confident in the results the offering will bring about.
https://www.streetinsider.com/SEC+Filings/Form+4+EKSO+BIONICS+HOLDINGS%2C+For%3A+Aug+31+Filed+by%3A+Looby+Thomas/13267581.html
I guess all the Statements of Changes to Beneficial Ownership both answer some of my questions and confirm some of what I had suspected. Refer to posts # 3656, 3666,3670.
From the EKSO Facebook page
“This is the first entry in a new video series, HardWIRED: Welcome to the Robotic Future, in which we explore the many fascinating machines that are transforming society.” –Matt Simon.
We are excited to announce Ekso Bionics will be featured in a new video series on robotics from WIRED! Be on the lookout for this innovative series in the upcoming weeks!
#MovingAsOne #Robotics #Innovation #Exoskeletons #WIRED #EksoGT #EksoPulseAnalytics
https://www.wired.com/story/what-is-a-robot/
What Is a Robot?
Introducing
WIRED.COM
I was told I should be able to trade my shares 10-15 days after the expiration of the offer which was the 31st.
Deadline is tomorrow, I am guessing that is when they will begin seeing how many basic rights were exercised, then when they know that they will divide up all rights that were not exercised among those who requested over-subscription rights. After that the rest of the shares go to the company mentioned in the offering, who guaranteed them. Unless something unforeseen happens all these shares will go to someone. EKSO was guaranteed $34 million, I believe.
The dilution will only take place when all the shares in the offering are issued.
I think what you are seeing in the share price is the reaction to the coming dilution. I said some time ago, that the share price would move down closer to the 1.00 level. It has done that after every offering that was made previously.(move closer to the price that the new offering was priced at)
@ Princes...VERY IMPORTANT...you may only have until close of business today to notify your broker of your decision so that they have time to meet the 31st deadline!!!!
Read all paperwork sent to you by your broker!!!
2 Princes...see form 424B2
http://ir.eksobionics.com/all-sec-filings#
@ Princes...
Nothing happens to your current shares. Because of the additional shares being issued though, anyone who does not exercise their rights will see their position in EKSO diluted.
I will try to find the paragraph in the prospectus supplement that explains this.
Over-subscription rights...If you exercise your basic subscription rights (1 right for each share you owned and held through the record date of 10 Aug) you are eligible for over-subscription rights equal to the number of basic rights you were eligible for. Over-subscription rights come from any rights that have not been exercised by those who were eligible for them. You may not get any/all of the over-subscription rights you request for several reasons. If everyone exercises their basic rights you will not get any, the rights that are not exercised will be divided among those who have requested over-subscription rights
and how many they have requested. So, you may get all or only some of the over-subscription rights you request.
That is explained in the prospectus supplement as well.
You can find the supplement in the sticky notes above or at the company website's investors page. If you own shares you should have received a copy of it.
Also look at my previous posts for much of the the information you need.
What does one have to do with the other? He is still in a critically important position. What is the NEED to sell shares? I didn't see any PR saying he has stepped down from any position even if he has made a position change it could be to concentrate on a portion of the business that they feel needs more of his direct attention. Could be for any number of reasons.
This is a paragraph from page S-12 of the Prospectus Supplement.
You may not be able to resell any of our common shares that you purchase pursuant to the exercise of subscription rights immediately upon expiration of the Subscription Period or be able to sell your shares at a price equal to or greater than the subscription price.
If you exercise subscription rights, you may not be able to resell the common shares purchased by exercising your subscription rights until you, or your broker, dealer, custodian bank or other nominee, if applicable, have received those shares. Moreover, you will have no rights as a holder of the shares you purchased in this rights offering until we issue the shares to you. Although we will endeavor to issue the shares promptly after completion of this rights offering, there may be a delay between the Expiration Date and the time that the shares are issued. In addition, we cannot assure you that, following the exercise of your subscription rights, you will be able to sell your common shares at a price equal to or greater than the subscription price.
I believe the 10-15 days I spoke of before was to allow time for Ameritrade to receive the shares, remember, it will take a bit of time for them (EKSO) to figure out how many over-subscription shares are claimed and to whom they go.
I was told 10-15 days after expiration date of offer (which is 31 Aug), it only took a few minutes and that included the time it took for him to answer several questions.
@Mandofellow...Please review my posts starting from #3663 until current. I have made several posts as I found the info. Thanks.
Just received; in the mail, my Prospectus Supplement, Rights offering instructions with a cover letter, from A-trade... it had a "reply by" date of 29 Aug. Not a whole lot of time for an investor to get the money together or make a decision if he/she had not been follow his/her stock very closely.
My exercised shares and over-subscription shares have posted to my A-trade account but I cannot trade them yet. Money has been debited from my account so I assume I actually own them as of now, just cannot trade them yet.
Just got off the phone with Ameritrade re-organisation support. He did not know the answer to the tax question but did confirm that you can sell your original share and get your rights as long as you held the original shares through the record date of 10 Aug. ***DOUBLE CHECK THIS INFORMATION BEFORE MAKING AND TRADE DECISIONS***...He did say that I could ask the tax department at A-trade about the other question. So, again, I suggest you call both, your account and your broker before you do anything!
Just got off the phone with my accountant, concerning my previous question. He was not exactly sure, he would have to look into it further. His initial thought was that the "wash-sale" rule does apply, but he would have to check to see if the fact that you exercised your rights prior to selling the initial share constitutes a buy agreement, making you possibly exempt. His advice is to question your broker and accountant. States treat it differently as well.
The question I just raised does not apply to me because the shares I hold were bought at $1.18, so at current PPS I would not be selling at a loss. For many though, they would be selling at a loss so I want to make them aware of that "wash-sale" rule and make sure they have looked into all consequences of possible sale here. I would appreciate if anyone could post an additional info.
@kpisme...Do you know how they treat the sale of the original shares and consequent buying of the new (rights) shares tax wise? Does the "wash sale" rules apply? Are you able to claim the loss?
Only guessing right now but I would think those rules don't apply in this case. If no one here knows I guess I'll have to contact Ameritrade.
@Dalcan...See post #3680
It may just be a timing issue. There is a lot of working parts and different brokers have slightly different procedures.
Just finished speaking with Ameritrade and have exercised the basic rights and over-subscription rights. Only took a few minutes. It will take 10-15 days after the closing date of the offer (31 Aug) before the shares will show into my account. Hope that info can help anyone with questions.
I will not know how many of the over-subscription rights I will get until everyone has exercised or declined their rights.
CHECK YOUR STOCK ACCOUNT...My CUSIP# has appeared on my Ameritrade account
Not yet, I was told that it would show up in my Ameritrade account with a CUSIP#, then I can call them and execute my rights, it only takes a few minutes. I don't know how it works with a broker.
See post #3656
That is the reasoning I brought up in a previous post. Do you know if the insiders are required to file Form 4 if they exercise their rights and buy the shares? If so, I would be watching for them after the 31 Aug deadline. Also, (can anyone confirm or correct me?)I am assuming institutional investors have the same rights, so I would also look at institutional investors holdings to see if they took advantage of the offering. They may tell you if your thoughts about the offering were in line with theirs.
That is not always the case. I don't think it is in this instance.
Angold began selling 221,000+ shares the day after the record date of the rights offering. Curious to know the reasoning behind it, maybe what I mentioned in a previous post.
This can be found on the EKSO Facebook page