Stock Options revisited
Last night I posted comments on Chapter II of the Bylaws, specifically article 5 on the top of page A-2. Today I did further research, looking at past Annual Reports to support my thesis.
That research has disproved my posting from last night. The number of shares shown in the Bylaws, 5,862,615 shares, was the figure from 2011. Subsequently, HRT had a 50 for 1 stock split.
That stock split boosted the number of shares to 293,130,750
(50 * 5,862,615). On 12/31/2012 the shares reported rose to 295,412,650 and on 12/31/2013 the share count was reported at 297,466,746. 297,466,746 - 293,130,750 = 4,335,996 shares. This is the exact number of stock options reported under item(ii) to be voted on at the Convocation.
Taking 297,466,746 / 30(reverse split) = 9,915,558. This is the exact new share count report in the Bylaws, Chapter II, Article 5.
I was wrong. The numbers in the Convocation are correct and there is no options conspiracy to take 43.73% of the company. Hats off to both VanWilder and powerwalker for challenging my position.
