Delcath Systems Inc (DCTH)

[Mintmoondog]

Smoking gun for B/O = SEC filings June 29. Okay, I think I was not very clear in my post below what just happened today. SEC filings were registered showing that the CEO and board members sold a small amount of shares for "tax" withholding purposes. These are VESTED shares earned up to June 2017 (ie stock options). Now if they are leaving the company or the company is bought out they must account for the "earned" shares to date. They now have a tax liability. One way they can pay this is called SELL TO COVER which means instead of paying money you simply sell the percentage of shares to cover the tax. This is what was filed today!! This means either all of them are going to leave the company presently (fired) or maybe the company has been bought out and they mistakenly filed this too early exposing the smoking gun. This is the section of the fidelity site that explains this;

Sell to Cover
If you elect to sell to cover, you are directing Fidelity Stock Plan Services to sell a portion of your vesting shares to cover your tax withholding obligation and any applicable commissions and fees. Proceeds from your sale will be debited from your account and will be forwarded to your company for reporting and remitting to the appropriate regulatory agencies. You retain the number of vested shares less any shares sold for tax withholding, commission and fees.
Assume that Mike has 250 restricted stock units vesting on January 1, 2004 but distributing on January 1, 2005. Assume the tax obligation at vesting is $500, the stock price on January 1, 2005 is $10 per share, and the tax withholding obligation at distribution is $725.

https://investorshub.advfn.com/boards/read_msg.aspx?message_id=132620650