Wave Systems Corp. (fka WAVXQ)

[cygnuscap]

a vested option is the same thing as share ownership. That is why the SEC requires the "beneficial ownership" clause. any options that vest within 60 days of the filing are considered shares. i.e. one could exercise them and make them full shares. Mgmt. may argue that many of their options are underwater so that they "deserve" to get grossed up as a future incentive. But this argument is not really fair in that if they get the stock to rise, then their existing options go in the money and have value. At the end of the day, options are just another form of compensation. If shareholders want to carve out a third of the company and give it to management and future employees, so be it. Its just an unusual (and not very good) deal for existing shareholders.


I do note that the shorting against the PP is an opinion built through conversations with lawyers and PIPE hedge funds. I do not know if it is true at WAVX. It is certainly a grey area with the SEC.