Mark and Ken each can sell up to 30,000,000 shares. I think this is in accordance with the stock incentive plan of IBZT. Bottom line is it is further dilution of up to 60 million. When they actually sell is really up to them. On Dec 8, 2003 IBZT increased the stock incentive plan from 22 million to its current 450 million.
It is further dilution but I don't see why it is necessarily bad. Normally, any insider sells is a bad sign but these guys have not been paid good salaries for some time. I would watch out for future S-4 filings to see how many shares each of them unload.
This is purely speculation on my part and I'm no expert on what the rules are in regards to timings of stock sales by insiders. If they start to dump a large percentage of their holdings at one time that might be a sign that the company is having a tough time. On the other hand, if they were confident of the financial direction the company is headed, then wouldn't it make more sense that they hang on for a better pps? Again, I'm not an expert in this area.
The key is in the 10K. They last quarterly came out in July. A lot has happened since then so I'm anxiously waiting for it. According to the WSJ it would be within 15 days. I don't know but until that time the pps might stay within a certain trading range. Unless of course some monstrous PR comes out.
AI
