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The Original dpb5!

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The Original dpb5!

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Re: None

Tuesday, 02/06/2001 1:17:09 AM

Tuesday, February 06, 2001 1:17:09 AM

Post# of 1718
Regarding WLGS Employee Stock Option Proposal and potential comments regarding dilution....

It is commonly known that ESOPS's have the potential of diluting stock value for common shareholders.

Watch for the bashers to bring this up.

WLGS is proposing 7,500,000 shares for an ESOP.
That is 7.5% of the CURRENT O/S shares. If the 300,000,000 shares are approved, the so called "overhang" will become 2.5% of O/S shares.

As the attached article explains, any ESOP plan that is less that 10% of the total O/S shares of stock is not a bad plan and not significantly dilutive to the common shareholders....

http://www.fed.org/onlinemag/dec97/brumberg.html





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