Ocata Therapeutics Inc fka OCAT

[nahin]

A possibility of Caldwell's incentive to retire debt.

My understanding is that Caldwell gifted himself (with the Board's approval, of course) 90 million shares earlier this year. For tax purposes they were declared to be worth $0.10 each. This would generate a $3.2 million Federal income tax liability for Caldwell. This must be paid as part of his Estimated Tax during the current year.

However, I've also been given to understand that Caldwell is required to hold a 7% stake in the company. Assuming there is no further dilution and there are currently 1.09 billion outstanding shares, Caldwell must hold 76 million shares, freeing him to sell about 14 million shares.

If Caldwell wants to cover his 2010 tax liability of $3.2 million from the sale of the 14 million shares that he is allowed to sell, he needs the share price to be at or above $0.23. Could this be the reason he is retiring the debt early, so as to boost the share price sufficiently in the short term for him to be able to cover his tax liability?