again, that is a *possibility*...so I'll "devil's advocate" my response back to you: why is the BOD buying shares directly off the market of HISC? I just don't think they would put $1M (of their personal $) or more $ into HISC if it was going to tank. (I know I wouldn't.)
Logic would dictate they would save their $ and put it into the new company if they thought HISC was going to be worthless.