MrW. He obviously doesn't NEED any shares. A purchase of 20,000 shares...an $11,000 investment...would be seen as a pretty transparent attempt to bolster the share price and would almost surely fail if not backfire. A real bolstering would require a real investment in an amount that he has shown no inclination to spend and in his position, neither would I.
Rock and a hard place.
That said, there's a way that he could create the desired atmosphere.
Have the company pay off the $2M note. (Anybody think he couldn't get that done?)
Exercise the 2M options he got as a belated kicker to extend the note. They are exercisable at either $.50 or $.51.
The net result is a little cleanup of the balance sheet, the company's out $1M net, and the CEO both expresses his confidence through the conversion into shares and pockets $1M which he could ideally use to buy shares in the open market.
Obviously the CEO also loses his annual $200K interest payment, but he ends up with 4M shares and perhaps the bolstering that some would like to see. He gives up the 2M options that had already lost almost all of their value.
Cost to the Company $1M in cash...annual savings of $200K and a cleaner balance sheet.
OK, so it's a little more complicated than an $11k open market buy :o)
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