The S-8's are supposedly designed for Ceo's to pay employees with stock. New startups and companies struggling to make payroll. The file itself is for employee's stock option incentives. This can mean bonuses for employees who have earned it, and or paid their salaries in cash and can be given stock options just like GM offers to emloyees.
Its difficult to get people to work for ya if there is no way of paying them. This is a very good plan in this context for which it was designed. There should be caps on what any employee can receive until the company can meet payroll so it can't be abused. Common sense tells us that it has to be a competetive salary, and exhuberance should be taken out of any plan. When the company can meet payroll the bonuses should be a part of the plan........No investor would oppose this.
But as we can see the employees here include them The Owners, and in this case only him and what he offers to the other insiders. There is no cap on these S-8's........the skies the limit. So what has happened here these shyster attorneys and shyster accountants they use - fill them in on this legal loop hole that allows them to be the employee. Until the Sec shuts the door on this they have not only and unlimited credit card with the way they sell stock or use stock in lieu of cash, but and unlimited amount of cash by way of investors. Its the Sec giving them and ATM machine filled daily with investor dollars........when one of these S-8's are in place. If the stock price allows it as in this case did, and the marketcap had grown into the millions, the more marketcap the more the corrupt insiders can take.
In this case any Ceo who would take $26 million out of such a tiny company who got there on retailer dollars needs to be investigated by the Sec. This is corruption at its worse. Its as good as insider selling when they are tauting a stock.
When retailers had poured their hard earned cash into this his plan bolstered the share price from around $4.50 to $13+ with this r/s of 300/1........This gave the share price a boost but the market cap had not changed. This allowed them to file this S-8 and sell company stock for more than it was worth, in this case $6.00 a share at 3,000,000 shares.
In the interim everyone else lost shares big time and when the selling occurred it took the share price down big time. When these big block sells came into place the holder of any shares got whacked big time. The insiders stocks are first in line and stock holders watched the stock price of $13+ dollars evaporate before their very eyes.
This started in Dec at $13+ and when it was all said and done the share price was $.041..........the math was done on this it was known what would happen here. This is not good stewardship and this is not protecting the investor dollars. Its looting them.
The company had a big time opportunity to make application to the big board, the Nas or the Amex, they qualified for either. This would have given growth to the investors. This was the path he and they chose the opposite of what was good for the company and the individual investor........
Now the company tauts and is promising growth......this is nothing but a farce........its $77 million dollars in debt and lost all of its chances or threw it away. Why should he care now?......The Ceo has become very rich and those close to him have done very very well all except the retailer.
If he does its only to enrich himself more. I guess we would all like to start our careers having this much money in our bank or offshore account somewhere.......kind takes the edge off things.
The institutions could have helped with this debt, but who in their right mind would give this or these crooks any more chances?. If this activity would have occurred on the Amex or Nasd the class actions would have happened before that money hit his personal accountant.
News 
Market Data 
Discover 
AI
