Outstanding Shares and Market Capitalization On Friday, February 19, 2010, substantially all of the company's outstanding Class A convertible preferred stock automatically converted to common stock as a result of stockholder approvals obtained at the February 17, 2010 special stockholder meeting. The aggregate number of outstanding shares of the company's common stock was 1,020,745,435 and the number of remaining outstanding shares of preferred stock, not yet converted to common stock, was 150,569. The outstanding Class A convertible preferred stock will convert, at a future date, to common stock at a rate of 220.28 common shares for each preferred share, which is equivalent to an additional 33,167,339 common shares. Using the aggregate number of common shares, including the Class A convertible preferred stock on an as-converted basis, of 1,053,912,774 and the February 22, 2010, closing price on the NASDAQ exchange of $0.36 per common share, the company's total market capitalization was approximately $380 million as of that date.
Pursuant to the SAR Plan, the Company will grant to its Union Employees stock appreciation rights ("SARs") with respect to 263,746,809 shares of the Company's common stock. Substantially all of the SARs were granted to Union Employees on March 1, 2010 at an exercise price equal to $0.48 per share. Each Union Employee received one SAR under the SAR Plan for each option that the Union Employee received under the Stock Option Plan. Each SAR provides the Union Employee the right to receive a cash payment from the Company equal to the closing price of the Company's common stock on the date of exercise less the exercise price of the SAR. The SARs will vest in full on the first anniversary of the grant date, and will be exercisable for 10 years following the date of grant, subject to the terms of the SAR Plan. Upon a reverse stock split, the number of SARs will be proportionately reduced and the exercise price of the SARs will be proportionately increased. If the shareholders of the Company approve the Stock Option Plan, the SARs granted under the SAR Plan will automatically terminate.
Old messages. Check out the one where someone is incredulous at the possibility of YRCW's market cap only being $500 million.
Note that the $0.48 strike price for the union employees who received options are now exercisable. Probably won't have much effect on the stock. But might cause some of the union members to vote to allow YRCW to only make percentage payments to the pension fund come January. That is of course if the union members care about the stock. Ussually more about money in hand for those guys. Plus they have already made a lot concessions. I don't know too many people who would approve pay cuts.