The Company also utilizes structured stock repurchase agreements consisting of prepaid written put options on the Company�s common stock. The Company pays a fixed sum of cash upon execution of each agreement in exchange for the right to receive either a pre-determined amount of cash or stock depending on the closing market price of the Company�s common stock on the expiration date of the agreement. Upon expiration of each agreement, if the closing market price of the Company�s common stock is above the pre-determined price, the Company will have its investment returned with a premium. If the closing market price is at or below the pre-determined price, the Company will receive the number of shares specified at the inception of the agreement. Any cash received, including the premium, is treated as an increase to additional paid in capital on the balance sheet in accordance with the guidance issued in FASB Emerging Issues Task Force Issue No. 00-19, Accounting for Derivative Financial Instruments Indexed to, and Potentially Settled in, a Company�s Own Stock .
During the six months ended September 30, 2006, the Company received $17.4 million in cash and 7.7 million shares of its common stock from open structured stock repurchase programs. At September 30, 2006, the Company had no structured stock repurchase agreements open. From the time of the stock repurchase program inception through September 30, 2006, the Company entered into structured stock repurchase agreements totaling $164.5 million. Upon settlement of these underlying agreements, the Company received $105.9 million in cash and 23.0 million shares of its common stock at an effective purchase price of $2.55 per share.
Structured repurchase agreements got them from 330M shares to 281M shares outstanding at a pretty low average cost per share. Gargus said on last call there were no repurchase agreements outstanding for this last quarter. Nothing mysterious about the existence of these arrangements.