As we know, this investment banker purchased all the shares in the last stock offering. They are a market maker also in Netlist and have NLST listed as a "Alpha-Select" company on their list". Now it is highly likely that they are holding the 8M plus shares that they bought for $1.21 for resale later....OR they could be currently selling them now at a controlled rate and this was done to bring more supply into the market. Seeing how the price of NLST was jumping all over the place, it could have been due to a lack of supply of shares and what we were seeing was the price reacting to it. Perhaps once they sell the holdings, the free market will take over again?
Considering that they exercised the over-allotment option in this "firm commitment" underwriting, it is unlikely they are holding any of the shares now. Underwriters make their money on the spread between the public offering price and their purchase price; this "underwriting discount" is about 7.3% in this deal.
Yes...but remember they are also MM in this stock and could be selling for their own account in which case I think they would be holding to sell at higher levels. I cant imagine they would want to sell at $1.35.
Company Lock Up. The Company will not, without the prior written consent of the Underwriter, from the date of execution of this Agreement and continuing to and including the date 90 days after the date of the Prospectus (the “Lock-Up Period”), (A) offer, pledge, announce the intention to sell, sell, contract to sell, sell any option or contract to purchase, purchase any option or contract to sell, grant any option, right or warrant to purchase or otherwise transfer or dispose of, directly or indirectly, any shares of Common Stock or any securities convertible into or exercisable or exchangeable for Common Stock or (B) enter into any swap or other agreement that transfers, in whole or in part, any of the economic consequences of ownership of the Common Stock, whether any such transaction described in clause (A) or (B) above is to be settled by delivery of Common Stock or such other securities, in cash or otherwise, except, in each case, for (x) the sale of the Securities as contemplated by this Agreement, (y) issuances of shares of Common Stock upon the exercise or conversion of Options, warrants or convertible securities outstanding as of the date of this Agreement, and (z) the issuance of employee stock options not exercisable during the Lock-Up Period pursuant to the Company Stock Plans as in effect on the date hereof in the ordinary course of business consistent with past practices. The Company agrees not to accelerate the vesting of any option or warrant or the lapse of any repurchase right prior to the expiration of the Lock-Up Period. If (1) during the last 17 days of the Lock-Up Period, (a) the Company issues an earnings release, (b) the Company publicly announces material news or (c) a material event relating to the Company occurs; or (2) prior to the expiration of the Lock-Up Period, the Company announces that it will release earnings results during the 16-day period beginning on the last day of the Lock-Up Period, then the restrictions .........