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  • clearcoated clearcoated • Nov 16, 2004 5:53 PM Flag

    $220,000

    from today's TheStreet.com story:

    "Fearing possible legal action over its decision to declare the 4.1 million shares invalid, Travelzoo did some backpedaling last month. The company announced in October that it would make cash payments to any former stockholders who could prove that they had received free shares and weren't aware of the need to turn them in.


    In its quarter filing, Travelzoo set aside $220,000 to reimburse its former shareholders. But the company said it's impossible to say how much it might end up owing."

    ----------

    $220,000 will pay for only 2,200 shares of the 4.1 million eligible shares

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    • ahj_2000 ahj_2000 • Nov 16, 2004 8:57 PM Flag

      What this means is that there are 1000s of folks out there with shares worth 100s - 1000s and they have no idea. They media will love a story like this! Let's get it out there especially to business journalists.

      It will also be a great story -- how this share give away is about to bust Travelzoo's share price!

    • Frozty23 Frozty23 • Nov 16, 2004 5:59 PM Flag

      If the SEC decides that TZOO must pay market price at the time the shares are claimed, and a significant number are claimed... that could bankrupt this little gem's bank account.

      It would only take claims for 720,000 shares at even just $50 to suck up TZOO's $6M on-hand plus the $30M from the PIPE. This price runup could be TZOO's demise.

 
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