Since Iroquois made kissy-poo with management, isn't it interesting how the topic of all the options management gave themselves with an exercise price of $1.33/share last year isn't brought up any longer?
Why isn't Iroquois screaming bloody murder any longer about Brown's 750,000 options whose issuance "was exquisitely timed"?
Does it make any difference that Iroquois now has more say in things? Or now that they have their board seats they'll just sit there quietly and behave?
The Fund filed a Verified Amended Derivative Complaint in November, 2012 against then-directors Raymond Smith, Laura Clague, Helen Adams, and Thomas Brown and the Company’s chief financial officer Katherine McDermott (“Defendants”) and the Company as nominal defendant, asserting breach of fiduciary duty and other violations of law in connection with Defendants’ issuance of stock options for their own benefit representing 3% of the Company’s then issued and outstanding shares with incredibly low exercise prices. The Complaint asserts that the issuance of the options was exquisitely timed to follow the announcement of disappointing earnings results and precede material non-public positive earning events and to serve as a replacement for options held by Defendants that had expired, were about to expire, and/or were “out of the money”.
Did you read the part of the agreement where those were re-priced from $1.33 to $3.00
Brown has a lot of options at much less than the $1.33. He will not suffer and its mindboggling why he overplayed his hand with the new shares. The only sure things to happen in these situations are that shareholders are penalized in the short term (maybe long term also) and lawyers get richer.
I'm happy that shareholders have more say in this company. Its been a long time coming.