The underwriters have reserved for sale, at the public offering price, up to 7.5% of the shares of our Common Stock being offered for sale to persons who are employees, officers, directors and individuals having a relationship with us through a directed share program. We will offer these shares to the extent permitted under applicable laws or regulations. The number of shares available for sale to the general public in this offering will be reduced to the extent these persons purchase reserved shares. Any reserved shares not purchased will be offered by the underwriters to the general public on the same terms as the other shares.
I can't say I'm surprised that they went with $100 million but they had better not give those shares away.
Do not know what reserving 7.5% for employees and directors and those having a directed share program with them means. I sure hope it doesn't mean those who hold in street name are excluded. That would be a real slap in the face of their shareholders.
The dilution would be roughly 35 to 40 million shares, or more than doubling the current count. It's hard to see book value much diluted from here. The upside will certainly be tempered. It's kind of tasteless to bid at current prices of $3.67 (book is around $3.7) knowing Nara/Center are only traded at 1.2 times book, even though tax asset is likely to be reversed.
Regardless, the mid to low $3's will likely be the turning point.
Anyone is going to contact the restructuring department of his/her broker to see how to participate?
1) What is the value of the underlying collateral of the loans? On that count I have virtually no idea and that is a sorry position to be in. There is no getting around it that I am aware of.
2) Deferred tax asset. If they trigger an ownership change which limits the ability to utilize the tax loss carryfoward management had better have some good reasons. I'll be looking into this is issue.
Here is a disclosure when Vonage went public. They offered some shares to customers. My guess is that they are offering shares to customers which is certainly a good thing although I hope it works out better for WIBC customers than it did for Vonage customers who lost their shirts.
Boy I'll be angry if they sell shares to insiders and don't offer them to current shareholders.