Its 3 million, not 5 million. And the employees are not allowed to sell it for 13 months, while the company completes share re-purchase!
On September 26, 2013, the Compensation Committee of China Information Technology, Inc. approved the grant of an aggregate of 3 million restricted shares (the “Shares”) under the Company’s 2013 Equity Incentive Plan (the “Plan”) at a purchase price of $3.00 per share to some employees (the “Employees”) of the Company. The Shares are vested immediately upon the grant.
In connection with the grant, upon the approval of the Company’s Audit Committee, the Company, the Company’s Chief Executive Officer, Mr. Jiang Huai Lin (“Mr. Lin”), and each of the Employees entered into separate employee incentive stock purchase agreement (the “Agreement”), pursuant to which, among others, each of the Employees agreed not to resell the Shares until: (1) the Company has completed its share repurchase program that it may adopt shortly after the grant or (2) 13 months after the Shares are issued to the Employee, provided that, the Company does not adopt a share repurchase program during such 13 month period. During the period when the Employee is allowed to resell its Shares, if the Employee resigns, his or her employment is terminated by the Company due to the Employee’s violation of applicable labor law or the Employee is determined to be missing, unconscious, or dead by relevant government authorities, the Shares owned by such Employee will be acquired by Mr. Lin at a purchase price of $3.00 per share.
In addition, the Company agreed to guarantee the bank loans borrowed by certain non-officer Employees to pay the purchase price of the Shares. These Employees agreed to deposit the stock certificates representing the Shares with the Company until the bank loans have been fully paid off. If the closing price of Shares as reported on Nasdaq market is lower than $3.00 per share on the first trading day after the third anniversary of the date that the
Such venom, and for what? Just a little song from Family Guy. I don't even smoke weed, really. Just riding the trend with CNIT, looking outside the window, enjoying the view, waiting for the trend to end, for my stop to be triggered. Eveyone seems so tense on the board. Thought they could use a little relaxation.....
When I tell you every person needs a way of feelin' good
Every kitty needs a ball of string and every dog a stick
But all you need is a bag of weed to really get a kick!
One, two, three, four, five, six, seven, eight
A bag of weed, a bag of weed
Oh, everything is better with a bag of weed
it's the only hope that you ever need
Cause everything is better with a bag of weed
Is that what is happening? Why did no one tell us before???? I have been holding this bad stock all this time, and didn't know I was losing money with it. Thanks. Thanks a lot for letting us know. You can't rely on SEC or management or anyone else to tell us these things. Glad someone like you finally came along to speak the truth!
No insider purchase filings with SEC. Was all the talk about insiders participating in the offering a lie? If not, why haven't they filed?
That is not good news. It means the rise in the last few days was caused by people in the know, buying in anticipation of the interview. Now they will be selling to those who watched TV and decided to buy today. They will be selling in turn, in a few days, when this goes back below 4.5. Out....
At about 1pm Eastern, one of the directors filed a purchase of 2000 shares x 3 at $4.17. The shares were purchased for trusts for two daughters and grandson. That is all.
You have to admit, shorts have a point. From the "fundamental" perspective, this is a total piece of #$%$. Unless you know something that is not in the reports. Losses, debt, etc. And you don't know that there is no "pump". It may be some newsletter that does not re-print on Yahoo that is pumping. All of that is possible.
At the same time, the stock is in clear multi months uptrend. So perhaps we do not know or do not understand something that is motivating market participants to buy this.
There is a clear divergence here from what the public information and the chart are saying. I chose to stay with the chart, so I am long....
The people who showed up in the last few days are nothing but a source of amusement. This is the extend of their thinking: the stock is up a lot, and there are no news, so it has to go down. Oh, and its Chinese, so fraud.....
First of all, there is no crime in being short. I certainty have a bunch of short positions, just not in CNIT. Check my prior messages. For all I know, this company is a worthless piece of #$%$. But, the stock is in an uptrend, so I am long. Have been for a while. Lets just have a little sense of humor about all these participants who have popped up in the last 3 days.
ASX forced the company's hand. They had to admit that they have noting up their sleeve. Which means that the action from the last 2 days was probably a false breakout engineered by some hedge fund looking for higher prices to short. We will see a drop tomorrow and the resumption of southbound movement next week. I will take my loss sometime tomorrow and move on to greener pastures. Congratulation to shorts. Longs can take a loss now or keep watching the ticks and post angry messages. And yes, yes, yes, I am a paid basher, scared short, bla, bla, bla.
Or USU. They had debt that was like 10 times the company's market cap and virtually no revenues. Went up 4 times due to short squeeze.
Its 27% now. I am not making a judgement on whether this is a real company or a scam, one way or the other, but I have seen completely worthless companies skyrocket 400-500% on clearing of excessive short positions.