Cashless Exercise

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Cashless Exercise

A method of exercising employee stock options in which the employee borrows enough money from a broker to buy the underlying stocks and immediately resells enough shares to pay the loan, in addition to taxes and commissions. This is a form of buying on margin; ordinarily, most brokers would not allow the employee to buy on margin, but, in cashless exercises, they receive repayment almost at once. This results in a profit for both the broker and usually for the employee as well.
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Under the terms of the agreements, the number of Common Shares issuable per Series B Warrant with respect to Net Cashless Exercises prior to the close of business on November 17, 2015 may not exceed 33.
announced today that it has entered into definitive agreements with the holders (the "Consenting Holders") of approximately 90% of its outstanding Series B Common Share Purchase Warrants (the "Series B Warrants") that are intended to reduce the dilutive effect of the exercise of the Series B Warrants by establishing a cap on the number of shares issuable upon alternate net cashless exercise ("Net Cashless Exercise") of the Series B Warrants until the close of business on November 17, 2015 and by limiting the number of shares that the Consenting Holders may sell until the close of business on October 9, 2015.
Dodd, Chairman, President and Chief Executive Officer of the Company remarked regarding the agreements, We believe that the agreements we reached with the Consenting Holders should temporarily reduce the selling pressure on our stock by limiting the additional dilution from the Net Cashless Exercise of Series B Warrants.
For example, the Act may be interpreted to prohibit cashless exercises of stock options, in which the payment to the company of the option exercise price, including any withholding tax, is deferred until a few days after exercise when funds become available from a simultaneous sale of the exercised shares.
Of these cashless exercises, a total of 3,822,442 were exercised on February 25, 2015.
During its review of the third quarter, management determined that certain cashless exercises of stock options were conducted in such a manner so as to require variable plan accounting for all options issued under its stock option plan.
The percentage of common share ownership figures in the three foregoing paragraphs give effect to the cash and cashless exercises by Fairfax, Mr.
The Corporation also announced today that it plans to offer to the holders of Warrants the right to submit their Warrants for the exercise of the subscription right thereof for common shares on a cashless basis on the terms and conditions to be set forth in an offer letter to warrantholders (the " Offer Letter ") and in the cashless exercise election form to be transmitted therewith (such exercise, a " Cashless Exercise " and such offer, the " Offer ").
Gallogly intends to use broker assisted cashless exercises for the transactions.
This opportunity to do Cashless Exercises will remain open through expiration of the warrants on January 15, 2009.
NASDAQ: AEZS)(TSX: AEZ) (the "Company") announced today that it has entered into definitive agreements with the holders (the "Consenting Holders") of approximately 90% of its outstanding Series B Common Share Purchase Warrants (the "Series B Warrants") that are intended to reduce the dilutive effect of the exercise of the Series B Warrants by establishing a cap on the number of shares issuable upon alternate net cashless exercise ("Net Cashless Exercise") of the Series B Warrants until the close of business on November 17, 2015 and by limiting the number of shares that the Consenting Holders may sell until the close of business on October 9, 2015.
Dodd, Chairman, President and Chief Executive Officer of the Company remarked regarding the agreements, "We believe that the agreements we reached with the Consenting Holders should temporarily reduce the selling pressure on our stock by limiting the additional dilution from the Net Cashless Exercise of Series B Warrants.